Supreme Cannabis Company Inc (OTCMKTS:SPRWF) On The Comeback Trail

Supreme Cannabis Company Inc (OTCMKTS:SPRWF) is climbing back up the charts again. This is one cannabis stock that we have covered quite a bit here at Insider Financial when the stock was running. In this pullback, we moved to the sidelines, but we are liking what we see in the cannabis space and that warrants taking a look at SPRWF once again. SPRWF Daily ChartBackgroundFor those of you that aren’t familiar with Supreme Cannabis, here’s a little background info. Supreme Cannabis is 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 award-winning brand 7ACRES. 7ACRES is a federally licensed producer of 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 its "Brand of the Year" award win at the 2018 Canadian Cannabis Awards, and 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. 7ACRESAt the end of December, 7ACRES had 19 completed flowering rooms and is on track for all 25 flowering rooms to be completed in March 2019. Once completed, 7ACRES will have a greenhouse footprint of approximately 300,000 square feet, with the total facility reaching over 440,000 square feet. Supreme Cannabis expects 7ACRES to reach its estimated annual output of 50,000 kg by the middle of calendar 2019.Each of the facility's modular flowering rooms utilize industry-leading HPS lighting technology to provide "indoor" quality lighting that is supplemented by the sun to improve terpene and cannabinoid production. The facility's modular design allows each flowering room to provide variable environmental conditions tailored to the specific needs of the crop in production, while also reducing the risk of crop loss. John Fowler, Founder and President of Supreme Cannabis, said:

“We are thrilled with the progress made at our facility in Kincardine, Ontario and are excited to announce that we are nearing completion for all of our flowering rooms. In our view, 7ACRES sets the international standard for cannabis cultivation and allows us to grow craft-quality cannabis at scale. We believe consumer behavior has validated our thesis that people prefer higher-quality flower and are willing to pay more for it, and as the market expands for derivative products such as vape pens and edibles we expect consumers will prefer products extracted from the highest quality inputs.”

Wiz Khalifa partnershipSupreme Cannabis has a deal with Wiz Khalifa to develop and launch premium cannabis products for Canada and international markets (excluding the United States). His company, KKE develops and markets unique cannabis related products, including the popular "Khalifa Kush" premium strain. Wiz Khalifa, a globally-recognized cannabis taste maker, will provide a range of product development services to Supreme Cannabis.Supreme Cannabis will be the exclusive producer of KKE branded products in Canada and, subject to certain approvals, international markets (other than the United States). This will include a strain to be developed by the parties in Canada based on KKE's flagship "Khalifa Kush" strain. Supreme Cannabis and KKE will work to develop and commercialize a product lineup that is expected to include pre-rolls, extracts, capsules, and cannabis oils to be sold by Supreme Cannabis under the KKE brand.Q1 resultsSupreme Cannabis had an impressive Q1.

• Q1 2019 revenue for the Company was $5.14 million, a 229% increase from Q1 2018 ($1.56 million) and a 45% increase from the previous quarter ($3.55 million).
• Q1 2019 net comprehensive loss for the Company was $5.39 million, compared to a net loss of $2.18 million in Q1 2018 and a net income of $0.23 million in the previous quarter.
• The Company has signed several supply agreements with other Licensed Producers, including supply agreements with Tilray (NASDAQ: TLRY) which are estimated to be in excess of $14 million
• The Company signed agreements to supply adult-use cannabis to consumers in six Canadian provinces.
• The Company upgraded to the OTCQX market in the United States.
• The Company added 50,000 square feet of licensed flowering room capacity, bringing estimated potential production to 13,333 kg. In less than twelve months, the Company has added 80,000 square feet of licensed flowering room capacity.

Bottom lineCurrently trading with a market cap of $352 million, SPRWF is an exciting name among cannabis players. Considering the progress on the 7ACRES facility and the Wiz Khalifa deal, SPRWF is on the comeback trail. It’s only a matter of time before new all-time highs are made.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.Image courtesy of Ian Sane via Flickr