It appears that music icon endorsements and branding isn’t all that its cracked up to be, especially in a market that heavily limits advertising and promotion. Supreme Cannabis (TSX: FIRE) announced this morning that it has terminated their exclusive consulting services agreement with Khalifa Kush Enterprises Canada on a mutual basis.
Khalifa Kush, sold under the KKE brand previously by Supreme, is lead by rapper Wiz Khalifa. Supreme originally entered the consulting arrangement with Khalifa in December 2018 to much fanfare, however product offerings under the brand KKE have been slim for several months already, with the company realizing an impairment last quarter in relation to the agreement – largely due to Health Canada’s current regulations with respect to product promotion.
The parties are reportedly partying ways “in order to re-focus their resources on opportunities in their respective businesses.” Meaning, the agreement wasn’t as profitable as either party expected it to be. Supreme has instead reaffirmed that it “will continue to address the ultra-premium category through its 7ACRES Craft Collective brand extension.”
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Supreme Cannabis last traded at $0.20 on the TSX.
Information for this analysis 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.
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