The Supreme Cannabis Company, Inc. (TSXV:FIRE), one of the Canadian marijuana stocks, announced a supply agreement with Tilray Inc. (NASDAQ:TLRY) valued at approximately C$12 million
SmallCapPower | October 4, 2018: The Supreme Cannabis Company, Inc. (TSXV:FIRE), one of the Canadian cannabis stocks, announced recently that the Company’s wholly-owned subsidiary, 7ACRES, has entered into a guaranteed supply agreement to provide dried cannabis to Tilray Canada Ltd., a subsidiary of Tilray Inc. (NASDAQ:TLRY). The contract value is estimated to be ~C$12 million for a 12-month period starting October 1, 2018.
Supreme Cannabis President John Fowler said, “We are excited to be entering into this agreement with Tilray, an organization – like Supreme Cannabis – that focuses on the end user and demands leading quality assurance standards. Tilray has built an industry-leading global medical distribution platform, which has resulted in robust demand for high quality cannabis products. We are happy to provide 7ACRES premium products alongside Tilray’s well-regarded and existing lineup to support medical patients around the world.”
Tilray is a leading cannabis company specializing in medical research, cultivation, processing and distribution. It is a GMP-certified medical cannabis producer supplying cannabis flower and extract products to several patients, physicians, pharmacies, hospitals, governments and researchers across the globe. It cultivates a wide range of strains to meet patient needs including indicas, sativas, hybrids, and CBD-rich varieties.
Supreme Cannabis also posted recently record Q4 2018 sales of $3.55 million, a 71% quarter-over-quarter increase, while its fiscal year 2018 revenue came in at $8.85 million. Supreme Cannabis has signed several wholesale supply agreements with companies such as Aurora Cannabis Inc. (TSX:ACB) and Namaste Technologies Inc. (TSXV:N).
In addition, on September 27, 2018, Supreme Cannabis announced a $90 million bought-deal financing of convertible debentures.
Supreme Cannabis Company stock trades at a market capitalization of C$564.83 million with a price-to-book ratio of 3.8x, whereas Tilray Inc has a market capitalization of $14.6 billion with a price-to-book ratio of 333.7x.
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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