Many things to be positive about with SupremeThere are many things to feel positive about with Supreme. I joined this mornings conference call with CEO Beena and I came away feeling pretty darn good about her being at the helm. As much it's impressive to see a Positive Adjusted EDITDA of $3.6 million, equally impressive is Supremes strong liquidity position with a cash balance of $41.9 million per forma. By the way, that positive adjusted EDITDA of $3.6 million......that's a significant number considering it's up from 0.3 Million in the first quarter of fiscal 2021. And name me a few other cannabis companies that are in a cash balance position to the tune of $41.9 million. Here are a few other important numbers. Consolidated net revenue grew by 54% compared to quarter one to 18.3 Million, while recreational net revenue ...which is a signicant area of focus for the company grew by 70% as compared to last quarter to 12.7 million.. Their 3446 new listings during the second quarter is up from 2258 new listings feom the previous quarter. I live just down the road from Supremes 7 Acres and I've had two tours of their production facility over the past five years, and believe me, their operation under Beena's incredible leadership is quite remarkable..... Natural Gas has just been installed to replace prppopane fuel and this has created savings of over 1 million dollars per year and Beena has also reduced expenses via staff reductions while still maintaining a high level production facility... So one may ask, with all this great news, how could the share price drop today, in fact, should we not have seen a substantial increase? Once again, Supreme was the victim of two things..
1) the entire cannabis sector suffered signicant losses but consider our reduction of 6.4% drop while other companies were experiencing 10-20% drops. We fared pretty well actually
2) the cannabis market has been flying high and was due for a correction and just so happened to be precisely the same time as financials being released....again rotten luck.
Hang in there Supreme family. One only needs to read the financials and follow the rave reviews Supreme is receiving from major investors and we all know it's just a matter of time that Supreme starts to fly high. Remember less than two weeks ago share prices were stalled at less than 20 cents and then very quickly ballooned to 50 cents...We were due for a correction and it happened across the sector today. The future is very bright for Supreme. Hang in there folks and have a wonderful weekend and try and set aside your investing woes for a few days.. Cheers. Mike from Canada EH!!!!!