Supreme Cannabis and KKE Canada Announce Mutual Termination of International Partnership
The Supreme Cannabis Company (OTCQX: SPRWF) and Khalifa Kush Enterprises Canada have mutually terminated their exclusive consulting services agreement originally established on December 6, 2018. This decision allows both companies to refocus on their respective business opportunities. Supreme Cannabis plans to enhance its ultra-premium product line, notably expanding distribution of the 7ACRES Craft Collective brand. Financially, the company reported an impairment of assets related to the KKE agreement, resulting in a carrying value of $nil due to impacts from Health Canada regulations.
- Expansion of 7ACRES Craft Collective brand into three new provinces: Alberta, Manitoba, and Saskatchewan.
- Impairment of assets from the KKE agreement, leading to a carrying value of $nil.
TORONTO, Aug. 14, 2020 /PRNewswire/ - The Supreme Cannabis Company, Inc. ("Supreme Cannabis") (TSX: FIRE) (OTCQX: SPRWF) (FRA: 53S1) and Khalifa Kush Enterprises Canada ULC ("KKE"), have mutually agreed to terminate their exclusive consulting services agreement ("the Agreement") entered into on December 6, 2018.
Supreme Cannabis and KKE amicably part ways in order to re-focus their resources on opportunities in their respective businesses. Supreme Cannabis will continue to address the ultra-premium category through its 7ACRES Craft Collective brand extension, which recently introduced Pink Kush to three new provinces, expanding distribution to Alberta, Manitoba and Saskatchewan. KKE will continue to build its leading premium brand in the U.S. while also pursuing international growth, developing and marketing unique cannabis related products.
Supreme Cannabis remains focused on compliance with all Health Canada regulations and direction. As disclosed in Supreme Cannabis' Q3 FY2020 Financial Statements, as at March 31, 2020, Supreme Cannabis recorded an impairment of assets related to the KKE agreement, resulting in a revised carrying value of $nil. The Company determined that the value of the agreement was negatively impacted by current Health Canada direction.
About Supreme Cannabis.
The Supreme Cannabis Company, Inc., (TSX: FIRE) (OTCQX: SPRWF) (FRA: 53S1), is a global diversified portfolio of distinct cannabis companies, products and brands. Since 2014, the Company has emerged as one of the world's fastest-growing, premium plant-driven lifestyle companies. Supreme Cannabis' portfolio of brands caters to diverse consumer experiences, with brands and products that address recreational, wellness, medicinal and new consumer preferences.
The Company's brand portfolio includes, 7ACRES, Blissco, Truverra, Sugarleaf and Hiway. Supreme Cannabis' brands are backed by a focused suite of world-class operating assets that serve key functions in the value chain, including, scaled cultivation, value-add processing, centralized manufacturing and product testing and R&D. Follow the Company on Instagram, Twitter, Facebook, LinkedIn and YouTube.
We simply grow better.
About KKE.
KKE was founded in 2018 and is the first expansion of KKE outside of the U.S. with plans for growth in additional countries all over the world.
KKE products were first commercialized in the U.S. in 2015. The company has achieved much success with the creation of high quality and highly sought-after products in the legalized marijuana market.
Forward-Looking Information.
Certain statements made in this press release may constitute "forward-looking information", "future oriented financial information" or "financial outlooks" (collectively, "forward-looking information") within the meaning of applicable securities laws. Forward-looking information may relate to anticipated events or results. Particularly, information regarding our expectations of future results, targets, performance achievements, prospects or opportunities is forward-looking information. Often, but not always, forward-looking statements can be identified by the use of forward-looking terminology such as "may", "will", "expect", "believe", "estimate", "plan", "could", "should", "would", "outlook", "forecast", "anticipate", "foresee", "continue" or the negative of these terms or variations of them or similar terminology. Forward-looking information is current as of the date it is made and is based on reasonable estimates and assumptions made by us at the relevant time in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we believe are appropriate and reasonable in the circumstances. However, we do not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable securities laws in Canada. There can be no assurance that such estimates and assumptions will prove to be correct.
Forward-looking information involves known and unknown risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information and no assurance can be given that such events will occur. For additional information with respect to certain of these assumptions, risks or factors, and risk factors relating to the Common Shares, reference should be made to the Prospectus Supplement and the Shelf Prospectus, the Company's annual information form dated September 17, 2019 for the year ended June 30, 2019 and material change reports filed with the Canadian securities regulatory authorities available at www.sedar.com, and such other continuous disclosure materials as may be filed from time to time by the Company with Canadian securities regulatory authorities.
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SOURCE The Supreme Cannabis Company, Inc.
FAQ
What does the termination of the agreement between Supreme Cannabis and KKE mean for SPRWF investors?
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