Supreme Cannabis Company Inc. (The) T.FIRE

Supreme covenants intact - likely hit 2mil+ ebita

[johnale]

As at January 22, 2021, approximately $62,914,000 of principal balance was outstanding under the Credit Facility. Obligations under the Credit Facility are secured by a first priority charge over the present and after-acquired property of Supreme and its material subsidiaries. Supreme is in compliance in all material respects with the terms and conditions of the Credit Facility and no breach thereunder has been waived by the affiliated lenders under such agreements since their execution. Except as disclosed in this Prospectus Supplement or the documents incorporated by reference herein, there has been no material change in the financial position of the Company since the execution of the Credit Agreement. The decision to offer the Units hereunder was made independently of the affiliated lenders and such lenders had no influence as to the determination of the terms of the Offering. The terms and conditions of the Offering were established through negotiations between the Company and the Lead Underwriter, on behalf of the Underwriters, without involvement of the affiliate lenders. The Underwriters will derive no direct benefit from the Offering other than their respective share of the Underwriters' Fee and the Broker Warrants. The proceeds of the Offering may be used to repay amounts owing under the Credit Facility, if the Company determines it is beneficial to do so.

[theTransporter]

Johnale - Your DD on this is much appreciated as this completely rules out their arm being forced to perform this raise. Where did you find this?  I assume this was burried deep in the Prospectus Supplement on SEDAR?   Based on your other post, they just want to have the cash on hand "just in case" of an opportunity that they can move quick on?  Otherwise they would

[Craiger02]

Trans, I completely agree with you. IF IF IF, there isn't something that they are immediately in need of the cash for, it would have been much nicer to see this raise done after the Q2 report. If Q2 is anticipated as being a strong quarter. This leads me to believe 1 of two things: A) Q2 is not going to be as good as we all hope B) that Beena is working on something now that cannot be

[johnale]

Trans - something is brewing - ya I looked at prospectus.  they have been plowing the ATM since mid Jan - 20mil shares -~4mil worth. All the sales are listed on prospectus.  62mil out on BMO? - they had 55mil drawn before - they drew another 7mil there.  Now 20mil raise? - that's over 30mil from sources?  and.... they were lean as giraffes neck, with no need

[maritimedreamer]

Well this is all interesting Johnale.....nice finds.....it is still a head scratcher why they did a raise if they had room on loc at bmo and access to an atm.... so something must be up..... of course you do not know like all of us but what r ur thoughts? 

[Mnadel01]

Don't you guys ever get tired of trying to figure out a company that isn't transparent.  I've never had this pan out once for me.  We'll see I guess 

[johnale]

Ya no idea - if I had to guess it would be some partnership where they have to put some capital into.  Why draw 7mil from BMO just to raise 20 to pay it back?  why raise 20 overnight? So quick?  Beena has been pinching pennies for months, and has already paid back part of the BMO line.  I think q2 is going to be bangers, the buisness is on really strong footing, and she

[Mnadel01]

So why not be more transparent with intent ? I can't believe I too am trapped in this mess lol

[OptGreen]

Agreed joh, appreciate the info as always value, hard to draw any clear cut answers to many issues/ questions at this time...but Beena will have those answers and we will be seeing most, if not all, the answers by or at FQ2/21 report release. Can't see anything but funding for growth/ expansion of some form, if this was for problems and/or to stay afloat at this stage we could expect selling

[johnale]

Updated prospectus -  shows they are allocating 9.4 mil to this strategic opportunity and growth initiatives.  the other half for balance sheet.  They also sold Scarborough for 1.5 mil too.  As part of the Company's strategy to leverage its core operating assets, the Company recently sold Canadian Clinical Cannabinoids Inc. to a private third party for gross proceeds

[Southybird]

Would buying LABs possibly be the play here? valuation is around 90millish so doesnt make much sense to me but i have been thinking about this as a possibility since the raise was announced a few days ago. Hoping its something more creative than Labs but just a though as they are exploring steategic alternatives at this time and there are some legacy international medical deals that could be

