Supreme Cannabis Sees Revenues Decline 22.6% To $13.6 Million In Q3

Supreme Cannabis (TSX: FIRE) last night reported its third quarter 2021 financial results, reporting net revenues of $13.6 million, which amounted to a 22.6% quarter over quarter decrease in sales. The company managed to post a positive adjusted EBITDA figure however, of just $460.

Revenues for the quarter were down as a result of ongoing COVID-19 headwinds, as well as softness in the market – the same problem multiple licensed producers found themselves plagued with for this time period. Revenues of $13.6 million saw total production costs of $10.0 million, which includes $1.2 million in inventory impairments, resulting in gross margins before fair value adjustments of $3.6 million.

The company remained unprofitable at a basic level during the quarter however, with its $3.6 million in gross margins seeing operating expenses of $7.3 million. The largest expense was wage and benefits at $3.3 million, followed by amortization of property at $1.1 million and sales, marketing and business development costs of $1.1 million.

Other expenses meanwhile consisted of $2.1 million in financing expenses, which were offset by a $0.8 million gain on the disposal of property. The company as a result posted a net loss of $4.0 million for the quarter.

The company also saw its cash position climb to $65.5 million from $20.4 million over the course of the quarter, thanks in part to two financings it conducted. The company also revealed it has yet to sell any equity under the outstanding ATM program.

Additionally, the company indicated that it was not in compliance with certain debt covenants as of the end of the quarter related to EBITDA targets, which it subsequently received waivers for.

This is expected to be the final quarter reported by Supreme on a standalone basis, following the previously announced acquisition by Canopy Growth, with the transaction set to close at the end of June 2021 following a shareholder meeting on June 10.

Supreme Cannabis last traded at $0.295 on the TSX.


Information for this briefing was found via Sedar and Supreme Cannabis. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Goliath Resources Hits 10.60 g/t Gold Over 22.82 Metres, Highest Grade Results In Third Distinct Rock Package At Surebet Discovery

Four Countries Control the Fertilizer That Feeds the World | Sage Potash

$10,000 Gold Is Just A Question of Time | Florian Grummes

Recommended

Antimony Resources Drills 5.27% Sb Over 4.95 Metres In Latest Results

Nord Precious Metals Identifies 29 Veins At Castle East Following 3D Modeling

Related News

Canopy Growth Pays US$297.5 Million For Call Option To Acquire US-Based Wana Brands

Canopy Growth Corp (TSX: WEED) (NASDAQ: CGC) is looking to acquire additional US-based cannabis assets....

Thursday, October 14, 2021, 07:52:20 AM

Supreme Cannabis Expands International Shipments To Australia, Minimal Details Provided

Supreme Cannabis (TSX: FIRE) this morning proudly announced that it has completed its first shipment...

Friday, January 8, 2021, 08:27:53 AM

Supreme Cannabis Posts Q2 Revenue Of $18.3 Million, Net Loss Of $7.9 Million

The Supreme Cannabis Company (TSX: FIRE) this evening posted their second quarter 2021 financial results....

Thursday, February 11, 2021, 05:53:20 PM

Canopy Growth: Consensus Estimates For Q4 2021

Canopy Growth Corp (TSX: WEED) (NASDAQ: CGC) announced that they will be reporting their fiscal...

Monday, May 31, 2021, 04:44:00 PM

Canopy Growth: Klein’s Annual Compensation Includes Base Salary of US$975k

This week, Canopy Growth Corp (TSX: WEED) (NYSE: CGC) filed for the first time a...

Tuesday, June 2, 2020, 05:07:15 PM