FIRE stock is flying on Wednesday after The Supreme Cannabis Company (TSX:FIRE) (OTCQX:SPRWF) reported positive adjusted EBITDA in the fourth quarter.
Revenue Soars 90% QoQ
There have been numerous troubles in the cannabis sector over the course of the past few months, and some companies have recorded disappointing results over recent weeks. However, the same cannot be said about The Supreme Cannabis Company Inc, which delivered impressive results in its fourth quarter and the full-year results. In the fourth quarter, the company generated revenues of $19 million, which reflects a sequential rise of a handsome 90%. On the other hand, the revenues for fiscal 2019 stood at $41.8 million, which is 370% higher than the revenues in fiscal 2018. It goes without saying that the company has performed admirably.
In addition to that, in the latest quarter, the company’s EBIDTA came in at a positive $3.2 million, which is again a marked improvement from the negative EBIDTA of $1.6 million in the prior-year period. Supreme also provided its guidance for fiscal 2020. The company announced that it expects net revenues during that period to be in the $150 million to $180 million range. Moreover, positive EBITDA has also been projected by the company.
FIRE stock is now up 6% at $1.45. On the OTC market, SPRWF stock is up about 3% at $1.11.
The company is fast becoming a name to be reckoned with in the premium cannabis space, and experts believe that by 2020, the company might be in a position to challenge some of the bigger companies in the industry. Now, Supreme’s production capability is currently that of 50,000 kilos a year, and companies like Cronos Group (TSX:CRON) (NASDAQ:CRON) produce much more. However, in this regard, it needs to be remembered that The Supreme Cannabis Company is only engaged in the production of premium quality cannabis.
On the other hand, most other growers are primarily engaged in producing average quality marijuana. In addition to its work as a producer of premium marijuana, Supreme has also been extremely active in the cannabis derivatives space. It is currently a supplier for PAX Labs, the vape maker, and has also signed a contract with MediPharm Labs (TSX:LABS) (OTCQX:MEDIF) over extraction services.
FIRE stock has gained over 20% over the past one month.
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