SUPREME PHARMACEUT COM NPV (OTCMKTS:SPRWF) About To Breakout
Biotech

SUPREME PHARMACEUT COM NPV (OTCMKTS:SPRWF) About To Breakout

In our last coverage of SUPREME PHARMACEUT COM NPV (OTCMKTS:SPRWF) on July 8, 2017, we discussed a number of notable developments in the company. We also went ahead to note that the company needed to show revenue in order for the stock to garner strong investor appeal.

In today’s piece, we not only confirm that SPRWF is now generating revenue, but also bring to light a number of notable developments in the company that we believe will have a favorable effect on the stock.

In this piece, we are going to talk about SPRWF achieving a revenue milestone, hiring of a renowned financial communications firm to support its investor communications, and the company’s strategy of using its client accounts to advertise its brand.

But before we get into the details, have a look at SPRWF’s share price action below.

SPRWF Daily Chart

Business

For our readers who are getting to know about SPRWF now, here’s a brief profile of the company.

SPRWF is a Canadian company operating in the regulated cannabis/marijuana industry. The company operates through a wholly-owned subsidiary called 7ACRES, which is a federally licensed producer of medical cannabis under Canada’s Access to Cannabis for Medical Purposes Regulations (ACMPR).

Through 7ACRES, SPRWF is aiming to be a leading cultivator and distributor of sun grown cannabis. The company owns a 342,000 sq. ft. Hybrid Greenhouse Facility that it says provides the best technology of indoor production combined with the efficiencies and sustainability of a greenhouse to support large-format production.

7ACRES received sales approval in late June this year, and since then it has continued to win supply contracts from some of the more prominent medical cannabis producers and vendors in Canada.

Recent developments

On October 3, SPRWF announced a first month sales milestone at its 7ACRES subsidiary. In its first month of sales, 7ACRES generated revenue in excess of $1,500,000 – implying a strong start for the business. SPRWF will record the 7ACRES sales in its quarter ended September 30.

On the sales milestone at 7ACRES, John Fowler, the CEO of SPRWF, commented that:

“Our first sales represent a significant milestone for Supreme and demonstrate our ability to cultivate premium cannabis, navigate the regulatory process, and deliver commercial quantities of a high-quality product to our retail partners. Our first sales offer additional validation of our ability to execute on our unique, scalable and focused business model.”

Source

The SunGrown model of 7ACRES features indoor cultivation and the sun in order to produce terpene-rich cannabis. In addition, SunGrown model provides for low-cost production – implying that 7ACRES is not only capable of producing high-quality cannabis, but also running a profitable operation.

It’s important to note that SPRWF’s 7ACRES subsidiary serves the business-to-business market, which is another way of saying that the company has limited exposure to the risks in the consumer market.

With SPRWF beginning to generate revenue at its 7ACRES, the management of the company has reasoned that the time is ripe for investors out there to get to know more about SPRWF as an investment opportunity.

As such, SPRWF announced on September 28 that it has hired Bayfield Strategy, Inc. to provide public relations and investor communication services. Bayfield will work with the leadership team of SPRWF to achieve its communications goals aimed at supporting growth. Those goals include expanding capital markets awareness and enhancing shareholder engagement.

The act of SPRWF stepping up its investor communications alone has a potential for boosting the stock price because awareness will create more demand.

If it is about expanding capital market awareness, Bayfield is at the top of its game. The firm has worked on communication strategies of a variety of entities ranging from public companies to private-equity firms to hedge funds. Bayfield has worked for clients across Canada, the US, UK and the expansive Europe.

Since receiving sales approval in late June this year, 7ACRES has won contracts from a number of prominent cannabis companies serving the Canadian market and beyond. On September 5, SPRWF announced that 7ACRES had completed its first sale of dried cannabis to Aurora Cannabis Inc (OTCMKTS:ACBFF).

Aurora is a leading cannabis company in the Canadian medical marijuana market. The company boasts a base of more than 19,000 registered patients, and it has made a name for itself due to its strong commitment to product quality, premium user experience and a transparent quality assurance program. That’s why before it placed an order for dried cannabis from 7ACRES, Aurora carried out a detailed quality inspection of 7ACRES.

Such rigorous due-diligence should help raise the profile of SPRWF and its 7ACRES subsidiary in the cannabis supply chain. In what is also likely to boost SPRWF’s brand recognition, Aurora will sell cannabis sourced from 7ACRES with a producer’s label as “SunGrown by 7ACRES.” SPRWF’s other customer called Emerald Health Botanicals is also doing the same.

Conclusion

With 7ACRES hitting sales milestone and SPRWF stepping up investor communications, shares of SPRWF are set to move higher as the market becomes more aware of the stock.

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 PHARMACEUT COM NPV (OTCMKTS:SPRWF) About To Breakout
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