A big 2020 year coming up IMO, this company is solid, they are growing steadily, measured growth, key partners, will be moving from a B2B to a B2C modek by Q3. No reverse share spilt.
Premium cannabis - same as craft beers are what the 40- 60 age group prefer which I think is a big part of the legal cannabis demographics.
Those in doubt, here is an excerpt from FIRE's Aug. 16, 2019 news release:
Looking for a Big 2020
Based upon prior quarterly reports and the preliminary estimate for Q4, Supreme should post sales of approximately $40 million for fiscal 2019. Owing largely to ongoing scaling of 7ACRES production and introducing new, higher-margin products entering the market, Supreme is forecasting net revenue for fiscal 2020 in the range of $150 million to $180 million. Management also expects positive adjusted EBITDA for fiscal 2020.
The 7ACRES indoor hybrid facility in Kincardine, Ontario was operating at approximately 180,000 square feet of flowering room capacity until May, when Health Canada approved the addition of another 50,000 square feet. At 230,00 square feet, the company can now generate about 33,580 kilograms of dried cannabis annually.
Per the plan, the facility (including offices, grow space, etc.) will span over 440,000 square feet when expansion is complete, with expected production of 50,000 kilograms of premium dried cannabis each year.
It is also expected that 7ACRES will complete its transition from a wholesale business to premium consumer brand by Q3 fiscal 2020, with complete in-house packaging capabilities for all flower products under the 7ACRES' brand.
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Supreme is seeing growth coming from multiple sources in its portfolio, as many of its business developments are relatively recent. As mentioned, Truverra was acquired this week. The acquisition of Blissco was completed only a month ago. Blissco is expected to produce more than 7 million tincture bottles per annum by this December with a focus on sales throughout the global cannabidiol (CBD) markets.
The partnership with hip-hop superstar Wiz Khalifa and his Khalifa Kush Enterprises (KKE) Canada was forged earlier this year with the purpose of launching a new ultra-premium lineup of cannabis products under the KKE brand line. The first product, KKE Oil, was introduced in June.
A new partnership with PAX Labs was also penned in June. Through this collaboration, 7ACRES became one of only four licensed producers selected as a partner to create cannabis oil pods for PAX's Era, a market-leading vaporizer and best-selling pen-and-pod system in the United States.
Elsewhere, the launches of Cambium Plant Sciences and Supreme Heights were only announced in April and June, respectively.
In South Africa, CBD was officially removed from the country's Schedule 7 list of highly controlled drugs in May, opening a substantial market opportunity for Supreme's Medigrow subsidiary, a licensed producer headquartered in Lesotho.
No Need for Share Consolidation
With all these wheels in motion, management has decided that it will not pursue a reverse stock split that was approved at the company's 2018 annual general meeting. At the end of March, FIRE had about 277 million shares outstanding and $75.02 million in cash on hand, enough to fund all its planned initiatives.
Leveraging its fundamental strengths and litany of upcoming revenue drivers, management believes it can secure non-dilutive financing with tier-one banks and other lenders on favorable terms for any future growth initiatives.
Read more at https://stockhouse.com/news/press-releases/2019/08/16/supreme-cannabis-pulling-away-from-peers-guides-up-to-180-million-in-2020#sgj3atx4vYQw60bC.99