Supreme Cannabis: At the Epicenter of Premium Products
July 22nd, 2019
App, Exclusive, News, Top News
The old Aesop axiom advises to be vigilant, for you can be known by the company that you keep. If that’s the case, then Supreme Cannabis (TSX:FIRE) (OTCQX:SPRWF) must feel pretty good, as it has surrounded itself with household names in the burgeoning cannabis industry, albeit in-house, through partnerships or association.
Supreme is not just a moniker; it is the culture to deliver only premium products on which the business model is built that are synonymous with Supreme’s brands across the world. These brands include the multi-award winning 7ACRES, R&D experts Cambium Plant Sciences (a spinoff of 7ACRES genetics business), Medigrow Lesotho, the multi-licensed Blissco Cannabis Corp. and the recently unveiled Supreme Heights brand.
Supreme is in the process of completing the acquisition of Blissco (CSE: BLIS) (OTCQB: HSTRF), which is expected this summer now that BLIS shareholders nearly unanimously approved the C$48 million merger.
In aggregate, Supreme employs more than 1,000 people across these brands. Each has a strategic purpose that gives Supreme a dominant presence in Canada, South Africa and, with the launch of Supreme Heights, the U.K. and Europe.
Using California, the world’s biggest legal marijuana market, as a model, Supreme is able to address 86% of the market (flower, vaporizer, concentrates, pre-roll, other) with its offerings.
If One Acquisition is Good, Then Two is Better
As the Blissco acquisition is wrapped up, Supreme on Wednesday made a move to accelerate its European growth and extract business in Canada.
Supreme agreed to acquire 100% of privately-held Truverra Inc. via a three-cornered amalgamation between Truverra, Supreme and a wholly-owned Supreme subsidiary. The deal values Truverra at $20.0 million, which will be paid through 14.7 million shares of FIRE.
With the acquisition, Supreme is adding two key assets to its operations. The first is Truverra subsidiary Canadian Clinical Cannabinoids Inc. (CCC), which operates a 5,000 square-foot, state-of-the-art Health Canada-licensed facility in Scarborough, Ontario. The plan is to repurpose the facility to produce high-quality cannabis extracts, including vaping liquids and concentrates, from Supreme’s premium cannabis.
The second is Truverra’s Netherlands-based European subsidiary, called Truverra Europe. The company currently sells a broad portfolio of hemp-based CBD products into select European markets.
The Flagship: 7ACRES
Supreme is not interested in the ultra-competitive market of low-dollar cannabis strains that resulted in 74% of SKUs sold in Ontario priced below C$10 per gram within eight months of adult legalization in Canada. Management recognizes that 85% of cannabis enthusiasts will not purchase products that have subpar scent and that 63% will reject product that does not pass their visual inspection. The company is about catering to the premium products markets.
It has taken years of meticulous crafting and expertise in the cannabinoids, terpenes, flavonoids, proteins and amino acids found in cannabis for Supreme to build its 7ACRES product line. To the end, the company has successfully been able to introduce new strains of 7ACRES products at increasing prices. Next month, 7ACRES will be launching its new Jack Haze strain, which is expected to fetch $52.99 for 3.5 grams.
In fact, the diversity of 7ACRES products enable the company to cross multiple cannabis market segments, including pre-rolls, concentrates and, of course, flowers.
Partners and Associates
While Blissco will handle creating topical products for the expansive wellness industry, 7ACRES premium name has created multiple inroads for Supreme that position it amongst the cannabis elite.
For starters, the company has partnered with hip-hop superstar Whiz Khalifa and his brand KKE (an acronym for Khalifa Kush Enterprises), a US-based premium cannabis production and branding company. Through the exclusive partnership, high-in THC KKE oils were introduced to the Canadian market in June, with future plans to introduce pre-rolls and flowers in Canada and worldwide.
A recent partnership with Pax Labs aligns Supreme for its first move into the lucrative vaporizer market. Pax is recognized as a premium vaporizer company, with more than 1.5 million devices sold worldwide, including an established position as the best-selling premium pen-and-pod system in the United States.
