SPRWF stock is up nearly 4% today, indicating how investors feel about The Supreme Cannabis Company’s latest news. In a press release earlier today, Supreme has made the first step to secure a cannabis production license in Malta.
SPRWF Stock on LOI News
Toronto’s Supreme Cannabis Company (TSX:FIRE) (OTCQX:SPRWF) has signed a Letter of Intent or LOI with the economic development agency of Malta, Malta Enterprises.
In doing so, the company has completed the first step of its application for a cannabis production license in the country. If granted, Supreme will be allowed “to produce and process cannabis for medical use within Malta.”
Malta is considered “one of Europe’s principal commercial entry points,” and, further, allows Supreme to export medical cannabis to certain international markets from there. If Supreme’s LOI is approved, the company will use this opportunity to “pursue regulated medical cannabis distribution opportunities in the European Union.”
Malta is becoming a hot-spot for Canadian cannabis companies. Seen as a gateway to the European market, the country only legalized medical cannabis in July 2018. Since then, major cannabis producer Aurora (TSX:ACB) (NYSE:ACB) has become the first Canadia cannabis to supply medical cannabis to the country.
Aurora Cannabis has since received approval to cultivate its own cannabis in Malta. The company’s operations include a facility for cultivation, manufacturing, and distribution, carried out by its subsidiary, Aurora Malta.
Wayland Group (CSE:WAYL) has also established itself in Malta; obtaining a manufacturing license from the Malta Enterprises last July. Its deal with Malta is to supply raw materials that undergo advanced post-processing to create pure cannabis distillates, “allowing for true pharmaceutical manufacturing.”
SPRWF Stock Yield
Supreme’s main revenue driver is its recreational brand, 7ACRES. A highly potent brand of cannabis, it has greater amounts of THC than most. The company is expecting to yield 50,000 kilos of cannabis on an annual basis, which, according to the Motley Fool, is “about 14% above the industry average.” Analysts at this publication go on to say that Supreme “could be surprisingly profitable and [is] thus worth watching very closely.”
The application to produce medical cannabis in Malta is a step in a different direction for SPRWF stock. With a firm hand on the recreational market at home and a massive leap ahead into Europe’s medical market, you can understand investor delight with SPRWF stock today.
What do you think about Supreme’s LOI? Is Malta a good move for Supreme?
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