Supreme Cannabis Says Sales Revenue Rose 245%, Establishes ATP Program

Retailer Supreme Cannabis Co. Inc. FIRE SPRWF disclosed Friday its third-quarter financial results. The Canada-based company generated $9.7 million in net revenue.

That's down by roughly 3% compared to the same quarter last year. However, compared to the second quarter of 2020, it increased quarter-over-quarter by more than 6%.

In the third quarter, the company posted gross revenue of $11 million, increasing year-over-year by roughly 7%.

Recreational net revenue for the third quarter was $5.7 million, staying consistent quarter-over-quarter.

Wholesale revenue accounted for 41% of net revenue, up by 4% compared to the previous quarter, reaching $4 million.

Its adjusted EBITDA declined around 12% to $11.7 million compared to the second quarter and was down year-over-year from $1.6 million.

The restructuring changes considering planned reductions of wages, facility costs, and sales, etc., are a result of a new operating model expected to become visible in the next quarter.

During the third quarter, Supreme's operational expenditures reduced by around 23% to $15.3 million, excluding restructuring charges.

The company recorded a cash balance of $23.1 million. It concluded the third quarter with $35 million of undrawn capacity, which accounted for 39% of the company's senior secured credit facilities.

The quarterly operational milestones include: Health Canada's approval for 7ACRES; the company's 440,000 square foot cultivation facility; licensing of 7ACRES processing spaces and laboratory facilities; and launching of new product formats and brand extensions including 7ACRES Craft Collective.

Supreme also secured additional financing by setting up an at-the-market equity program, which will occasionally allow the company to occasionally issue and sell as many as CA$9.75 million of common shares.

Two weeks ago, the company announced it has named Beena Goldenberg as its new president and CEO.