The Supreme Cannabis Company (FIRE.T) has entered into an agreement to acquire all of Blissco Cannabis (BLIS.C) for an all-stock transaction valued at $48 million.
Blissco Cannabis is a Canadian wellness cannabis brand based in Langley, B.C. and a licensed processor, cultivator and distributor of premium cannabis.
They complement Supreme’s growing brand portfolio by adding a 18,000 square foot extraction, processing and cultivation facility and a pre-existing supply agreements in B.C., Alberta, Saskatchewan and New Brunswick.
“By merging with Supreme Cannabis, Blissco shareholders will benefit from the combined expertise of both companies in growing premium cannabis brands, producing and procuring high-quality inputs, commercializing new products, and ensuring regulatory compliance. Blissco shareholders will also benefit from Supreme Cannabis’ enhanced trading liquidity on the TSX and greater access to capital that will allow us to focus and accelerate Blissco’s premium wellness business,” Damian Kettlewell, CEO of Blissco.
Each Blissco share will be exchanged for $0.24 of a Supreme common share. The acquisition brings enhanced product offerings, access to infrastructure and greater consumer reach to shareholders. Blissco will join Supreme’s portfolio as Supreme’s health and wellness business.
The agreement will require 66% majority approval by Blissco shareholders either in person or by proxy at a special shareholders meeting. Supreme has already locked up 52% of Blissco shareholders, including Kettlewell, to vote in favour of the acquisition.
7ACRES boosts production
This latest acquisition adds to Supreme’s latest run of good news, as the company announced on Monday that Health Canada had approved their 50,000 square-foot build-out of its 7ACRES facility in Kincardine, Ontario.
This approval added an extra 230,000 square feet of production capacity, allowing 7ACRES to boost their production capacity 28% to roughly 33,580 kilograms.
Also, in Q3 2019, Supreme Cannabis’ wholly-owned subsidiary, 7ACRES, began supplying high-end cannabis flower to the province of New Brunswick and retailers in Saskatchewan, increasing distribution to eight provinces.
After which they signed a three year contract with MediPharm to supply a minimum of 1,000 kilograms of high quality cannabis trim per year for the extraction of high-terpene cannabis oil products, which would be marketed under the Supreme Cannabis name.
Supreme growth
Supreme launched Cambium Plant Sciences, their own cannabis genetics company, late last month to develop and license next generation cannabis plant genetics and cultivation IP.
“We believe genetics are the foundation of proprietary cannabis products in the long term. Cambium will develop cultivars that benefit our in-house brands, as well as our domestic and global cultivation and manufacturing partners
,” said Navdeep Dhaliwal, chief executive officer of Supreme.
Supreme invested $14 million to develop Cambium’s 34,000 square foot cannabis research facility devoted to the development and licensing of next generation cannabis plant genetics and cultivation IP.
Shares rose today by $0.02 to close at $1.88.
Currently Supreme has 292,788,389 issued and outstanding shares with a market cap of $544 million.
—Joseph Morton
Full disclosure: Supreme Cannabis is an Equity.Guru marketing client.
