There is always risk. But, calculated risk.....
To all potential investors; to all invested members; to all the naysayers_a Supreme synopsis from Michael Robinson author of Nova X Report and Roadmap to Marijuana Millions.
Enjoy
Supreme Pharmaceu cals Inc. (OTC: SPRWF)
As of March 2016, there were only 24 approved medical marijuana companies operating in Canada.
Conservative estimates from news organization e Toronto Globe and Mail, show that, even without complete legalization – which is on the agenda of new Prime Minister Pierre Trudeau – the medical cannabis business should hit about $1.5 billion in the next four years. It will be signi cantly higher if Canada completely legalizes cannabis.
Simple division means each rm could pick up about $416 million over that timeframe.
So it pays to start vetting those companies. Find the companies that have a unique niche they can exploit now to maintain solid growth within the medical marijuana sector, but also scale it up and dominate their niche if full-on legalization comes to pass.
Supreme Pharmaceuticals Inc. (OTC: SPRWF) is the only grower operating a business-to-business (B2B) model. It doesn’t retail its product. Instead it sells to other companies that then sell into the regulated retail market.
is is a pure growth-based weed stock.
Right now, dispensaries are getting their weed from licensed growers like Supreme as well as local, unlicensed growers. It’s very likely that both the regulated weed companies as well as the government would like to rein in the independent growers, since they compete with the new licensed weed companies while at the same time representing a potential huge source of revenue for the government.
e smaller independent growers will likely see some limitations placed on the size and scope of their operations, so they won’t be crushed so much as contained. Otherwise, the independents would have an unfair pricing advantage since they’d be free from the costly regulatory standards the licensed companies have to operate under.
Supreme is focused on national distribution channels and long-term contracts, which would lock in prices for retailers and help them to manage their pro tability better.
Also, Supreme o ers recognized brands of weed and will “white label” as well. at means that any retailer who wants to sell his or her own ‘house’ brand, can buy weed from Supreme, and call it whatever they like. Supreme is only interested in the sale of its harvests, not consumer branding.
at strategy also means it won’t have to deal with additional advertising costs as the market expands, because it won’t have to worry about branding. Retailers bear that expense.
Supreme’s actual growing is carried out by its subsidiary, 7Acres. e name refers to the actual size of the “footprint” – 342,000 square feet of grow space – its greenhouses occupy. e company is located northwest of Toronto near the banks of Lake Huron, a short drive to Toronto or Detroit.
And because of its proximity to the Great Lakes, it can ship by boat, saving transit costs and helping maximize margins.
Also, its proximity to large urban areas in the U.S. means, like we saw with OrganiGram, the company can bene t from medical tourism today and from recreational tourism tomorrow should cannabis be legalized completely.
At full capacity, the 7Acres “Hybrid Greenhouse” will produce 50,000,000 grams of output every year.
In late June, while waiting on its dried marijuana sales license, Supreme made its rst sale of six genetic strains of its production. at’s an encouraging indication that the rm has a sharp sales team and that its product is stirring interest in the market.
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