ABLE BC LOI is the third key agreement for Supreme Pharmaceuticals Inc. (CVE:FIRE) and provides exposure to ABLE’s more than 1,000 members
SmallCapPower | November 28, 2017: Supreme Pharmaceuticals Inc. (TSXV:FIRE) announced Friday that it has entered into a Letter of Intent (LOI) with the Alliance of Beverage Licensees (ABLE BC), the largest liquor industry association in British Columbia, for the supply of dried cannabis flower to ABLE’s adult-use consumers. Employing a unique wholesale model focused on the business-to-business (B2B) industry, Supreme Pharmaceuticals supplies bulk dried cannabis to legal retailers. In September 2017, the Company announced supply agreements with Aurora Cannabis and Emerald Health. The agreement with ABLE BC is the third key agreement for Supreme Pharmaceuticals and provides exposure to ABLE’s more than 1,000 members consisting of private liquor stores, pubs, bars, nightclubs and hotel liquor licensees. Post the news announcement, shares of Supreme Pharmaceuticals surged ~15% on Friday, ~17% on Monday, and is up 4% in early Tuesday trading at $2.16, for a three-day gain of about 40%.
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John Fowler, CEO of Supreme Pharmaceuticals said, “We are excited to work with ABLE BC and begin a dialogue with their 1,000 members. We feel strongly our focus on premium dried cannabis flower will be a differentiating factor for Supreme in the adult-use market, particularly in BC’s quality-focused consumer market.”
Jeff Guignard, Executive Director of ABLE BC, commented, “We are pleased to partner with Supreme as our first licensed producer and supplier for our retail members. British Columbians have a keen awareness and appreciation for exceptional cannabis, as such it was important to select an organization devoted to cultivating premium cannabis at-scale. We are confident Supreme’s product offerings are what our adult-use consumers are looking for.”
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. 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 Pharmaceuticals is yet to generate revenues and currently trades at a market capitalization of $427 million. The recent deals with Aurora and Emerald, and the latest LOI with ABLE BC, highlight the Company’s potential for signing many more clients, which could generate meaningful revenues over the coming quarters.
Disclosure: Neither the author nor any of the principals at SmallCapPower, or their family members, own shares in the company mentioned above.
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