The Supreme Cannabis Company 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.