[maritimedreamer]

Why would they dissolve bliss co cannabis Corp....is it bc the brand is already under supreme so as stated just to reduce costs? This would still mean they are keeping the blissco brand and product offerings correct? This is all getting so wonky.....they better lay it out for us soon bc there are many ways to perceive these moves and with no information provided from them creates a negative

[Pedal2themetal7]

The only sure thing with this stock is the astonishing amount of shares alloted to management in December, and the SP below .20, anything else is a guessing game as usual. maybe some of you have but I've never experience anything like this. This is a nothing stock at the present time and always so secretive, the strategy doesn't make sense. IMHO A tech or pharmaceutical company with top

[johnale]

The competition in the sector is very high - maybe that's why.  southy - I thought zena, labs, or even Gtec sitting at 17mil valuation.  It's all speculation...  but with 20mil raise, 3mil over allotment, 4mil atm, 10mil warrents - 8mil draw down, 1.5mil sale,  thats - 46.5mil in cash potentially   

[VK400S]

Zena..hmm...

[Pedal2themetal7]

When Beena came onboard April 27 2020 I believe the stock was .29, almost a year later we're sitting at .17 with no idea where this company is heading. Most companies have faced major restructuring and some of them complete collapse, but numerous have almost reached 52 weeks highs, have instilled confidence within the investigating community, sharing the direction of the company while

[theTransporter]

Here here!!

[Method]

What if the stock was very overvalued then? From my perspective as a debenture holder she has done good things by extending the debt maturity profile and dramatically improving the balance sheet. I think those moves also made the equity more valuable even though the price is lower. The bonds at the time were trading at 25.5. That package is worth 51 now plus interest. The question, of

[johnale]

.45-.5 cents if we hit 14+mil rev and 2mil+Ebita. Keeping pace for 62+ mil rev for 2021.  I have to disagree with you slightly here.  I have 50/50 debt equity position in fire. Ultimately - while I like the extended maturity, I'd still rather have the big capital gain with a fast moving stock.  ceo can be measured on many different indicators, stock performance should be

[theTransporter]

Someone needs to send her a memo to reminder of that.

[Method]

The debs participate 1 for 1 with the stock above 28,5 cents plus the interest and accretion debentures but I understand what you mean.  My point was that they had to dilute to give the stock a shot at getting to 45-50 cents now.

[johnale]

If anything it definitely de-risks. But you're more the expert on analysis here. You've seen my take, am I wrong?   Realistically, based on comparables, ~3% market share in rec, +increasing wholesale/medical. Plus now a beefed up balance sheet - with some cash for beena to put some capital to use and accelerate our 'profitable growth'.  What gives?   prospectus

[brentkostaa]

Dont forget she's also doubled the outstanding share count in that time and generated sales no better than when she arrived. I cant agree with Vulcan that shes a "visionary" He must be smoking that Jean Guy. 

[vulcan123456789]

brent. the visionary ref was sarcasm... re read it i said it on a day we had a good news release and the stock still went down... many were complaining about news releases... and that we needed them to get share price up.. i said she was a visionary as she said only numbers will move us north not a bunch of news releases.. do you not understand sarcasm... nice that your thinking of me though

[brentkostaa]

I dont think you were being sarcastic. But if you were, my apologies. You got your news release. Over 100 mil shares added to the float. Somehow method and John thinks this is a good thing for the outlook of the company.    As i said all along, Beena is here to clean up the mess at the expense of the share holder. This is already sold in a backroom deal. WHat you see now is just

[Nearnorth1234]

is that Truverra that they sold??

[maritimedreamer]

No not truverra... esp since that is their brand for their shoppers and international sales...I believe it was for the Langley facility (old Packaging dfacility purchased by Nav).....I believe

[RetailInvestor9]

Hi, Do you know when this 7 million was drawn??