Supreme Cannabis Company Inc. (The) T.FIRE

awful is the word

[jfogarty12]

Supreme Cannabis records $57.5M in impairment charges in Q3, takes $72.3M loss

Supreme Cannabis reported fiscal third-quarter results on Friday with a slight sequential improvement in revenue while booking $57.5 million in asset impairments. The Toronto-based cannabis producer also reported a $72.3-million loss, compared to a $17.3-million loss in the prior quarter. Supreme's adjusted EBITDA fell to a $11.7 million loss. The company said its impairment charge stemmed from goodwill tied to its BlissCo and Truverra acquisitions and could be attributed to "slower than expected development of the recreational cannabis market in Canada." It has just $23.1 million in cash, down from $48.7 million in the prior quarter. 

[RealistGhost21]

You are right the compagny report over $72 millions lost. There is no way they survive.

[OptGreen]

Awful is what we were jf, maybe done by now without Dec restructuring...this all has to be cleaned up and dealt with before we can move forward. There is no shortage of issues with most in the sector and few in as good shape as FIRE at this point. FIRE already has what everyone else needs in quality of product, state of the art facilities of which are pretty much all completed and operational

[johnale]

JF - the impairment was going to happen in Q4 - it just came a Q early. Besides - fire wouldn't have any vapes, oils or any 2.0 products without blissco. If we had 2 mil more rev but same losses - we would be talking about a good quarter.  Let me give you some perspective good and bad:  8% increase in revenue Q over Q  23% decrease in expenses Q over Q (which is huge) 

[maritimedreamer]

Johnale, if I am reading things correctly....technically they did sell more volume, so more grass in consumers hands. but bc the average price sold dropped the overall revenues Was flat. The only products they brought out in q3 were sugarleaf pre rolls dropping our average price besides the retail price drops. No we have jumped from 20 sku to 30 this Q, and some were premium price (7accc and pur

[johnale]

Either way maritime - it's just a little slow for me - given others posted solid gains in rec revenue- but ya we sold way more volume. We also entered quebec with 2 strains and a pre roll and it accounted for 30% of our revenue!!  I'm happy we have a stable price in the wholesale market now. And there is a consistent 3.3 mil there to be had.  the truverra isreal

[Munny23]

Good analysis guys. I feel like they are making the right decisions in strategy, specifically their people, pricing and product. They are becoming more lean and as this industry matures, they are strategically  positioned well. I actually added to my existing holdings yesterday, rather than holding or selling.  glta!

[OptGreen]

Good to here Mun and if I wasn't full I would be adding at these levels as well...there was not a lot that was unexpected, the ~$58mil adjustment of Blissco and Truverra was not expected and interesting. The quarter is pretty well as per revised Dec guidance and there appears to be an effort not to waste any more positive than necessary on the already low volume quarter? There has been much

[watchmeplz]

In my opinion, thanks opt for your useless post. It is definitely interesting they took a 58m adjustment on Bliss and Tru isn't it... LOL.. interesting is definitely the word.  Its funny how you make reference to 40 mil quarter, thats basically break even with all that debt, so wheres the profit going to come from then? Magically itll turn up.. next quarter, right? You know what else is

[watchmeplz]

** 4.8m production cost increase.

[johnale]

Their operating costs (actual cash costs) have reduced to 9.5 mil. Including interest payments looking at 14.5 mil outgoing from here on out.  no capital outflows - and they expect operating expenses to continue to be improved.  14.9 mil receivables and 12.5 mil in liabilities - net positive  at end of q3.  they also sold cambium for over 1 million.  expenses are

[Pierreolivier15]

What about the $100MM of convertible debentures with a maturity of 16 months away. I invested so much money in this compagny because I believed in the product. I just lost 45K. I was so stupid. It was a mistake. Let's be honest, this compagny is doomed. There is no way this compagny will survive. Thats a humility lesson. I will never ever ever invest in penny stocks. Good luck to all

[RealistGhost21]

Hh Pierre Olivier you only have yourself to blame here. Look at your post history. You denied the facts of the last 8 mouths. Whish you the best in your futur investment anyway.

[johnale]

Sorry to hear man. Most of us are all underwater here too- I invested with the same perspective - good products.  Top line revenue wasn't great - and my patients is thinning as well. But it was a transition quarter with Colin doing a lot of restructuring. Sales team didn't really kick in until late Q3.  Given the products coming to market and new sales and distribution

[OptGreen]

You haven't lost until you sell Po, this company can produce north of 50mil grams per year of the best product in the marketplace and they haven't even started to roll yet, In any case what ever you choose buy, sell or hold, all the best to you. JMHO...Opt

[johnale]

The frustration is having 3 straight quarters below low end estimates of top line revenue. Although this q was a tiny miss. 9.75 vs 10.  Even if you add back the future potential price adjustments you had 10.5mil. Still weak sales given the March bump.  They get a pass bc of all the restructuring in the quarter and the effective cost reductions. As well - they have a new sales

[RealistGhost21]

They report a lost of $72 millions period. Again how did you speak with IR? quote=johnale] Their operating costs (actual cash costs) have reduced to 9.5 mil. Including interest payments looking at 14.5 mil outgoing from here on out.  no capital outflows - and they expect operating expenses to continue to be improved.  14.9 mil receivables and 12.5 mil in liabilities - net positive &

[OptGreen]

It sounds like you do not see the FIRE wake here either joh, nothing below screams failure...looks like just cleaning up some loose ends and shed some deadwood. The sales numbers do not support a future for the compnay, if they were continue at these levels but there is nothing to indicate anything of the sort...they should easily be in the $25-30mil range for current quarter, which will change

[Pierreolivier15]

3 disapointing quarters.. The compagny has to much debt to stay optimist. They need revenue to pay the debt. Wich they dont have.

[Umbre007]

Do somebody think someday this stock Will go up

[johnale]

Well they've been audited and basically stripped all excess value from segments of their buisness.  right now their NAV is about .45 cents a share - so that's bare bones. (Debt included in calculation)  they need to show that their new sales strategy with education and direct retail contact weekly - will work.  most importantly - their new price points.  All

[George141]

yes I think this stick Supreme will most definetly go up. Why would it not?...It has everything finally going for it...

[theTransporter]

  except sales product demand. They seem to struggle there. 

[George141]

...yes Trans...of all the hurdles a company has to jump to get where Supreme is...this is not a major hurdle to overcome....WHY? The production is there... the quality is there..voted top brand for 2 years..furthermore we seem to finally have the ducks in a row. Fowler was good....but in the end he hurt the company, Nav tried but his guidance way over the top hurt us in the short run. However in

[Bever73]

Nav's guidance "way over the top" lolololol - you mean no lawsuit yet? Incredible! 150-180m right???? Is he still working for the co. After that?? What a bunch of bleeding hearts!! God oh gawd why did they remove the option of a RS At the exact moment they might actually need it?? Makes perfect sense have it linger for a year for no reason and then get rid of it when they need it

[George141]

...she has gone up...up.. up..like a flying balloon...now if you see a bald ban in the sunshine flying upwards....ask him"..so do you know how to stop ballon from going up?...."no" he says..".do you know anything about propane barbeques?"

[RealistGhost21]

You just start to wake up a little bit to late.

[RealistGhost21]

You said you had a good talk with IR yesterday??? Tell me how...and what Phone number did you used to talk to them? Of course they will reduce cost in Q4! Instead of being a $72 millions lost it will be $71 millions and kaput!