SUPREME PHARMACEUT COM NPV (OTCMKTS:SPRWF) Has Large Potential Upside On Near Term Seller Appoval

SUPREME PHARMACEUT COM NPV (OTCMKTS:SPRWF) makes for an interesting cannabis story right now. The Canadian company just picked up a flurry of volume, and in turn, a halting of its common stock, based on an error publication of information regarding its legal status in the space. The legal status in question is set to determine near term sentient towards Supreme, for reasons we will get into in a little more detail shortly, and the misprint has lead to a raft of speculation as to what it means, if anything, near term. Speculation aside, it has certainly drawn a lot of attention to the company, both domestically in Canada and from the US, and so to the extent that it's served as some free investor relations activity, it's a real win for Supreme and its shareholders.Sticking with the speculative side of things, however, is there anything that can be gleaned from the misprint? And if not, what might the extra attention mean for Supreme going forward?Let's take a look.Unlike many of the companies we've discussed across the last few weeks in this space, Supreme is Canada based, headquartered in Vancouver, and it focuses solely on medical marijuana. The story in a nutshell is this: the company owns a facility in a place called Kincardine, which is a lake coastal town around 3 hours north of Toronto. The facility is owned and operated by a wholly owned Supreme subsidiary called 7ACRES, and as the name of the company suggests, it's a greenhouse with a total 7 acres' worth of growable ground space.7ACRES picked up a cultivation license earlier in the year, and is a Federally licensed cannabis producer, but that's only half the battle. If the company wants to dry and sell its harvest, it needs a seller's license. It's application for this license is with Health Canada (the Canadian equivalent of the FDA) right now, and a decision is expected before the close of this year.This is what the misprint related to. It announced that Supreme was approved as a seller of its dried harvest, which, as it turns out, it's not. At least not yet. There's an easy speculative route that leads to the suggestion that this print is only an error in timing, not in fact, and that it points to a positive decision near term.As a quick note, the mistake was published as AMCANN, which is the old brand name for the newly named 7ACRES sub.Whatever the situation, an approval would be huge for Supreme, and in turn, its shareholders. The company is targeting business to business commerce – one of the only in the space that is – and intends to sell its product directly to retailers and distributors for resale to the public.The 7ACRES facility has the potential to produce 40,000 kilos or more per harvest (so say, annually) at capacity. As a starter, the company is producing about one tenth of capacity, to prove efficiency ad process to a high enough degree that it can pick up a seller's approval. From there on out, we expect the company to gradually step up its production towards capacity.So that's the story and the path forward, let's get to the numbers. The good thing is, cash is in place (as of earlier this week, coincidentally) to carry the company through to its first harvest sale and beyond. The company just picked up $50 million as part of a bought deal, private placement of convertible debenture units, involving Canaccord Genuity Corp. and a syndicate of underwriters. While this deal isn’t great from a potential dilution perspective, there is a holding period (four months) on conversion, which limits the impact a little.More importantly, we don't think that the company would be able to raise $50 million unless someone, or a group of some-ones, was pretty confident that Health Canada was about to grant approval for sale.We will be updating our subscribers as soon as we know more. For the latest updates on SPRWF, sign up below!Disclosure: We have no position in SPRWF and have not been compensated for this article.