Supreme Cannabis Announces Q1 2020 Financial Results and $90 million Credit Facility led by Bank of Montreal Supreme Cannabis achieves 122% year-over-year net revenue growth, Q1 2020 gross margin of 62%, and reports Adjusted EBITDA of $(4.9 million) Secures $90 million in corporate credit facilities with Bank of Montreal as Lead Arranger and Agent 7ACRES wins “Brand of the Year” at the Canadian Cannabis Awards Confirms forecasted net revenue for fiscal 2020 of between $150 million and $180 million, and positive Adjusted EBITDA for fiscal 2020
TORONTO, Nov. 14, 2019 /PRNewswire/ – The Supreme Cannabis Company, Inc. (“Supreme Cannabis” or the “Company”) (TSX: FIRE) (OTCQX: SPRWF) (FRA: 53S1) 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.
Navdeep Dhaliwal, CEO of Supreme Cannabis
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.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