FIRE is amongst highest quality cannabis cos -but trading at...a significant discount to others. It is a screaming BUY at these levels....
Here's the facts :
Supreme Cannabis Continues to Put Points on the Board: Delivers Record Year -- CFN Media
SEATTLE, Sept. 26, 2018 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE - CFN Media Group (“CFN Media”), the leading agency and financial media network dedicated to the North American cannabis industry, announces publication of an article discussing The Supreme Cannabis Company Inc. (TSX-V: FIRE) (OTCQX: SPRWF) (FRA: 53S1).
The Canadian recreational cannabis industry is set to launch shortly on October 17, and investors are eagerly waiting to see how the market will unfold. There are more than a hundred licensed producers (“LPs”) in the market in various stages of build out - from securing cultivation or sales licenses to building production facilities - big promises have been made to investors.
It should be no surprise that only a few LPs have actually generated any revenues to-date and even fewer have demonstrated a clear ability to scale effectively. Producers who are already growing at scale and putting up sales numbers will have a major head start when the recreational markets kick off. Others will find it challenging to catch up given the limited shelf recreational space, a tall task that could become insurmountable if the market starts to identify the early-movers as the “winners” in the space and access to capital dries up.
The Supreme Cannabis Company Inc. is a licensed producer that has been working diligently behind the scenes to build a strong core business focused exclusively on premium brands and products at scale. Supreme has secured coast-to-coast distribution agreements in the Canadian recreational cannabis market and its products will be listed exclusively in the premium category. At the same time, the company has been securing wholesale agreements with other LPs to sell its premium product into medical channels, including a $2 million supply agreement with Tilray Inc.
The ability to provide product for two channels, at a time when many other LPs are struggling to show revenue, is a strong positive sign that Supreme is successfully executing on its business plan.
Financial performance suggest Supreme is punching in the heavyweight class
Supreme Cannabis recently announced its year-end and fourth quarter fiscal 2018 financial results (Supreme has a June 30 fiscal year end). Revenues for fiscal 2018 were $8.85M, which is one of the best first four quarters of revenue among all licensed producers including market leaders like Canopy Growth and Tilray Inc., who recorded revenues of $1.9M and $6.9M, respectively, in their first four quarters of sale.
Supreme Cannabis’ fourth quarter revenues were $3.55M, 71% greater than its third quarter of $2.07M. The fourth quarter represents an annualized revenue run rate of $14.2M which trails the industry leaders for now, but is already greater than other notable industry names such as Cronos Group and The Green Organic Dutchman.
Supreme Cannabis’ financial results demonstrate once again that the company is a player in the cannabis space and punches at the same level as many of the industry heavyweights. Yet, despite its financial strength, the company trades at a significant discount to others.
For example (note: market capitalization figures as at Sept 21, 2018):
- Tilray’s revenue run rate for the most recently disclosed quarter was approximately C$51M, which is slightly over 2.5x Supreme Cannabis ($14.2M) – however, Tilray’s market capitalization ($14.8B) is more than 26x Supreme Cannabis ($0.56B)
- Cronos Group revenue run rate of $13.6M is approximately 5% less than Supreme Cannabis, yet its market capitalization ($2.8B) is more than 5x Supreme Cannabis
- The Green Organic Dutchman has yet to report any revenues, yet its market capitalization ($2.1B) is 3.7x Supreme Cannabis
Looking Ahead
The Supreme Cannabis Company Inc. (TSX-V: FIRE) (OTCQX: SPRWF) (FRA: 53S1) presents investors with an opportunity to acquire a stake in a licensed producer who aims to have a distinct proprietary advantage in the market with its focus on premium brands and products, tangible revenue and a track record of rapid growth for a significantly reduced valuation compared to many of its peers.
For more information, visit the company’s website or download their investor presentation.
Please follow the link to read the full article: https://www.cannabisfn.com/supreme-cannabis-continues-put-points-board-delivers-record-year/