Supreme Cannabis Q3 Revenue Plunges Ahead Of Merger With Canopy Growth

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.