Yet another recent reawakening of a former momentum player in the cannabis patch is Supreme Cannabis Company Inc (OTCMKTS:SPRWF). Shares of the stock have been on fire over the past two weeks. Helping to drive that story, the company just announced that its wholly-owned subsidiary, 7ACRES, has obtained Health Canada approval to begin cultivating approximately 30,000 sqft of additional flowering rooms at its facility in Kincardine, Ontario.
According to the release, “This raises the total flowering room space from 90,000 sqft to 120,000 sqft and 7ACRES’ annual production capacity estimate increases from approximately 13,300kg to 17,500kg. With further production efficiencies and the completion and licensing of all 25 flowering rooms, the potential capacity of the 7ACRES facility is anticipated to reach approximately 50,000kg per year.”
Supreme Cannabis Company Inc (OTCMKTS:SPRWF) trumpets itself as a Canadian publicly traded company committed to providing premium brands and products that proudly reflect its consumers, people, and uniquely innovative culture. The Company’s portfolio includes its wholly-owned subsidiary and flagship brand 7ACRES.
7ACRES is a federally licensed producer of medical cannabis operating inside a 342,000-square-foot facility in Kincardine, Ontario. 7ACRES is dedicated to providing consumers with a premium-quality product that recognizes its customers are informed, discerning and value a brand and culture that aligns with their principles. 7ACRES brand success has been reflected in provincial supply agreements, where 7ACRES’ product is consistently listed in the highest brand category available to recreational consumers.
The Company’s growing portfolio also includes an equity investment and long-term global distribution partnership with Lesotho-based Medigrow for the exporting of medical-grade cannabis oil.
According to company materials, “the company focuses on the production and sale of medical marijuana in Canada. The company was formerly known as Supreme Resources Ltd. and changed its name to Supreme Pharmaceuticals Inc. in February 2014. Supreme Pharmaceuticals Inc. was incorporated in 1979 and is headquartered in Vancouver, Canada. The Supreme Cannabis Company has consistently set the standard for innovation in the sector, including the design of growing facilities and development of operational excellence metrics. We are confident that together with our flagship brand, proprietary technology and products, truly unique culture, and industry-leading team, we will deliver consistent long-term value creation to our shareholders.”
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As noted above, SPRWF just announced that its wholly-owned subsidiary, 7ACRES, has obtained Health Canada approval to begin cultivating approximately 30,000 sqft of additional flowering rooms at its facility in Kincardine, Ontario.
Recent action has seen 55% piled on for shareholders of the stock during the trailing month. Moreover, the name has witnessed a pop in interest, as transaction volume levels have recently pushed just shy of 120% over what the stock has registered over the longer term.
“Scaling our 7ACRES facility is a top priority and today’s announcement is another significant step forward towards completing that goal,” said John Fowler, President and Founder of Supreme Cannabis. “7ACRES-branded dried flower has received enthusiastic reviews from consumers across Canada. With this additional production capacity, we’ll be able to better satisfy the demand from cannabis enthusiasts coast-to-coast.”
At this time, carrying a capital value in the market of $503.74M, SPRWF has a significant war chest ($31.2M) of cash on the books, which must be weighed relative to about $23.4M in total current liabilities. One should also note that debt has been growing over recent quarters. SPRWF is pulling in trailing 12-month revenues of $12.4M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 229.5%. We will update the story again as soon as developments transpire. Sign-up for continuing coverage on shares of $SPRWF stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $SPRWF, either long or short, and we have not been compensated for this article.