In this market news, The Supreme Cannabis Company, Inc. (TSXV:FIRE), one of the Canadian marijuana stocks, said will supply Tilray Inc. (NASDAQ:TLRY) with about C$2 million worth of dried cannabis
SmallCapPower | September 14, 2018: The Supreme Cannabis Company, Inc. (TSXV:FIRE) announced recently that its wholly-owned subsidiary, 7ACRES, has entered into a supply agreement with Tilray Canada Ltd., a subsidiary of Tilray Inc. (NASDAQ:TLRY), to supply dried cannabis. Tilray, one of the Canadian cannabis stocks, is a global leader in cannabis research, cultivation, processing and distribution, currently serving tens of thousands of patients in 11 countries spanning five continents. Tilray cultivates a wide range of strains to meet patient needs, including indicas, sativas, hybrids, and CBD-rich varieties. Medical cannabis is available in two primary forms: extracts and dried flower.
The estimated value of this supply agreement is about C$2 million. Dried cannabis provided to Tilray by 7ACRES will be used primarily to support medical cannabis patients in Canada, including Tilray’s robust patient population.
Supreme Cannabis CEO John Fowler said, “We are pleased to enter into this agreement with Tilray. As one of Canada’s first licensed producers, Tilray has been an industry leader in patient services and quality assurance. We believe this agreement demonstrates the quality of the 7ACRES dried flower, and the infrastructure, management and systems that support our brand positioning.”
Unlike other licensed cannabis producers focused on end consumers, Supreme Pharmaceuticals employs a one-of-a-kind wholesale model in Canada, focused on the business-to-business (B2B) industry. Through its greenhouse facility 7 ACRES, an ACMPR licensed cannabis producer with capacity to produce 50 million grams at full capacity, Supreme Pharmaceuticals is well positioned to supply bulk dried cannabis to legal retailers, such as ACMPR licensees. Operating inside a 342,000 sq. ft. Hybrid Greenhouse facility located in Kincardine, Ontario, 7 ACRES is the largest facility of its kind to grow with advanced HVAC and C02 enrichment using the full-spectrum sun, rather than the limited-spectrum lamps used by many ‘hybrid’ growers.
Supreme Cannabis trades at a market capitalization of $570.4 million with a price to book multiple of 3.95x.
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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