The legalization of cannabis in Canada and some states in the United States has given the opportunity to a range of licensed cannabis companies to grow their business and profile considerably. Among those, Canadian cannabis company – Supreme Cannabis Company (TSX:FIRE) (OTCQX:SPRWF) is certainly one of the more interesting ones, having created a name for itself for producing premium quality products. The advantage of dealing in premium cannabis is that the margins are much higher and in addition to that there is very little fear of the market being flooded with the product. Although the company’s production capabilities are not that high and projected production is pegged at 50,000 kilos this year, the high margin in the product is a significant benefit.
Premium Marijuana Consumers
One of the more important strategies that #SPRWF has adopted is to produce a whole range of products so that the small pool of premium marijuana consumers keep buying and boost the company’s revenues. The company’s sales have grown at a fast clip as well and in its last quarter, Supreme Cannabis recorded as year-on-year revenue jump of as much as 400%. The revenues in that last reported quarter stood at $10 million. Although the company’s losses did widen, it needs to be remembered, that it is the case with most companies in the industry. However, with a loss per share figure of $.02, the company had managed a 100% cut down in losses year on year.
Wiz Khalifa has teamed up with Supreme Cannabis
The company has also made a significant announcement recently and one that has the potential of propelling it in the big league. In a sensational development, famous American rapper, actor and musician, Wiz Khalifa has teamed up with Supreme Cannabis to launch a new line of cannabis oils. The product that is going to be called Khalifa Kush Enterprises Oils and it will be solely marketed in Canada as of now. This deal gives Supreme Cannabis the sort of exposure that any up and coming company craves for. In addition to that, the product is going to be available for purchase in Ontario and British Columbia this week only. At the start of July, it will be available in Alberta and from then on, it will launch in stages in other Canadian provinces through the rest of the year.
Acquired Cannabis Wellness Company Blissco
On the deal-making front, #SPRWF has been quite active as well and last month, the company acquired cannabis wellness company Blissco in an all-stock deal. The deal was valued at C$48 million and it is believed that the acquisition will further strengthen the company’s brand portfolio. Supreme Cannabis wants to grow into a premium category cannabis wellness company in the long term and this particular acquisition is definitely a step in the right direction.