When you’re a leader like Pax, you have the luxury to pick from the cream of the crop for partners. To date, the company has signed cannabis supply agreements for its Pax “Era” vaporizers with only Aurora Cannabis (NYSE: ACB)(TSX: ACB), Aphria Inc. (TSX: APHA) (NYSE: APHA) and Organigram Holdings Inc. (NASDAQ: OGI), putting Supreme Cannabis in quality company with their new supply agreement with Pax.
Per the agreement, 7ACRES-branded vaporizer oil will be sold exclusively in Era-compatible pods throughout Canada. Furthermore, the accord allows for 7ACRES to develop addition vape oil products exclusively for the Pax Era. The deal distinguishes Supreme from its competitors, as 7ACRES ensured that its products remain locked to only the crème de la crème in cannabis products by only supplying the Pax with its oil pods. This is particularly important considering that 39% of Canadian vape users identify as connoisseurs.
Striking the agreement now also leaves 7ACRES in a prime position ahead of new Health Canada regulations that go into effect later this year allowing for 1000 milligrams of tetrahydrocannabinol (THC) per consumer package.
The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/
This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.
Follow Us on Social Media
About CFN Media Group
CFN Media Group (CannabisFN), owned and operated by CFN Enterprises Inc. (OTCQB: CNFN), is the leading creative agency and media network dedicated to legal cannabis. We help marijuana businesses attract investors, customers (B2B, B2C), capital, and media visibility. Private and public marijuana companies and brands in the US and Canada rely on CFN Media to grow and succeed.
CFN launched in June of 2013 to initially serve the growing universe of publicly traded marijuana companies across North America. Today, CFN Media is also the digital media choice for the emerging brands in the space.
Disclaimer: Matters discussed on this website contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time-to-time have a position in the securities mentioned herein and will increase or decrease such positions without notice. The Information contains forward-looking statements, i.e. statements or discussions that constitute predictions, expectations, beliefs, plans, estimates, or projections as indicated by such words as "expects", "will", "anticipates", and "estimates"; therefore, you should proceed with extreme caution in relying upon such statements and conduct a full investigation of the Information and the Profiled Issuer as well as any such forward-looking statements. Any forward looking statements we make in the Information are limited to the time period in which they are made, and we do not undertake to update forward looking statements that may change at any time; The Information is presented only as a brief "snapshot" of the Profiled Issuer and should only be used, at most, and if at all, as a starting point for you to conduct a thorough investigation of the Profiled Issuer and its securities and to consult your financial, legal or other adviser(s) and avail yourself of the filings and information that may be accessed at www.sec.gov, www.pinksheets.com, www.otcmarkets.com or other electronic sources, including: (a) reviewing SEC periodic reports (Forms 10-Q and 10-K), reports of material events (Form 8-K), insider reports (Forms 3, 4, 5 and Schedule 13D); (b) reviewing Information and Disclosure Statements and unaudited financial reports filed with the Pink Sheets or www.otcmarkets.com; (c) obtaining and reviewing publicly available information contained in commonlyknown search engines such as Google; and (d) consulting investment guides at www.sec.gov and www.finra.com. You should always be cognizant that the Profiled Issuers may not be current in their reporting obligations with the SEC and OTCMarkets and/or have negative signs at www.otcmarkets.com (See section below titled "Risks Related to the Profiled Issuers, which provides additional information pertaining thereto). For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity-based compensation in the companies it writes about, or a combination of the two. For full disclosure, please visit: https://www.cannabisfn.com/legal-disclaimer/. A short time after we acquire the securities of the foregoing company, we may publish the (favorable) information about the issuer referenced above advising others, including you, to purchase; and while doing so, we may sell the securities we acquired. In addition, a third-party shareholder compensating us may sell his or her shares of the issuer while we are publishing favorable information about the issuer. Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: https://www.cannabisfn.com/legal-disclaimer/.