The Supreme Cannabis Company (OTCQX: SPRWF) (TSX: FIRE).

While still in its infancy, the cannabis industry has reached an inflection point where some clear separation is happening between companies. To use some old axioms, “The cream is rising to the top” and “The wheat is being separated from the chaff,” if you will.

The 7ACRES Team Hard at Work

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Companies with strong operations and core businesses are being positioned as dominant players with the fundamental numbers to prove it. For example, earlier this month, Aphria became the first major “pot stock” to record a quarterly profit.

The Supreme Cannabis Company (OTCQX: SPRWF) (TSX: FIRE) wrapped up its fiscal 2019 year on June 30, 2019 and recently disclosed expectations for record results from the 12 months through June while providing some impressive guidance for revenue during fiscal 2020.

Fiscal 2019 Highlights

Supreme Cannabis has five brands and subsidiaries in its portfolio and partnerships that have led Supreme to become one of the fastest growing, premium cannabis lifestyle companies in the world. The model is diverse and global, including the high-end, award-winning 7ACRES brand, Canadian Licensed Producer Blissco Cannabis Corp., plant genetics and cultivation IP company Cambium Plant Sciences, South African cannabis oil producer Medigrow Lesotho, and European CBD-focused investment platform Supreme Heights.

In July, Supreme said it was acquiring privately-held Truverra Inc. in an all-stock deal. The transaction was closed on Monday, bringing the international evidence based medical brand with Health Canada-licensed facility for research and development under Supreme’s umbrella with the other five entities.

Also on Monday, Supreme released limited preliminary estimated financial results for the fourth quarter of fiscal 2019 (ended June 30, 2019), saying complete audited results are expected to be made public on September 17, 2019.

For the quarter, management estimated net revenue of about $19 million net of excise tax. $19 million represents an improvement of approximately 449% over $3.55 million in the year prior quarter. Further, it is a jump of roughly 97% from $9.9 million in the third quarter of fiscal 2019.

It will be Supreme’s eighth straight quarter of sequential revenue growth. $19 million in sales during their latest quarter is indicative of the company scaling rapidly, considering revenue from the first three quarters of fiscal 2019 totaled about $21.3 million.

Estimates weren’t provided on profits, but management did convey that it expects positive adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for Q4 fiscal 2019.

“In a sector dominated by headlines, our measured approach to capital deployment and brand-building sets us apart. We believe our preliminary results demonstrate the strength of our business during an inflection point within the industry, path towards profitability and continued disciplined growth,” said Navdeep Dhaliwal, CEO of Supreme Cannabis, in Monday’s news release.