Supreme Cannabis Continues To Achieve Milestones in 2019
April 22nd, 2019
App, Exclusive, News, Top Story
The Canadian cannabis industry is projected to reach C$22.6 billion over the coming years, according to Deloitte, driven by the legalization of adult-use cannabis last year and the upcoming legalization of edibles later this year. While many companies have focused on scaling up their production capacity at any cost, investors may want to shift focus to companies focused on disciplined growth and high-quality products as the industry matures.
The Supreme Cannabis Company Inc. (TSX: FIRE) (OTCQX: SPRWF) (FRA: 53S1) is well-known for its exceptional leadership team and ultra-premium cannabis products sold under the award-winning 7ACRES brand. Through its 440,000 sq. ft. facility in Kincardine, Ontario, the company produces uncompromised products that are consistently listed in the highest brand category available to recreational consumers.
Bringing Quality to Cannabis Oils
Altria Group’s $12.8 billion investment in JUUL for a mere 35% stake underscores the consumer shift from cigarettes to vape pens. The same concerns about smoke inhalation, offensive odors and indiscreet consumption are driving consumers from cannabis flower to cannabis oil. For example, Colorado cannabis flower sales fell from a 67% market share in 2014 to 44% market share by 2018.
Canada plans to legalize cannabis edibles and beverages later this year. By doing so, demand for cannabis oils could experience a significant increase. These products may be more palatable to consumers that are hesitant to smoke cannabis flower or use cannabis oils in vape pens. The new product categories could also create opportunities for higher profit margins as consumers may be willing to pay more for a unique experience.
Supreme Cannabis may not be a first-mover in the cannabis oil space, but its commitment to quality could make it a market leader. Using the ultra-premium cannabis grown at its 7ACRES facility, the company leverages supercritical CO2 technology to produce a high-quality, purified cannabis oil that carries the award-winning qualities of its flower into an oil product for consumers seeking a premium cannabis oil experience.
BoA / Merrill Lynch’s Buy Rating
The Supreme Cannabis Company Inc. (TSX: FIRE) was initiated with a Buy rating and C$2.50 per share price target by Bank of America Merrill Lynch on April 17, 2019. The price target reflects a 27.55% premium to the opening price on the day. Analyst Christopher Carey believes that the company’s strategy of selling to peers is sustainable over the next couple of years and its premium strategy could prove successful over the long run.
Supreme Cannabis operates a 440,000 sq. ft. cultivation facility in Kincardine, Ontario that’s designed to produce premium cannabis at scale. Currently, roughly 80% of its production goes to other licensed producers via the wholesale market, which commands attractive margins due to the shortfall in supply. Management anticipates reaching a 17,500 kilogram per year production run rate by the end of this year.
The analyst expects all Canadian cannabis companies to post strong growth over the next few years, citing the low base for comparison and strong demand from the newly created legal cannabis market. Over the long-term, the analyst notes that successful companies will have to develop and scale global strategies as Canadian supply catches up with demand in order to maintain strong growth rates enjoyed at the moment.
The Supreme Cannabis Company Inc. (TSX: FIRE) (OTCQX: SPRWF) (FRA: 53S1) is well positioned to grow over the coming quarters as it expands into cannabis oils and brings on new board members and management personnel. Investors may want to keep an eye on the stock given these two catalysts as the company continues to expand across both domestic and international cannabis markets with its ultra-premium products.
For more information, visit the company’s website at www.supreme.ca.
The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/
Follow Us on Social Media
About CFN Media
CFN Media (CannabisFN) is the leading creative agency and media network dedicated to legal cannabis. We help marijuana businesses attract investors, customers (B2B, B2C), capital, and media visibility. Private and public marijuana companies and brands in the US and Canada rely on CFN Media to grow and succeed.
CFN launched in June of 2013 to initially serve the growing universe of publicly traded marijuana companies across North America. Today, CFN Media is also the digital media choice for the emerging brands in the space.
Disclaimer: Matters discussed on this website contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, may from time-to-time have a position in the securities mentioned herein and will increase or decrease such positions without notice. The Information contains forward-looking statements, i.e. statements or discussions that constitute predictions, expectations, beliefs, plans, estimates, or projections as indicated by such words as "expects", "will", "anticipates", and "estimates"; therefore, you should proceed with extreme caution in relying upon such statements and conduct a full investigation of the Information and the Profiled Issuer as well as any such forward-looking statements. Any forward looking statements we make in the Information are limited to the time period in which they are made, and we do not undertake to update forward looking statements that may change at any time; The Information is presented only as a brief "snapshot" of the Profiled Issuer and should only be used, at most, and if at all, as a starting point for you to conduct a thorough investigation of the Profiled Issuer and its securities and to consult your financial, legal or other adviser(s) and avail yourself of the filings and information that may be accessed at www.sec.gov, www.pinksheets.com, www.otcmarkets.com or other electronic sources, including: (a) reviewing SEC periodic reports (Forms 10-Q and 10-K), reports of material events (Form 8-K), insider reports (Forms 3, 4, 5 and Schedule 13D); (b) reviewing Information and Disclosure Statements and unaudited financial reports filed with the Pink Sheets or www.otcmarkets.com; (c) obtaining and reviewing publicly available information contained in commonlyknown search engines such as Google; and (d) consulting investment guides at www.sec.gov and www.finra.com. You should always be cognizant that the Profiled Issuers may not be current in their reporting obligations with the SEC and OTCMarkets and/or have negative signs at www.otcmarkets.com (See section below titled "Risks Related to the Profiled Issuers, which provides additional information pertaining thereto). For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity-based compensation in the companies it writes about, or a combination of the two. For full disclosure, please visit: https://www.cannabisfn.com/legal-disclaimer/. A short time after we acquire the securities of the foregoing company, we may publish the (favorable) information about the issuer referenced above advising others, including you, to purchase; and while doing so, we may sell the securities we acquired. In addition, a third-party shareholder compensating us may sell his or her shares of the issuer while we are publishing favorable information about the issuer. Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: https://www.cannabisfn.com/legal-disclaimer/.