Supreme Cannabis Company Inc (OTCMKTS:SPRWF) has reduced operational expenses to boost growth in the near term. The company has reported revenues of $11.02 million (up 8%) in Q3 2020. Its year-on-year net revenues of recreational products have surged by 245%.
The average selling price of recreational products drops
The unveiling of innovative cannabis products at reduced rates to address new customers has impacted recreational sales. Other factors that impacted the average sale price of recreational products include the lowering of cannabis flower product prices to withstand the competition in some Canadian provinces. Supreme Cannabis has posted incremental revenues by introducing low priced products under brands such as Sugarleaf. Truverra brand medical cannabis products exports to Israel have helped the company to report higher wholesale revenues.
Health Canada grants nod to a premium cultivation facility
Health Canada has approved 440,000 Sq. Ft. facility of Supreme Cannabis for cultivation. The new facilities hold processing, secure storage, and grow rooms. Supreme Cannabis’s 7ACRES facility has obtained a final nod for cultivation on 30,000 Sq. Ft in March 2020. Therefore, the company now holds a space of 280,000 Sq. Ft. for vegetation, flowering, and propagation. The second bottling line of 7ACRES is also productionized in Q3 2020 and increasing the overall daily packaging capacity to 24,000 containers.
The dried flower products of 7ACRES account for a major chunk of recreational sales in Q3. Supreme Cannabis expects to generate significant revenues from the sale of cannabis flower products going forward. The company has also rolled out innovative products from its 7ACRES and expanded its product line beyond the flowers.
Supreme Cannabis’s division – 7ACRES has introduced an innovative and interactive site to help customers navigate and find the right strains nationwide. 7ACRES encourages customers to try its products and enjoy the delicious taste.
Vice President (Marketing and Sales), Nicole Sale said the company is thrilled to introduce interactive for customers and helping them to differentiate the enthralling taste of high-quality products offered by Supreme Cannabis. Taste plays a vital role in providing great cannabis experience to the users. The interactive tool of Supreme Cannabis helps the customers to get relevant information about products from home at this difficult time of coronavirus.