On June 1, 2017, SUPREME PHARMACEUT COM NPV (OTCMKTS:SPRWF) announced that it received final approval from the TSX Venture Exchange (TSX.V) to list the Company’s common shares on the TSX.V. The common shares began trading on the TSX.V at the opening of markets on June 6, 2017 under the symbol “FIRE”. In connection with listing on the TSX.V, Supreme’s common shares will be voluntarily delisted from the Canadian Securities Exchange at the close of markets on June 5, 2017. John Fowler, President and CEO, stated:
“The graduation from the CSE to the TSX.V is a milestone in our development as a company. Since we began our journey in 2013 we have strived to become one of Canada’s leading cultivators of high quality cannabis grown on a commercial scale. In 2015, we focused our business model on our strength in cultivation by becoming Canada’s first B2B focused Licensed Producer. Since then we have continued to invest in strengthening our core competency by focusing on continual improvement of our team, facility and cultivation practices. Our ticker symbol ‘FIRE’ embodies our passion for the cannabis plant and our commitment to quality. Our graduation to the TSX.V represents the next chapter of our growth.”
On June 13, 2017, John Fowler, President & CEO, Supreme Pharmaceuticals Inc. (FIRE) along with other members of the Company, joined Brady Fletcher, Managing Director, TSX Venture Exchange, to participate in the ceremonial opening of the market that all new companies that join the TSX Venture Exchange have the privilege of taking part in.
For those not familiar with the Company, Supreme is a Canadian publicly traded company committed to becoming a leading cultivator and distributor of sun grown cannabis through its wholly-owned subsidiary 7ACRES. 7ACRES is a federally licensed producer of medical cannabis pursuant to the Access to Cannabis for Medical Purposes Regulations operating inside a 342,000 sq. ft. Hybrid Greenhouse facility. The Hybrid Greenhouse combines the best technology of indoor production with the efficiencies and sustainability of a greenhouse, in a single large-format production footprint.
In other favorable news about the Company, Supreme Pharmaceuticals Inc announced on June 19, 2017 that its wholly-owned operating subsidiary, 7ACRES, had been granted permission to sell under the Access to Cannabis for Medical Purposes Regulations. Furthermore, Health Canada informed Supreme that the License will be amended in the near term in order to permit 7ACRES to sell cannabis seeds and clones to other licensed producers. Health Canada has removed the previous production and storage capacity of the License. Supreme is now permitted to store up to $150,000,000 worth of cannabis at any given time. In addition, the License term has been extended for an additional two years and the License is now valid until March 11, 2020. John Fowler, President and CEO, stated:
“We are pleased to be making progress with Health Canada. The forthcoming approval to sell cannabis genetics is one leg of our B2B sales model, allowing us to monetize our genetic inventory. As we await an update on the sales approval, we continue to cultivate and build our inventory in advance of sales-approval.”
SPRWF stock has been trading sideways between $1.00, and about $1.45 since the beginning of 2017. It has dipped below $1.00 in the last month or so. The stock is currently trading at $.80. Current market capitalization stands at CA$201.11million, on 187.96 million shares outstanding as of July 8, 2017.
There are a couple of items that need to be cleared up by the Company. First, the websites for both Supreme Pharmaceuticals Inc, and its subsidiary 7ACRES were either not functioning at the time of this article, or provided very limited information. Second, according to the latest financial reports dated March of 2017, the Company is yet to earn its first dollar of revenue. Yet, the corresponding balance sheet reports over CA$91 million in total assets, with CA$42.69 million in liabilities. Nothing wrong with a positive balance sheet, but “where’s the beef (revenues).” Investors will need to see revenues in order for SPRWF to garner any appeal as compared to other Canadian cannabis players already generating revenues. We will be updating our subscribers as soon as we know more. For the latest updates on SPRWF, sign up below!
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Disclosure: We have no position in SPRWF and have not been compensated for this article.