On Feb. 7, 2019 Supreme Cannabis (FIRE.V) announced that its 100% owned subsidiary, 7ACRES, has signed a recreational cannabis supply agreement with the New Brunswick Liquor Corporation and has been registered as a supplier to the Province of Saskatchewan.
7ACRES’ 340,000-square foot hybrid greenhouse is situated in Kincardine, Ontario. It combines the best practices in indoor cannabis cultivation with the power of the sun.
The result is indoor-quality buds with sun-grown characteristics.
Saskatchewan and New Brunswick become 7ACRES’ seventh and eighth provincial partners alongside British Columbia, Alberta, Manitoba, Ontario, Nova Scotia and PEI.
December 03, 2018 FIRE announced that 7ACRES was recognized as the Brand of the Year at the 2018 Canadian Cannabis Awards.
7ACRES was selected by a panel of industry professionals across a variety of sectors in the cannabis space. The award recognizes the enormous effort behind creating a brand, strategy, culture, image, and impact that resonates in the public consciousness.
Sales of cannabis are completed via Business-to-Business (B2B) transactions.
The B2B model allows 7ACRES to grow its revenue through high value bulk sales while maintaining its focus on cultivation, without the expense of patient acquisition and retention or retail order fulfillment and logistics.
Supreme’s future hinges on its ability to establish 7ACRES as a dominant brand.
Post legalisation, when we talk about brands we are no longer pondering the aesthetic quality of logos.
We are talking about:
- Sales numbers
- real-world consumer reaction
We’ll get into the sales numbers in a minute, but first – as 7ACRES expands into two more provinces, let’s examine the street-level reaction to the 7ACRES brand.
There is a slew on online reviews on the “WeedLoving.ca”.
We’ll drill down into one review of 7ACRES, “Jean Guy” by Ryan Roch, the proprietor of Lake City Cannabis – located in Chestermere, Alberta; just minutes east of Calgary.
“The trichomes coming off are glistening,” states Mr. Roch about 7ACRES, “You guys should be proud of this. I know you got a lot of love already, but I’m confirming it. If you can find this at your dispensary, grab it, don’t share it, don’t tell anyone you have it – except for me – invite me over – we’ll get into it together.”
Mr. Roch’s infectious enthusiasm is a perfect reflection of Chestermere – a quirky lake-side Alberta town of 20,732 people.
On the doorstep of the Rocky Mountains, Chestermere has 9,245 married people, only 570 divorcees, and 265 single people. The median household income is $134,000.
The Chestermere City Council recently dropped the 2019 municipal tax rate by 2%.
Mr. Roch, invites everyone “to come by and say Hi to the team at Lake City Cannabis.”
According to Financial Management Discussion & Analysis (MD&A), “Supreme is focused on developing and maintaining 7ACRES’ position as a leading brand of premium cannabis flowers at scale.
On November 14, 2018 Supreme released its financial and operating results for the three months ended September 30, 2018.
Q1 2019 Financial and Operating Highlights
- Revenue of $5.14 million
- 229% revenue increase from Q1 2018
- 45% revenue increase from the previous quarter
- Supply agreements with other Licensed Producers, including $14 million supply agreements with Tilray (NASDAQ: TLRY)
- Adult-use cannabis to consumers in six Canadian provinces.
- Added 50,000 square feet of licensed flowering room capacity
“We’re excited to announce that 7ACRES-branded products will be available for adult-use in eight Canadian provinces coast-to-coast,” stated Navdeep Dhaliwal, CEO of Supreme Cannabis. “We have made it a priority to expand 7ACRES’ domestic distribution so that more Canadians will be able to experience our High-End Cannabis products.”
Second quarter financial results for the three months ended December 31, 2018 will be published before markets open on February 12, 2019.
We will be covering that.
Full Disclosure: Supreme Cannabis is an Equity Guru marketing client, and we own the stock.