Seattle, Washington–(Newsfile Corp. – July 22, 2019) – CFN Media Group (“CFN Media”), the leading agency and financial media network dedicated to the North American cannabis industry announces publication of an article discussing Supreme Cannabis (TSX:FIRE.TO) (OTCQX:SPRWF).
The old Aesop axiom advises to be vigilant, for you can be known by the company you keep. If that’s the case, then Supreme Cannabis 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 , 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, Aphria Inc. and Organigram Holdings Inc., 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.
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