Supreme Cannabis release its financial and operating results for the first quarter 2020
The Supreme Cannabis Company, Inc announced the release of its financial and operating results for the first quarter ended September 30, 2019.
The Company also announced that it has entered into a credit agreement with Bank of Montreal ("BMO") as Lead Arranger and Agent on behalf of a group of lenders (collectively, the "Lenders") for $90 million of senior secured credit facilities consisting of a term loan of $70 million and a revolving credit facility of $20 million (the "Credit Facility").
"In the first quarter of fiscal 2020, we operated through challenging market conditions while integrating new businesses and product planning for the second half of the year.
Overall, our financial results reflect the inherent difficulties of operating in a new regulated industry and the transitionary period we are in as we evolve from a predominantly wholesale business to a leading cannabis CPG company in Canada.
Despite these challenges, in the quarter we improved production operations to generate industry-leading margins of 62% and made the strategic decisions necessary to position our businesses for meaningful revenue generation from flower, flower convenience products and select derivative products in the remainder of fiscal 2020," said Navdeep Dhaliwal, CEO of Supreme Cannabis.
"The closing of up to $90 million in credit facilities from tier one lenders is a significant achievement that positions the Company to execute on our strategy and prudently grow the business in fiscal 2020 and beyond."
"In connection with the Credit Facility, the Company underwent a rigorous due diligence process to secure this favourable, non-dilutive financing from leading financial institutions," continued Mr. Dhaliwal.
"There is only a select group of Canadian federal license holders who have obtained such financing over the past year. In the current challenging operating environment, our ability to secure credit facilities with tier one lenders speaks to the strength of our management, business and operations, and our ability to deliver strong financial results."
To learn more about Supreme Cannabis visit their Company HQ here.
Disclaimer: Past performance is not an indicator of future performance.
Disclaimer: past performance is not an indicator of future performance
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