FIRE stock is showing unusual movement in today’s session after Supreme Cannabis Company (TSX:FIRE) (OTCQX:SPRWF) announced an exclusive agreement with US company Pax Labs.
Since the legalization of cannabis in Canada, a whole range of companies have come up in the industry, and one of the better-known names is Supreme Cannabis Company, based out of Toronto. The company is a cannabis conglomerate of sorts, since it owns a range of cannabis companies, brands, and products. It was established back in 2014, and since then it has grown at an impressive clip by specializing in premium cannabis products.
Agreement With Pax Labs
Today, Supreme Cannabis announced that it has entered into an exclusive agreement with US company Pax Labs, which is engaged in the manufacturing and marketing of vaporizers. The partnership is with Pax Labs’ Canadian subsidiary Pax Era, by way of which the company would be an exclusive supplier.
The partnership is a strategic one because the vaporizer market in Canada is growing at a fast clip. According to the terms of this agreement, Supreme Cannabis’s subsidiary 7ACRES will be one of the exclusive suppliers of cannabis oil pods for Pax Era. Pax Era is a strong brand and sells as many as 1.5 million units of its products globally every year, which is why this partnership could prove to be highly beneficial for both companies.
FIRE stock is up almost 5% at the time of writing, selling for $1.72 CAD on the TSX. Moreover, SPRWF stock is up 6% at $1.30 on the OTCQX market.
However, that is not the only significant development for Supreme Cannabis Company over the past few months. The company has been expanding aggressively, and last month, it completed a deal to acquire Blissco Cannabis Corp in a deal worth $48 million CAD ($36 million USD). The deal has been completed entirely in Supreme stock. Blissco is a well-known brand in the wellness segment and is engaged in making cannabis oil at its 18,000 square foot plant located in Langley.
The CEO of Blissco will continue to lead the company for the foreseeable future. It is another particularly important addition to Supreme Cannabis’s portfolio of cannabis companies, considering the growing popularity of cannabis oils.
FIRE stock is up about 15% since the beginning of this year. However, the stock has corrected about 30% from its 52-week high of $2.53.
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