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Supreme Cannabis Company Inc (OTCMKTS: SPRWF) Further Gains Ahead

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Supreme Cannabis Company

Supreme Cannabis Company Inc (OTCMKTS: SPRWF) had an excellent start to 2019 rallying by more than 70%. However, the stock has come under pressure since February. After a steep pullback, the stock remains exposed to a critical support level a breach of which could result in further drops.

Amidst the underperformance in recent weeks, the pullback could as well be a minor correction from where the stock is likely to bounce and go on to post-new higher highs.

SPRWF Catalysts And Share Price Analysis

The confirmation that Supreme Cannabis Company has established a new genetics company is one of the development that continues to prop the stock’s market sentiments.  The Company has also refined its product line with the launch of cannabis oil, products affirming underlying innovation.

The approval of an additional 60,000 square feet production capacity at the Company’s 7Acres facility is set to ramp up production capacity to 26,250kg. Supreme Cannabis has also embarked on an aggressive expansion drive targeting growth opportunities in Europe.

The current share price does not reflect the Company’s long-term prospects with respect to the underlying developments that underscore underlying growth. The stock is thus likely to bounce back once the correction loses its edge.

Immediate support, likely to prevent further downside action, is the $1.35 level. Above the $1.35 mark, Supreme Cannabis remains supported for further upside action as a bounce-back play.

SPRWF Daily Chart

Conversely, a breach of the support level could result in the stock plunging lower in continuation of the emerging downtrend.

What Does Supreme Cannabis Company Do?

Supreme Cannabis Company is a cannabis-focused company engaged in the production of medical cannabis for distribution in Canada. The Company boasts of a diversified portfolio of distinct cannabis companies as well as products and brands.

Why Supreme Cannabis Could Bounce Back?

After a recent pullback, Supreme Cannabis is likely to resume its uptrend as investor s react to a string of developments that underscore growth metrics and long-term prospects.   The unveiling of Cambium Plant Sciences as the Company’s new subsidiary is a development that should continue to excite investors.

The new subsidiary is to spearhead Supreme Cannabis drive to becoming an industry leader when it comes to the agricultural revolution of cannabis genetics. With the systematic application of research technology and science, the subsidiary is to focus on coming up with premium cannabis genetics for recreational and medical wellness applications.

“Cambium will develop cultivars that benefit our in-house brands, as well as our domestic and global cultivation and manufacturing partners. Initially, Cambium is expected to benefit from 7ACRES’ established genetics, existing infrastructure and the unparalleled plant knowledge of its team,” stated CEO Navdeep Dhaliwal.

The launch of Cambium to spearhead research operations coincides with the launch of cannabis oils products as Supreme Cannabis continues to strengthen its product line. With the launch of the new products, the Company is planning to target adult-use consumers in select Canadian markets.

Supreme Cannabis annual production capacity is also set to receive a boost at a time when demand for cannabis products is on the rise. The Company’s wholly owned subsidiary 7Acres has secured a Health Canada approval for the construction of six additional flowering room that are poised to add up to 60,000 sq. Ft. of production space.

The additional flowering room will increase Supreme Cannabis annual cannabis production capacity from 17,500kg to 26,250kg. The licensing of 25 flowering rooms in future should take the production capacity to 50,000kg.

As the cannabis production capacity continues to increase, so is Supreme Cannabis expanding its footprint into new markets in pursuit of new markets for its products. The Company has already set foot in Malta, one of Europe’s commercial entry points and an exciting market for medical cannabis products

“We’re pleased to announce that we have secured a letter of intent from Malta Enterprises, taking another step forward in our global growth strategy. Using the intellectual property and expertise we’ve gained in Canada, we intend to deliver high-quality cannabis products to medical patients in multiple international markets,” said Mr. Dhaliwal.

Bottom Line

Recent developments underscore a company positioned for robust growth with the expansion of cannabis product line as well as expansion into new markets.

Supreme Cannabis Company share price edging lower after a stellar start to the year provides an opportunity to bet on a stock with tremendous potential.  The stock is thus an ideal breakout play after the recent correction lower.

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Disclosure: We have no position in SPRWF and have not been compensated for this article.

