Supreme Cannabis Company Inc (OTCMKTS:SPRWF) A Breakout Stock On Recreational Cannabis

A bear run that had hit Supreme Cannabis Company Inc (OTCMKTS:SPRWF) has lost its momentum. The stock has since bottomed out, evoking suggestions it could be a breakout stock heading into the year-end.

In one month, the stock has rallied by more than 60%, on investors taking note of a string of supply agreements the company has signed as it continues to execute on its growth strategy.

Supreme Cannabis Price Analysis

The cannabis-focused company is fresh from signing six provisional supply agreements and is now one of only six companies with five or more provisional supply agreements. The signing of the agreements goes a long way in strengthening the company’s prospects in the burgeoning industry ahead of recreational marijuana market coming online in October.

Buoyed by the supply agreements, investors have continued to push the stock up the charts at the back of high turnover in traded shares. Supreme Cannabis Company is currently trading in a steep uptrend as it continues to erase some of the losses accrued in the first half of the year.

SPRWF Daily Chart

The company is currently flirting with a key resistance level at $1.70 mark, above which the emerging uptrend could accelerate to the $2 a share mark, seen as the next resistance level. On the downside, support is seen at the $1.36 mark, below which the stock could drop to the $1.12 level, the next substantial support level.

What Does Supreme Cannabis Do?

Supreme Cannabis Company is a Canadian public company focused on providing premium products and brands. Through its wholly owned subsidiary 7ACRES, the company operates a 342,000 square foot cannabis production facility in Ontario. Its portfolio of products includes flagship brand 7ACRES.

The company’s portfolio also includes an investment and long-term distribution partnership in Lesotho with Medigrow for medical grade cannabis Oil.

Why is the Stock Surging?

Supreme Cannabis sentiments in the market have received a boost, on the signing of supply agreements expected to strengthen its revenue streams further. Starting October 17, 2018, the company’s subsidiary 7ACRES is to start supplying Nova Scotia Liquor Corporation and PEI Cannabis Management Corporation with recreational cannabis as part of a supply agreement entered.

The new agreements affirm the company’s position in the elite group of companies that have secured supply agreements in five key provinces ahead of marijuana recreational sales market coming online.

“We expect to be one of Canada’s few producers who will be in stores coast-to-coast when the Canadian recreational market kicks off on October 17 the, and the only major producer to be listing exclusively as a premium offering,” said John Fowler, CEO of Supreme Cannabis.

Supreme Cannabis is strategically positioning itself as it eyes a bigger piece of the pie on the recreational marijuana market. Its production capacity is set to clock highs of 50,000 kg, on 7ACRES production facility becoming fully operational.

Management Appointment-OTCQX Listing

The company has already announced three senior leadership appointments as it continues to position itself to become a leading premium brand in the upcoming recreational market. Scott Walter has since been appointed’ as the Vice President, Corporate Development. He is tasked with the responsibility of executing on the company’s growth strategy. Craig Young takes over as Vice-president Sales tasked with the responsibility of evolving the company’s sales strategy and building a top-tier sales team.

In addition to the management appointments, Supreme Cannabis has received a boost on its bid to gain exposure in the greater cannabis marketplace. The OTC Market Group has approved the listing of its stock in the OTCQX Best Market, marking an important step in the company’s growth plan.

“Being traded on OTCQX will allow for greater exposure, accessibility, and liquidity for the investment community as we continue to execute on our strategy of building a global cannabis company,” said Mr. Fowler.

Bottom Line

Supreme Cannabis ability to execute on recreational market strategy will define its growth prospects going forward. The signing of important supply agreements thus sets the stone rolling as the company continues to strengthen its revenue streams. Listing on the OTCQX marketplace is another development that underscores the company’s strategy as it continues to expand its cannabis empire.

There is no doubt that Supreme Cannabis is headed in the right direction as it continues to execute on its growth strategy. After a poor performance in the first half of the year, the stock looks set to shrug off the losses and bounce back to this year highs. For those looking for exposure in the cannabis sector, this might as well be an exciting long-term play on the opportunity at stake with Canadian recreational market.

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.

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Supreme Cannabis Company Inc (OTCMKTS:SPRWF) A Breakout Stock On Recreational Cannabis
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