gbenga wrote: Blissco CBD Oils Launch
Since October 17, 2019, Supreme Cannabis has established a highly successful recreational brand. 7ACRES, is Supreme Cannabis' brand for the quality-oriented cannabis enthusiast. The company has successfully launched its premium flower products for this consumer and is looking for opportunities to broaden its consumer reach, launching brands for different experiences.
In Supreme's bid to capture its share of the recreational market, Toguri is being tasked to develop and drive sales strategies, business development and retail growth. This includes supporting the launch of new products under Supreme Cannabis' wellness brand, Blissco. With a focus on the wellness consumer's experience, Blissco's high-quality CBD oils were recently launched into the Canadian market. Founded in 2013 and acquired by Supreme earlier this year, Blissco is a respected brand that has a facility with advanced extraction infrastructure to produce over 7 million tincture bottles by New Year's Day.
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The new Blissco CBD oil, Pr Dew, further diversifies the Supreme product offerings, which include the Blissco brand, dry flower from 7ACRES and high THC cannabis oils from KKE. 7ACRES was distinguished as "Brand of the Year" at the Canadian Cannabis Awards last quarter. Against that backdrop, Toguri will leverage his experience to maintain growth in the 7ACRES brand and distribution across the country, which includes agreements to sell the brand in 8 provinces.
A Bold Target: $150 Million
"As we grow our team, we believe our focused business and industry leading culture will continue to attract exceptional personnel like Mr. Toguri," commented Supreme Cannabis CEO Navdeep Dhaliwal in a statement on the new VP of Commercial.
During the first quarter of fiscal 2020 ended September 30, 2019, Supreme reported revenue of $11.43 million. That more than doubled the $5.1 million from the year prior quarter, although it was a contraction from $19 million in Q4 fiscal 2019, as the company underwent a transitory period from a wholesale outfit to a consumer packaged goods firm, as well as coped with (a now-rectified) mechanical failure in three 7ACRES grow rooms and, in general, an extremely challenging Canadian market during the quarter.
Management is not discouraged by one sluggish quarter, maintaining its guidance for fiscal 2020 for revenue in the range of $150 million to $180 million and positive adjusted earnings before interest, taxes, depreciation and amortization (EBITDA).
Furthermore, Supreme entered into a credit agreement with Bank of Montreal for $90 million of senior credit facilities consisting of a term loan of $70 million and a revolving credit facility of $20 million. In an environment where "good" money has been very difficult for cannabis companies to come by, the credit facilities speak to the quality of Supreme's operations and business model as it moves into being a full-fledged CPG company.