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Is Neptune Wellness Solutions Inc (TSE:NEPT)(NASDAQ:NEPT) A Good Bet Right Now?

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Neptune Wellness Solutions

There is no doubt 2019 was a tough year for the hemp/cannabis businesses. However, there are a few hemp/cannabis stocks that still managed to make their investors proud. Neptune Wellness Solutions Inc (TSE:NEPT)(NASDAQ:NEPT) is one of those stocks. Investors who put their bet on Neptune at a time like this saw their investment increase 130% by July of last year.

Neptune Wellness Solutions is already off to a strong start in 2020. The stock has gained more than 15% in the past week alone. Looking at how Neptune has positioned itself in the hemp/cannabis market, you cannot dispute 2020 is shaping up to be a great year for the stock. Then you notice that Neptune insiders are deeply invested in the stock. Insiders own more than 17% of all shares in the company. The company’s market cap of $280 million shows that insiders alone have sunk $48 million in the stock.

You are about to find out more reasons why Neptune Wellness Solutions looks to be a good pick right now. But first, here’s what you should know about the company we’re discussing.

About Neptune Wellness Solutions

Neptune Wellness Solutions has been around since 1998 and is headquartered in Laval, Canada. It is engaged in the extraction, formulation, and packaging of value-added cannabis products for both Canadian and global markets.

This is shaping up to be Neptune’s year for a number of…

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Is Tetra Bio-Pharma (CVE:TBP) (OTCMKTS:TBPMF) A Smart Pick?

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Tetra Bio-Pharma

Investors will remember that 2019 wasn’t a great year for cannabis stocks, especially Canadian stocks. Issues from uncertainty over Canada’s national elections to shortage of cannabis retail stores in Ontario greatly weighed on Canadian cannabis stocks last year. These problems are largely out of the way and investors can now spot cannabis stocks with a promising outlook in 2020. Tetra Bio-Pharma (CVE:TBP) (OTCMKTS:TBPMF) is one play poised for a big breakout in 2020 as its drug products go on sale.

Tetra Bio-Pharma is one of the most promising cannabis stocks in 2020 and investors have really warmed up to the stock. At $0.50, Tetra stock has already gained more than 60% year-to-date. But that is just the beginning and we feel there is a great story to tell here. First, however, it is important for investors to understand the company we’re discussing.

About Tetra Bio-Pharma

For investors who may have just come across Tetra Bio-Pharma for the very first time, this is a Canadian cannabis company. It is focused on developing cannabis-based drugs for a variety of conditions, including cancer.

Tetra Bio-Pharma about to begin commercializing its drug products

As a drug company, Tetra Bio-Pharma is insulated from many challenges that face conventional cannabis companies. For example, companies that make adult-use cannabis products must cope with cutthroat competition in the market. Moreover, Canadian cannabis companies have Continue Reading

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Why Investors Are Warming Up To Fire & Flower Holdings Corp (TSE:FAF) (OTCMKTS:FFLWF)

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Fire & Flower Holdings

The disastrous 2019 taught investors the importance of carefully screening cannabis stocks for great picks that can withstand industrywide shocks. That explains why investors are warming up to Fire & Flower Holdings Corp (TSE:FAF) (OTCMKTS:FFLWF) in 2020.

Fire & Flower Holdings has positioned itself to take full advantage of the recently expanded cannabis market under Cannabis 2.0. Investors are realizing that FFLWF is one pick that can make a huge difference in their cannabis portfolio. Fire & Flower Holdings has already gained more than 25% year-to-date, a testament to the strong investor interest in the stock in 2020.

About Fire & Flower Holdings

Fire & Flower Holdings is a Canadian cannabis company. It operates as a cannabis product retail chain. It operates a network of dozens of cannabis retail outlets in Canada. FFLWF currently has licenses to operate cannabis retail stores in Alberta and Saskatchewan provinces. In addition, it runs a cannabis distributor business in Saskatchewan.

Investors will no doubt remember that 2019 was a tough year for the cannabis sector, with a widespread collapse of many cannabis stocks big and small. That shows why in 2020 investors are looking for cannabis stocks that can deliver excellent returns and make them forget the pain of the past year. FFLWF has emerged as one of the favorite cannabis stock picks for investors early on in 2020. There are several reasons behind that and here are…

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