The Supreme Cannabis Company (TSXV:FIRE) recently received approval for an additional 30,000 sq. ft. flowering rooms at 7ACRES
SmallCapPower | July 16, 2018: The Supreme Cannabis Company (TSXV:FIRE) announced recently a significant development in its plans to penetrate the cannabis market. On July 11, 2018, it received approval for an additional 30,000 sq. ft. flowering rooms at 7ACRES by Health Canada. The approval is expected to double the annual production from 5,000 kg to 10,000 kg. FIRE uses advanced proprietary technical know-how for cultivation and expects an annual production 50,000 kg once the 342,000-square foot 7ACRES facility is fully operation by December 2018.
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Supreme Cannabis CEO John Fowler said, “Since receiving its license just over 24 months ago, 7ACRES has demonstrated that it is one of the fastest scaling producers in the industry, having added more than 60,000 square feet of flowering capacity over this brief period.”
Additionally, Supreme Cannabis announced 7ACRES has entered into a memorandum of understanding (MOU) with the British Columbia Liquor Distribution Board (BCLDB) to supply recreational cannabis to BC’s private cannabis retailers. Under the agreement, the Company will supply British Columbia Liquor Distribution Board with 553 kg of cannabis over 12 months. This is a positive affirmation for the Company’s product and quality. All 7ACRES product will be listed in the top-tier brand category in BC – consistent with other provincial supply agreements 7ACRES has signed. This agreement makes British Columbia the third provincial recreational partner for the Company along with Manitoba and Alberta.
Supreme Cannabis CEO John Fowler added, “British Columbia is a bellwether province for the recreational cannabis space – we consider it one of the most informed and discerning consumer markets for cannabis in the country. It is a testament to our brand, culture and our people that we will be listed in the highest brand category in BC.”
Supreme Cannabis is engaged in the production and sale of medical cannabis. The Company is a cultivator and distributor of sun-grown cannabis through its wholly-owned subsidiary, 7ACRES. 7ACRES aims to provide a premium-quality product as well as excellent customer service. 7ACRES brand success has been reflected in provincial supply agreements, where 7ACRES’ product is consistently listed in the highest brand category available to recreational consumers.
Supreme Cannabis Company trades at a market capitalization of $411.89 million with price to book multiple of 2.8x.
Disclosure: Neither the author nor his family own shares in the company mentioned above.
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