Supreme Cannabis Company Inc. (The) T.FIRE

$40M revenue per quarter needed to BREAK EVEN

[theTransporter]

Quite a long road ahead of these guys in order to just break even, let alone turn a profit.

One thing to stop cash burn, another thign to pay back the $85Mdebt that is coming due in 18 months from now.

How did I arrive at the $40M per quarter? 

Operating Expenses:  $15.3M per quarter
Other Expenses:  $4.9M per quarter (to service debt)

Seeing that their current margin on products sold is approx 50%, they will need to sell about $40M per quarter to break even.

These guys are struggling to get past $12M.    They have $46M of product in inventory at the end of Q3 that clearly shows THEY CANNOT SELL PRODUCT!   

It seems like in Canada there is a greater demand for SH1T product than there is for high quality product.  Let's face it, Supreme picked the WRONG strategy to focus on high-end product as clearly there is either NO DEMAND, or THEY CANNOT SELL.  I pick the later of the two.

Best hope for anyone invested here is they sell the company.

[Vulcan]

can you give us an analysis of canopy and acb.. be interesting to compare thanks in advance

[watchmeplz]

In my opinion, Actually this has been the smartest thing I've heard a long say on this board. Not only vaguely accurate about the expenses but even on the cheap low end product which Canadians want most, which is the exact opposite of the original fire mythology, (who knows now, they bought a trimmer go figure). Exactly why I was saying Hexo model was a good one, pricing oz at 125.. only

[Stongy79]

Fire needs to compete with VFF, Apha, Ogi, Weed, Acb, Sundial etc, IMO they have better more consistent product than most LP's out there, they really need to drop their prices to lower than $9 a gram and then they will have a chance once people try theirs and compare to others at the same price, let the Craft and Micros do what they do best and concentrate on volume and market share.