Supreme Cannabis Amends Credit Facility

TORONTO, September 21, 2020 – The Supreme Cannabis Company, Inc. (“Supreme Cannabis” or the “Company”) (TSX: FIRE) (OTCQX: SPRWF) (FRA: 53S1) announces that it has entered into an agreement (the “Credit Facility Amendment”) with its lenders to amend the three-year term credit facility initially announced on November 14, 2019 (the “Credit Facility”).

Under the terms of the Credit Facility Amendment, the Company secured a deferral of its financial covenants related to fixed charge coverage ratio and leverage by 12 months to begin in the quarter ending March 31, 2022. New covenants regarding minimum liquidity and EBITDA will be tested in the interim. In addition, the Company has agreed to a 75 basis point increase in the applicable interest rate margin on the Credit Facility to reflect current industry dynamics.

The requirement for a minimum restricted cash balance has been removed and that balance has been used to repay a portion of the term loan outstanding. With the Credit Facility Amendment, the Credit Facility remains with a three-year term and has an amended term loan of $57.2 million and a revolving credit facility limit of $7.0 million.

“This amended facility is in line with our ongoing focus on right-sizing the business to align with our current strategy, and also proactively provides us improved runway to execute on our plan of being a profitable premium Cannabis CPG company,” said Beena Goldenberg, President and CEO of Supreme Cannabis. “It also demonstrates that our lenders continue to have confidence in the Supreme Cannabis business case.”

The disclosure in this news release relating to the Credit Facility and the Credit Facility Agreement is qualified in its entirety by the full text of such documents, copies of which are or will be filed on

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 most premium producers of recreational, wholesale and medical cannabis products.

Supreme Cannabis’ portfolio of brands caters to diverse consumer and patient experiences, with brands and products that address recreational, wellness, medical and new consumer preferences. The Company’s recreational brand portfolio includes, 7ACRES, Blissco, 7ACRES Craft Collective, Sugarleaf and Hiway. Supreme Cannabis addresses national and international medical cannabis opportunities through its premium Truverra brand.

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, automated packaging and product testing and R&D. Follow the Company on Instagram, Twitter, Facebook, LinkedIn and YouTube.

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 including, but not limited to: the Company’s ongoing focus on right-sizing the business and plan of being a profitable premium Cannabis CPG company; and other statements that are not historical facts. 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. To the extent any forward-looking information in this press release constitutes “future oriented financial information” or “financial outlooks”, within the meaning of applicable securities laws, the purpose of such information being provided is to demonstrate the potential of the Company and readers are cautioned that this information may not be appropriate for any other purpose. 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.

Many factors could cause our actual results, level of activity, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking information as discussed in the “Risk Factors” section of the Company’s Annual Information Form dated September 17, 2019 (“AIF”). A copy of the AIF and the Company’s other publicly filed documents can be accessed under the Company’s profile on the System for Electronic Document Analysis and Retrieval (“SEDAR”) at The Company cautions that the list of risk factors and uncertainties described in the AIF is not exhaustive and other factors could also adversely affect its results. Readers are urged to consider the risks, uncertainties and assumptions carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such information.

We simply grow better.

SOURCE: The Supreme Cannabis Company, Inc.

More Information.
Craig MacPhail, Investor Relations
Phone: 416-466-6265