Recent development could ignite a FIRE under the stock price of Supreme Pharmaceuticals
SmallCapPower | June 19, 2017: Shares of Supreme Pharmaceuticals Inc. (TSXV: FIRE) rose 5% to close at $1.30 on Monday after the cannabis cultivator and distributor said its wholly-owned subsidiary, 7ACRES, has received several updates from Health Canada with respect to its cultivation license, which included the removal the previous production and storage capacity of the License. Supreme Pharmaceuticals is now permitted to store up to $150 million worth of cannabis at any given time.
As well, the License term has been extended for an additional two years, now valid until March 11, 2020. Supreme Pharmaceuticals believes that an update regarding its application for the sales activity will be provided in the coming weeks. In addition, Health Canada has informed Supreme Pharmaceuticals 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, which the Company said is one leg of its B2B sales model, allowing Supreme Pharmaceuticals to monetize its genetic inventory.
Supreme Pharmaceuticals Inc. began trading on TSX Venture Exchange on June 6, 2017, after moving from the Canadian Securities Exchange.
At the end of 2016, Supreme Pharmaceuticals raised $55 million through a bought-deal convertible debenture that pays investors 10% annually until maturity in January 2019, at which point the lenders can convert into equity at a price $1.30 per share. Supreme Pharmaceuticals expects to produce 10,000 kilograms of cannabis in 2017, with an estimated value of $35 million.
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