Supreme Cannabis Q3 Revenue Plunges Ahead Of Merger With Canopy Growth

Author: Jelena Martinovic | May 14, 2021 09:41am

The Supreme Cannabis Company, Inc. (TSX:FIRE) (OTCQX:SPRWF) (FRA: 53S1) reported Thursday having earned $16.8 million in gross revenue in the third quarter of 2021, representing a sequential decrease of 22.5%.

Net revenue amounted to $13.6 million, including $11.7 million from recreational sales and $1.9 million in wholesale net revenue.

"The third quarter of 2021 was marked by significant headwinds across the industry due to nationwide lockdowns and restrictions associated with COVID-19 that resulted in softness in the market, which impacted our recreational revenue," Beena Goldenberg, president and CEO of Supreme Cannabis, said.

Q3 Financial Highlights

The gross margin, excluding fair value items, was $3.6 million, compared to $8.3 million in the prior period.
Operating expenses totaled $7.3 million versus $8.4 million in the second quarter of this fiscal year.
The net comprehensive loss amounted to $4 million versus $7.9 million in the quarter ended December 31. 2020.
Adjusted Gross Margin, non–GAAP measure, was $4.7 million compared to $9 million in the prior quarter.
Adjusted EBITDA, non–GAAP measure, came in positive at $460 000 versus a $3.64 million gain in the previous period.
As of March 31, the company had $65.5 million in cash.

In April, Canopy Growth Corporation (TSX:WEED) (NASDAQ:CGC) revealed it was willing to purchase the Toronto-based Supreme for approximately CA$435 million ($345.7 million).

Supreme expects to utilize Canopy's sales and distribution channels as well as its research and development capacities once the acquisition is closed.

Photo Source: CNW Group/The Supreme Cannabis Company, Inc.

Posted In: CGC SPRWF TSX:FIRE TSX:WEED