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

Baselode Energy To Acquire Forum Energy: The Merger Of Equals Deal

TriStar Gold: The Revised Castelo de Sonhos Prefeasibility Study

Gold is Up 30%, But the Real Bull Market is Only Starting Now! | Adrian Day

Recommended

ESGold To Expand Mine Building At Montauban In Advance Of Gold & Silver Production

Goliath Resources Expands 2025 Drill Program To 60,000 Metres

Related News

Canopy Growth Shares Tank After Losses Widen By Over 1000% In Q1 2025

Canopy Growth (TSX: WEED) unveiled its financial results for the first quarter of fiscal year...

Friday, August 9, 2024, 10:35:34 AM

Canopy Growth To Raise Just $25 Million At 19% Discount To Friday’s Close

In a further sign of its struggles, Canopy Growth Corp (TSX: WEED) is again returning...

Monday, September 18, 2023, 09:01:51 AM

Bruce Linton: Will Cannabis Be Descheduled Under Biden? – The Daily Dive

Today on the Daily Dive, we get the opportunity to sit down with Bruce Linton,...

Tuesday, February 9, 2021, 01:30:00 PM

Series of Cannabis Producers Announce New Brand Offerings for Canadian and US Markets

This morning, a number of cannabis issuers announced developments on the branding front. With second...

Thursday, December 12, 2019, 09:53:43 AM

Canopy Growth Sees Canaccord Lower Target To $10 After Poor Q3 Results

On February 7th, Canopy Growth Corp (TSX: WEED) reported its fiscal third quarter financial results....

Sunday, February 13, 2022, 01:03:00 PM