While major cannabis companies usually hog the media spotlight, it’s easy to gloss over some of the smaller, niche cultivators in the Canadian industry. Often time, these companies are catering to specific markets and are profitable, yet their stock prices aren’t as overpriced as some of their more visible competitors (Cronos Group and Tilray are two that immediately come to mind). One of these small producers is The Supreme Cannabis Company (TSX: FIRE) which announced today it had applied for a Cannabis license in Malta.
While it might be a surprising choice for some, Malta is considered one of Europe’s principal commercial entry points and would be an excellent choice for expansions into southern and central European markets and those alongside the Mediterranean.
“We’re pleased to announce that we have secured a letter of intent from Malta Enterprises, taking another step forward in our global growth strategy. Malta is not only a strategic hub for Europe, it is also home to robust existing pharmaceutical and nutraceutical manufacturing industries with a deep pool of expertise,” said Supreme Cannabis CEO Navdeep Dhaliwal. “Using the intellectual property and expertise we’ve gained in Canada, we intend to deliver high-quality cannabis products to medical patients in multiple international markets.”
Back in February, the company announced that it’s Q2 sales had increased by 359 percent, impressing many financial analysts. At the same time, Supreme Cannabis also announced they had received a license from Health Canada to expand an additional 30,000 square feet of extra cultivation space. They also mentioned at the time they had graduated to a listing on the Toronto Stock Exchange (TSX) at the time, departing away from the less prestigious TSX Venture Exchange.
While a small grower in the cannabis scene, Supreme Cannabis has a number of distinguishing qualities that make it stand out from the competition. For one, the company boasts a 114 gram per square foot production efficiency, which is 14 percent higher than the industry average. They are also focused almost exclusively on production premium varieties and catering to the high-end cannabis market, where there is an increasing “connoisseur” class of consumer looking to try cannabis as a luxury commodity. High-end consumables, especially in the cannabis industry, tend to have higher profit margins than low-cost producers, something which is to Supreme Cannabis’ advantage as well.
Shares of Supreme Cannabis inched up 2.9 percent today, a modest increase. Overall, the company is getting close to breaching six-month highs in stock price, while getting close to their all-time 52-week high of C2.43 per share.
Supreme Cannabis Company Profile
The Supreme Cannabis Company (TSX: FIRE) (OTCQX: SPRWF) (FRA: 53S1) 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 multi-award-winning brand, 7ACRES.
The Supreme Cannabis Company has been a leading innovator in the sector including the design of growing facilities and development of operational excellence metrics. We are confident that together with our flagship brand, proprietary technology and products, truly unique culture, and industry-leading team, we will deliver our shareholders consistent long-term value creation. – Supreme Cannabis