FIRE stock is trading sharply lower in Monday's trading session despite The Supreme Cannabis Company (TSX:FIRE) (OTCQX:SPRWF) announcing that its wholly-owned subsidiary, Blissco, has launched a new full-spectrum CBD oil, called Pūr Dew.
The cannabis industry has gone through a wide range of difficulties throughout the year so far, but that has not stopped some of the leading companies from expanding their businesses. In a new development today, it has emerged that Supreme's fully-owned subsidiary Blissco has launched Pūr Dew, a new CBD oil brand.
The launch of Pūr Dew CBD oil is strategically important for Supreme Cannabis because it diversifies its product portfolio significantly. The two other products that are sold by Supreme's subsidiaries at this point include KKE-made High THC cannabis oil and dry flower produced by 7ACRES.
The Pūr Dew CBD oil is made from unadulterated CBD oil and organic coconut oil. The product will be made available in a glass bottle, according to the press release from The Supreme Cannabis Company.
At the time of writing, FIRE stock is trading lower by 8.50% at $0.65.
Navdeep Dhaliwal, the Chief Executive Officer of Supreme, spoke about the product in the press release: “As Blissco's first CBD oil, Pūr Dew offers consumers full-spectrum CBD and USDA certified organic MCT coconut oil."
While this is definitely an important development, it should be noted that the company also released its fiscal first-quarter results for 2020 on Thursday.
The revenue generated by the company stood at $11.4 million, which reflected a 39.8% drop from the previous quarter. Supreme attributed this drop to mechanical failures in three of its cultivation rooms. On a positive note, The Supreme Cannabis Company managed to get a secured credit facility of $90 million.
Last but certainly not least, it should also be pointed out that that the company’s liabilities actually dropped during the quarter. Liabilities went down to $26.2 million from $30.6 million. This is a significantly important takeaway from the company’s quarterly results.
FIRE stock has slumped 55% so far this year due to broader weakness in the cannabis sector.
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