Supreme Cannabis Scales Up Production & Into Higher Margin Product Lines
Ryan Allway
March 27th, 2019
Exclusive, News, Top News
Canada’s cannabis industry continues to experience a supply shortage, according to Cowen & Co., which found that nearly half of all items remained out of stock on five provincial e-commerce websites. With the legalization of edibles expected in October, these supply shortages could increase as the industry broadens its customer base. These dynamics have created opportunities for licensed producers expanding their production capacity.
Supreme Cannabis Co. (TSX: FIRE) (OTCQX: SPRWF) (FRA: 53S1), a licensed producer with a 440,000 sq. ft. facility in Kincardine, Ontario, recently secured Health Canada’s approval for six additional flowering rooms. The new additions bring its total square footage up to 180,000 sq. ft. across 18 flowering rooms.
Ramping Up Production
Supreme Cannabis has 180,000 sq. ft. of production capacity following Health Canada’s approval, which translates to an estimated 26,250 kilograms per year—a 50 percent increase from its prior production estimates. The company hopes to further expand its production capacity to 50,000 kilograms per year, which would make it one of the largest licensed producers in the country during a critical supply shortage.
“With 18 of 25 flowering rooms at 7ACRES now approved by Health Canada, production space at our facility is near the finish line,” said Supreme Cannabis President and Founder John Fowler in the press release announcing the expansion. “With our multi-award winning 7ACRES brand now available in 8 out of 10 provinces, we look forward to completing construction of the facility so that cannabis enthusiasts coast to coast will be able to enjoy what we believe to be the highest quality cannabis grown at scale in the country.”
The company’s 7ACRES brand has received multiple cannabis industry awards, including “Brand of the Year” at the 2018 Canadian Cannabis Awards. In addition, the company’s provincial supply agreements consistently list the brand in the highest brand category available to recreational consumers. The company believes that premium categorizations are leading to higher profit margins than many of their competitors that target the low end of the market.
Launching Oil Products
Supreme Cannabis also announced that it expects to launch cannabis oil products into the recreational market beginning next month. Cannabis oil sales have been significantly outpacing cannabis flower sales as the market matures. According to Health Canada, licensed producers sold 4,455 kilograms of cannabis oil to consumers in September 2018 (the last reported data) compared to just 1,755 kilograms of cannabis flower.
“Premium oils require premium cannabis,” says Supreme Cannabis CEO Navdeep Dhaliwal. “Our formulation will leverage supercritical CO2 technology to produce a high quality, purified cannabis oil which we reformulate with the naturally occurring cannabis terpenes from our 7ACRES High-End Cannabis™. The result is a unique, plant-based cannabis oil that carries the award-winning qualities of our flower into an oil product for consumers looking for a premium cannabis oil experience.”
The company plans to initially ship oil products to select markets before expanding distribution of its cannabis oil line to additional provinces by June 2019. Each bottle will contain a proprietary blend of highly purified cannabis oils and terpenes derived from plants grown by 7ACRES, which differs from the bulk oils produced by many other cannabis oil manufacturers in Canada and around the world.
Looking Ahead
Supreme Cannabis Co. (TSX: FIRE) (OTCQX: SPRWF) (FRA: 53S1) is well positioned to capitalize on the growing demand for cannabis across Canada. With growing production capacity and near-term plans to enter the high-margin cannabis oil business, investors may want to take a closer look at the stock over the coming quarters.
For more information, visit the company’s website at www.supreme.ca.
Disclaimer
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: https://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.
About Ryan Allway
Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.
Search CannabisFN
Press Coverage
Psychedelics Index
Top Videos
Tim has over 22 years of investment experience as a portfolio manager, asset allocator, and capital markets professional across multiple asset classes, geographies, and platforms. Tim has built and operated two hedge funds, a broker dealer, and raised over $1Bn in capital for his combined businesses. Tim remains a recognized voice within the investment community […]
Alan Brochstein’s 420 Investor is the go-to community for investors to learn, explore, and profit from the marijuana companies. The main goal of 420 Investor is to provide real-time, objective information about the top marijuana companies in the market in order to help investors capitalize on cannabis.
Zenabis owns 660,000 square feet of high quality indoor facility space, as well as 2.1 million square feet of greenhouse space that will be dedicated to cannabis production once fully built-out.
The Supreme Cannabis Company is a Canadian publicly traded company committed to providing premium brands and products that proudly reflect its consumers, people and uniquely innovative culture.
Network Partners
About CFN Media Group
CFN Enterprises Inc. (OTCQB: CNFN) owns and operates CFN Media Group, the premier agency and financial media network reaching executives, entrepreneurs and consumers worldwide. Through its proprietary content creation, video library, and distribution via www.CannabisFN.com, CFN has built an extensive database of cannabis interest, assisting many of the world’s largest cannabis firms and CBD brands to build awareness and thrive. For more information, please visit www.cfnenterprisesinc.com.
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/.
Copyright © Accelerize Inc. · All Rights Reserved · Privacy Policy · Legal Disclaimer
