Kinkardine, Ontario-based Supreme Pharmaceuticals (
CSE:SL,
Forum) has been riding a wave of retail investor support this past week after it announced Health Canada had finally given the company an inspection date for their medical marijuana facility, after a lengthy period of waiting.
Today the company announced it had
completed the inspection – potentially the last hurdle before earning their license to grow.
While news out of the company was restricted to a single line regarding the inspection being completed, and shared no other details, tradition indicates companies are made aware on the spot if there are glaring deficiencies that will serve as a bottleneck in the approval process, and no such issues were mentioned publicly Wednesday.
Supreme boasts a 342k sq ft hybrid greenhouse facility backing onto local power suppliers, with overwhelming local resident and political support. CEO John Fowler has expressed a will to grow inexpensive cannabis that could be sold for as little as $3 per gram, which would put competitors under immediate pressure to match and likely spark a rush of clientele signups.
The company had seen its stock under pressure by short sellers for some time as Health Canada moved at a glacial pace under the former Conservative federal government, but has seen the stock almost double in the last week, holding at $0.355 Wednesday, up from $0.13 in mid-September.
The company has 88.6m shares outstanding and a $31.5m market cap. If the license is approved, based on comparables like Aurora (
CSE:ACB,
Forum) ($71m) and Mettrum (
TSXV:MT,
Forum) ($58.7m), it wouldn’t be surprising to see the Supreme market cap double again.
--Chris Parry
https://www.twitter.com/chrisparry