Supreme Cannabis Continues To Achieve Milestones In 2019 -- CFN Media

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Seattle, Washington–(Newsfile Corp. – April 22, 2019) – CFN Media Group (“CFN Media”), the leading agency and financial media network dedicated to the North American cannabis industry announces publication of an article discussing The Supreme Cannabis Company Inc. (TSX: FIRE) (OTCQX: SPRWF) (FRA: 53S1). The company is well-known for its exceptional leadership team and ultra-premium cannabis products sold under the award-winning 7ACRES brand. Through their 440,000 sq. ft. facility in Kincardine, Ontario, the company produces uncompromised products that are consistently listed in the highest brand category available to recreational consumers.

The Canadian cannabis industry is projected to reach C$22.6 billion over the coming years, according to Deloitte, driven by the legalization of adult-use cannabis last year and the upcoming legalization of edibles later this year. While many companies have focused on scaling up their production capacity at any cost, investors may want to shift focus to companies focused on disciplined growth and high-quality products as the industry matures.

Bringing Quality to Cannabis Oils

Altria Group’s $12.8 billion investment in JUUL for a mere 35% stake underscores the consumer shift from cigarettes to vape pens. The same concerns about smoke inhalation, offensive odors and indiscreet consumption are driving consumers from cannabis flower to cannabis oil. For example, Colorado cannabis flower sales fell from a 67% market share in 2014 to 44% market share by 2018.

Canada plans to legalize cannabis edibles and beverages later this year. By doing so, demand for cannabis oils could experience a significant increase. These products may be more palatable to consumers that are hesitant to smoke cannabis flower or use cannabis oils in vape pens. The new product categories could also create opportunities for higher profit margins as consumers may be willing to pay more for a unique experience.

Supreme Cannabis may not be a first-mover in the cannabis oil space, but its commitment to quality could make it a market leader. Using the ultra-premium cannabis grown at its 7ACRES facility, the company leverages supercritical CO2 technology to produce a high-quality, purified cannabis oil that carries the award-winning qualities of its flower into an oil product for consumers seeking a premium cannabis oil experience.

BoA / Merrill Lynch’s Buy Rating

The Supreme Cannabis Company Inc. (TSX: FIRE) was initiated with a Buy rating and C$2.50 per share price target by Bank of America Merrill Lynch on April 17, 2019. The price target reflects a 27.55% premium to the opening price on the day. Analyst Christopher Carey believes that the company’s strategy of selling to peers is sustainable over the next couple of years and its premium strategy could prove successful over the long run.

Supreme Cannabis operates a 440,000 sq. ft. cultivation facility in Kincardine, Ontario that’s designed to produce premium cannabis at scale. Currently, roughly 80% of its production goes to other licensed producers via the wholesale market, which commands attractive margins due to the shortfall in supply. Management anticipates reaching a 17,500 kilogram per year production run rate by the end of this year.

The analyst expects all Canadian cannabis companies to post strong growth over the next few years, citing the low base for comparison and strong demand from the newly created legal cannabis market. Over the long-term, the analyst notes that successful companies will have to develop and scale global strategies as Canadian supply catches up with demand in order to maintain strong growth rates enjoyed at the moment.

Looking Ahead

The Supreme Cannabis Company Inc.(TSX: FIRE) (OTCQX: SPRWF) (FRA: 53S1) is well positioned to grow over the coming quarters as it expands into cannabis oils and brings on new board members and management personnel. Investors may want to keep an eye on the stock given these two catalysts as the company continues to expand across both domestic and international cannabis markets with its ultra-premium products.

For more information, visit the company’s website at www.supreme.ca.

Disclaimer

The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/

Please follow the link to read the full article on CFN:

https://www.cannabisfn.com/supreme-cannabis-achieves-further-milestones-in-2019/

About CFN Media

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Disclaimer

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Contact:

Frank Lane
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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/44191