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Supreme Cannabis Company Inc. (The) T.FIRE

The Supreme Cannabis Co Inc is a Canada-based company engaged in the production and sale of medical and recreational cannabis. Its portfolio includes products that address recreational, medical, and wellness consumers. Its brands include BlissCo, Truverra, 7ACRES, Sugarleaf, and Hiway.


TSX:FIRE - Post by User

Post by johnaleon Mar 03, 2021 9:55pm
390 Views
Post# 32712006

Hidden Details In Prospectus - important info

Hidden Details In Prospectus - important info

1) ~27.3 million shares were converted from the convertible debenture in February. Reduction of 7.8mil in convertible debt - leaving about 27.3mil in convertibles and only 2.184mil in interest/year. Plus eliminates a huge future debt of accretion debentures. 

MM owned ~ 29mil of that convertible debt. Which means they sold their 44mil shares and possibly shorted out some more shares and covered with a conversion rather than open market. Other debt holders did the same. 

possible that the writing is on the wall for a BUYOUT or MERGER - as the accretion debs payout March 9th and are material (which has been lost with conversion). In any change of control, the debentures need to be paid within 30 days. Seems like a signal that these convertibles are about to be toast - but - this is not for sure as it may just be a paper transaction. I would call it a soft signal. They could have covered on the open market - and kept the interest and accretion payouts. 

2) 61mil BMO line March 2nd untouched - with 70mil cash ... they didn't want to pay any of the debt down? Reduce interest? Why hold so much cash? Raise more? 

Strong marker for acquisition, or being acquired/merger. 
 

Really interesting. Given Beenas strength in operations, and ability to grow revenues - I'm inclined to think she's primed to aquire an asset. The action on the convertibles suggest a change in control though - which could mean a the opposite. 

 

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