On September 5, 2018 Supreme Cannabis (FIRE.V) announced that it now has Health Canada approval to begin growing weed in 20,000 square feet of additional flowering rooms at its 7ACRES facility.

The additional flowering rooms will increase total potential flowering capacity to 90,000 square feet and, assuming a current yield, will bring 7ACRES’ annual production potential from 10,000kg to 13,330kg.

7ACRES’ hybrid greenhouse, situated in Kincardine, Ontario, combines the best practices in indoor cannabis cultivation with the power of the sun, resulting in “indoor-quality buds with sun-grown characteristics.”

In December 2016, long before Supreme was an Equity Guru client, Chris Parry had a few things to say about Supreme’s CEO John Fowler.

“I don’t normally suggest cannabis growing is a good long-term business plan,” wrote Parry, “Because I think it will become commoditized quickly, and then you’re basically farming.”

“But Fowler’s plan to become the farmer to the farmers, to get growing costs down low enough to be hard to match, to have sunlight thrown into the equation via his greenhouse roof, and to have a top-notch product – I can see that working out for a long time.”

Well played Mr. Parry: it has been working out.

Supreme has recently signed deals with the Province of Ontario and British Columbia while agreeing to supply recreational cannabis to the Nova Scotia Liquor Corporation and the PEI Cannabis Management Corporation beginning October 17, 2018.

According to a recent MD&A, “Supreme management is focused on developing and maintaining 7ACRES’ position as a leading brand of premium cannabis flowers at scale.”

The B2B model allow 7ACRES to grow its revenue through bulk sales while maintaining its focus on cultivation, without the expense and distraction of running a retail outfit.

“7ACRES is already one of the fastest scaling producers in the country,” stated Fowler. “This flowering room expansion continues to increase our capacity and improve our ability to meet the demand of cannabis enthusiasts upon legalization of adult use cannabis in Canada.”

On September 4, 2018, Equity Guru web-site servers huffed and puffed as over 12,000 investors read Chris Parry’s article, “Canopy Growth Corp (WEED.T) has $5 billion to buy something: What’s on the list?”

Under the category “Cheap Weed”:  Supreme Cannabis.

“The world is starting to figure out what John Fowler, Supreme’s CEO, has built here,” wrote Parry, “At a $380m market cap last week and with 340k sq ft of production space, Supreme was a screaming buy.”

“Now that Supreme started a marketing program with us, the company is wearing a brand new $578m market cap…now you’re going to need to pay what it’s actually worth.”

“I’m not going to tell you to buy Supreme stock, because that’s not my job.”

‘But what’s important to me right now is not who is buying the stock, but buying the product,” continued Parry, “The list of companies currently buying off Supreme is sick. If those companies approve, I imagine you will too.”

In this BTV interview, John Fowler talks about his background, the global weed market, and his vision for Supreme:

Profitability remains the measure of any company and the most significant metric for our shareholders,” confirmed Fowler in an excellent Pharma Board Interview.

Completion of flowering rooms at the 342,000-square foot 7ACRES facility remains on schedule for completion in December 2018.  With an annual production capacity expected to reach 50,000 kg once the 7ACRES facility is fully operational, the Company is committed to supplying premium-quality cannabis flower to the Canadian recreational market from coast-to-coast.

During 9 months ended March 31, 2018 Supreme generated revenues of $5.3 million, with a gross profit of $4.5 million

Full Disclosure: Supreme Cannabis is an Equity Guru marketing client, and we own stock.

Written By:

Lukas Kane

Lukas Kane was previously the CEO of a North American investment news syndicate. He was also the Communication Director for a consortium of publicly traded companies. A Senior Writer at Equity.Guru, Mr. Kane writes about mining, cannabis, energy, technology and biotech.

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