The Supreme Cannabis Company (SPRWF)
The Supreme Cannabis Company, Inc. is a globally diversified portfolio of distinct cannabis companies, products, and brands. Since 2014, the Company has emerged as one of the world’s fastest-growing, premium plant driven-lifestyle companies by effectively deploying capital, with an emphasis on disciplined growth and high-quality products.
Supreme Cannabis recently announced that one of its brands, Blissco Cannabis Corp, has received licensing approval from Health Canada for the sale of cannabis oils from its facility in Langley, BC. The cannabis oil sales license granted by Health Canada allows Blissco to sell full-spectrum cannabidiol (CBD) oil products. By the end of the calendar year 2019, Supreme Cannabis expects that the Facility will have the capacity to produce over 7,000,000 tincture bottles annually. Supreme Cannabis also expects the Blissco brand to meaningfully contribute to projected revenue in fiscal 2020.
With this recent news, we will definitely be seeing an increase in revenues for Supreme Cannabis, making it much more attractive in the trader’s eyes. With the stock currently at $.85, we see a buy-in opportunity, the green line, at $1.00 a share. The stock has shown support to $1.20/share, so that is our target 1 (red line). Our target 2, the yellow line, is $1.60 where we can see the stock hitting on good outcomes from this licensing.
Cresco Labs Inc (CRLBF)
Cresco Labs is one of the largest vertically-integrated multi-state cannabis operators in the United States. Cresco is built to become the most important company in the cannabis industry by combining the most strategic geographic footprint with one of the leading distribution platforms in North America. Recognizing that the cannabis industry is poised to become one of the leading job creators in the country, Cresco has launched the industry’s first national comprehensive Social Equity and Educational Development (SEED) initiative designed to ensure that all members of society have the skills, knowledge, and opportunity to work in and own businesses in the cannabis industry.
Cresco Labs has announced an acquisition of Gloucester with a subsidiary of Cresco. As a result of this acquisition, Cresco Labs now holds one of the 10 vertically integrated cannabis business licenses granted in the State of New York by the New York State Department of Health. Each license gives the operator the right to operate one cultivation facility and four dispensaries in New York. The New York market is projected to grow to $500 million by 2022.
With the stock currently at $5.82, we see a solid opportunity for growth with this acquisition and new licensing. We see a buy target, the green line, at $7.05 and continued support to our target 1, the red line, $8.05. We have seen support to $11 for Cresco in the past so that is our target 2, the yellow line.
Innovative Industrial Properties (IIPR)
Innovative Industrial Properties, Inc. is a self-advised Maryland corporation focused on the acquisition, ownership, and management of specialized properties leased to experienced, state-licensed operators for their regulated medical-use cannabis facilities. Innovative Industrial Properties, Inc. has elected to be taxed as a real estate investment trust, commencing with the year ended December 31, 2017.
We are keeping an eye on IIPR as they are coming up on their earnings call. There has been a lot of news surrounding IIPR with acquisitions and deals, so we are hoping for a good earnings report. The stock is currently trading at $87.63, in the past, there have been big moves on earnings, but with current news, we are hopeful that IIPR will move up. We have a buy target, the green line, at $83 where we have seen support in the past. We then have a target 1, the red line, at $100 where the stock has also managed to trade at with support. Finally, our target 2, the yellow line, is at $120.