The Supreme Cannabis Company (TSXV:FIRE) smashed its previous records with the release of its financial and operating results for Q1 2019 on Wednesday (November 14), which saw a revenue spike of 229 percent from Q1 2018 to C$5.14 million.
Alongside the year-on-year growth was a 45 percent increase from the previous quarter, which came in at C$3.55 million. While the company’s losses were also up, hitting C$5.39 million versus Q1 2018’s C$2.18 million, Supreme attributed some of the positive results to its flagship cannabis brand, 7ACRES.
“Q1 2019 results are continued validation for the successful execution of our strategy for our 7ACRES business to establish a competitive advantage in quality driven regulated cultivation at scale,” Navdeep Dhaliwal, CEO of Supreme, said in the press release.
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“We’ve established valuable intellectual property and laid a strong foundation for 2019 by amassing coast-to-coast distribution for what we believe is the only premium High-End Cannabis™ grown at scale in the country. Moving forward, our branding and distribution for 7ACRES will accelerate, as we’re confident that consumers will further fuel our growth as they recognize the standard 7ACRES has set in the market for premium dried flower.”
The company saw a busy quarter through expansion plans and supply agreements; in early September, Supreme was approved for additional production capacity at its 7ACRES facility.
Health Canada greenlit the company’s plans to add 20,000 square feet of flowering rooms, bringing total capacity to 90,000 square feet and boosting annual production potential from 10,000 kilograms (kg) to 13,330 kg. The company expects the flowering rooms to be completed in December 2018.
Later that month, Supreme signed a 12-month guaranteed supply agreement for 7ACRES dried cannabis with Tilray (NASDAQ:TLRY). The deal, which has an estimated value of C$12 million, began as of October 1 to support medical cannabis patients in Canada.
Supreme also signed agreements with six Canadian provinces during this quarter to help supply the legal adult-use market following legalization.
Supreme shares were down 5.75 percent on the TSX Venture Exchange as of 12:15 p.m. EST on November 14, hitting C$1.64 a stock. On TradingView, shares of the company are currently ranked as a “Sell,” with 15 against, 9 “Neutral” and two as a “Buy.”
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Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Supreme Cannabis Company is a client of the Investing News Network. This article is not paid-for content.