Shares of Supreme Cannabis Company Inc (OTCMKTS: SPRWF) have started edging lower in what appears to be a minor correction, pending further upside action. Amidst the pullback, the stock is still up by more than 60% and engulfed in an emerging uptrend.
Catalysts And Share Price Analysis
The meteoric rise follows the approval of a new cannabis production facility poised to lead to an additional 60,000 square feet of cannabis production capacity. A move by the company to launch cannabis oil products in the Canadian Consumer market also continues to excite investors.
In the recent past, the company’s market sentiments have inched higher following the launch of a cannabis genetics company. Cambium Plan Sciences is the latest entity that Supreme Cannabis Company intends to use to disrupt the cannabis industry.
The stock taking off, in view of recent developments that underscores long-term prospects, does not come as a surprise. A pullback from the $1.71 level could as well be a minor correction on investors taking profits.
The pullback is staring at support at the $1.35 mark above which the stock remains well supported for further upside action. Conversely, a breach of the critical support level could result in the stock plunging lower in continuation of the emerging bear trend.
As it stands, Supreme Cannabis Company is likely to continue climbing the cannabis ladder especially on bouncing off the support level. A rally followed by a close above the $1.71 technical level would result in the stock turning bullish paving the way for bulls to bet on further upside action probably back to 52-week highs.
What Does Supreme Cannabis Company Do?
Supreme Cannabis casts itself as a diversified global portfolio of distinct cannabis companies. Its portfolio includes subsidiaries 7ACRES, Cambium Plant Science and Medigrow Lesotho. The Company specializes in the production of medical cannabis products used to address various medical conditions
Increasing Production Capacity
Supreme Cannabis Company is a potential breakout play after a minor correction from this year highs. A flurry of positive developments supports further upside action as market sentiments continue to inch higher.
Improving cannabis production capacity is one of the reasons to be bullish about Supreme Cannabis long-term prospects. The company’s wholly-owned subsidiary 7ACRES has secured approval from Health Canada for additional flowering rooms totaling 60,000 sq. Ft.
With the approval, flowering room space is poised to clock highs of 180,000 sq. Ft. expected to take cannabis production capacity to 26,560kg from 17,500 kg. The expansion comes on the heels of the 7ACRES brand achieving multiple cannabis industry awards key among them being Brand of the Year.
With the increased cannabis production capacity, Supreme Cannabis intends to launch cannabis oil products into the recreational market.
“Our formulation will leverage super-critical CO2 technology to produce a high quality, purified cannabis oil which we re-formulate with the naturally occurring cannabis terpenes from our 7ACRES’ High-End CannabisTM. The result is a unique, plant-based cannabis oil that carries the award-winning qualities of our flower into an oil product for consumers looking for a premium cannabis oil experience,” said CEO Navdeep Dhaliwal.
Revolutionizing Cannabis Genetics
In addition, Supreme Cannabis has confirmed the launch of Cambium Plant Science, a subsidiary tasked with the responsibility of leading the agricultural revolution of cannabis genetics. The new subsidiary will focus on coming up with the next generation premium cannabis genetics for recreational, medical and wellness application.
Cambium is to develop Cultivars that will benefit in-house brands as well as domestic and global cultivation partners. Supreme Cannabis has set aside $14 million for the development of a world-leading facility for cannabis-focused research and innovation as part of the cannabis genetics drive.
“From the next blockbuster recreational strain, to disease-resistant agricultural seed stock, Cambium will seek to improve the economic profile of cannabis production by pushing the boundaries of the cannabis plant,” said Dr. Alan Darlington, General Manager of Cambium.
Supreme Cannabis has achieved significant milestones in its bid to become an industry leader in the cannabis sector. Expansion of cannabis production capacity leaves the company well positioned to enjoy economies of scale.
The launch of cannabis oil underscores in-house innovation as the company seeks to take advantage of the growing demand for such products. With the company investing $14 million to disrupt the cannabis industry through cannabis plant genetics, the future can only be bright.
For investors looking for a high reward stock in the cannabis sector, then Supreme Cannabis is an ideal pick as it is trading at a discount with tremendous long-term growth prospects.
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Disclosure: We have no position in SPRWF and have not been compensated for this article.