Seattle, Washington--(Newsfile Corp. - August 1, 2019) - CFN Media Group ("CFN Media"), the leading agency and financial media network dedicated to the North American cannabis industry announces publication of an article discussing The Supreme Cannabis Co.'s (TSX: FIRE) (OTCQX: SPRWF) (FSE: 53S1) recent merger with Blissco.
The cannabis industry is quickly moving through a well-known cycle for emerging markets. Like Google in the tech industry, early market entrants that have become successful in a given subset of the fragmented market are starting to look to mergers and acquisitions to expand their geographic and product footprint. The result is often a mature industry with two or three companies capturing 70 to 90 percent of the market share.
The most famous example is Canopy Growth Corp.'s $3.4 billion deal with Acreage Holdings Inc.. In exchange for a $300 million upfront commitment, Canopy Growth bought the right to acquire the U.S. market leader when cannabis legalization occurs on a federal level. The combined company could become an overnight leading producer across all of North America.
CFN Media takes a look at how The Supreme Cannabis Co.'s (TSX: FIRE) (OTCQX: SPRWF) (FSE: 53S1) recent merger with Blissco fits into this same model and what investors can look forward to next.
Expanding into Wellness
Supreme Cannabis' merger with Blissco was more than a move to increase its revenue and market capitalization-it was a strategic acquisition that accelerates its entry into the lucrative wellness subset of the market with an established brand. Founded in 2013, Blissco has become Canada's leading cannabis wellness brand with a 12,000 sq. ft., state-of-the-art extraction, processing and cultivation facility located in Vancouver.
Figure 1: 12,000 sq. ft., state-of-the-art extraction, processing and cultivation facility located in Vancouver
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Prior to the merger, Blissco was awarded a comprehensive sales license from Health Canada to sell bulk cannabis and pre-packaged, labeled and tested cannabis products to medical patients and provinces. The company had signed supply agreements with British Columbia, Saskatchewan, New Brunswick, and Alberta, as well as Pharmadrug in Germany. It also submitted a license amendment to Health Canada to allow the sale of oil.
Blissco's focus on ultra-premium cannabis products is well-aligned with Supreme's similar focus on high-quality flower and pre-rolls, but unlike Supreme, it has been extracting cannabis oil since August of 2018. With its EU GMP-compliant facility, Supreme can immediately leverage its high-quality flower inputs to create near-term, large-scale extraction operations capable of serving multiple brands under its growing umbrella.
Focusing on Growth Ahead
Supreme Cannabis plans to acquire Truverra, a global medical cannabis brand, to further expand its footprint in the wellness space. Located in the Netherlands, Truverra sells a broad portfolio of hemp-based CBD products across select European markets. These products contain a carefully measured quantity of clean and pure CBD oil drawn from whole plant hemp extract that meets European standards.
In order to support this next phase of growth, the company appointed Ash Rajendra as Chief Information Officer and Valerie Rother as vice president of human capital and talent development. Both of these individuals bring a wealth of experience and knowledge necessary to help the company manage these two key acquisitions, as well as pave the way for growth in the nascent cannabis industry.
The company also continues to adopt governance best practices at the board level. Mr. John Fowler resigned from the Board of Directors in order to make room for more independent directors. Mr. Fowler will continue to serve as Chief Advocacy Officer & Managing Director of Flower and Concentrates while the board begins a search for a new independent board member that will bring diverse background, experience and operating knowledge.
Supreme Cannabis Co.'s (TSX: FIRE) (OTCQX: SPRWF) (FSE: 53S1) acquisition of two wellness brands marks a move to stake out a key subset of the industry. In addition to adding scale to its operations, the acquisitions provide valuable new brands and extraction capabilities that could help drive long-term shareholder value. Investors interested in the wellness side of the industry may want to take a closer look at the company following these catalysts.
For more information, visit the company's website at www.supreme.ca.
Please follow the link to read the full article on CFN Media: http://bit.ly/315n9F2
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