Members of the Cannabis Campaign for Legalizing Marijuana in D.C.
marched into the Board of Elections headquarters this Monday with
57,000 signatures demanding an initiative on the November ballot.
Initiative 71 will allow a D.C. resident to possess 2 ounces of
marijuana for personal use, to grow up to six plants and to share
marijuana with friends, though not to sell it.
Fighting the legalisation of marijuana is like fighting slavery,
women's-right-to-vote or gay marriage. You are going to end up on
the wrong side of history.
Canada's conservative government has woken up to this fact and
has begun regulating and taxing medical marijuana production –
which many industry observers believe is a precursor to full
legalisation.
Supreme Pharmaceuticals (OTC:SPRWF) (CSE:SL) is a green rush
leader, pursuing multiple medical marijuana facilities in Canada
and applying for several Marijuana for Medical Purposes Regulation
(MMPR) production licenses.
"Health Canada reviewed our 400 page application for the
Southern Ontario facility and told us that everything checks out,"
stated Supreme President and CEO, David Stadnyk, in an exclusive
interview with Financial Press. "We've been pre-approved for 24,000
kilograms of marijuana production per year, which is the largest
license they've granted in Canada. The only contingent is to make
sure our security is in place."
Recent successes in the medical marijuana space include
producers Tweed, which has a market cap of $117 million, Windfire
Capital, whose stock has increased 300% in the last 12 months, and
Affinor, which has experienced 1000% share price increase in the
last two months after declaring its intention to diversify into
medical marijuana and industrial hemp.
The new Canadian system licenses commercial producers to grow
and distribute medical marijuana to meet the expected demand
growth. There are about 40,000 qualified patients today. In ten
years the number of qualified patients is expected to be over
450,000 (source: Health Canada).
"Supreme Pharmaceutical's facility is the size of six football
fields," stated Stadnyk. "The security systems will cost about $3
million. We need fences, cameras, alarms and a Level 9 vault that
can hold $15 million worth of marijuana. It's like Fort Knox. We
have a staff of 15 engineers and construction workers there right
now installing this state-of-the-art security system."
Supreme is currently providing Health Canada additional
documentation relating to security measures, site survey, aerial
photographs, principal and technical employees and record
keeping.
"There are a lot of companies currently applying for a
government licence to produce medical marijuana," stated Stadnyk,
"but we are already approved which is the first major hurdle."
Stadnyk expects to be in Phase One of production with the next
six months, growing in about 60,000 square feet. On the revenue
side the company anticipates $10 million revenue the first year,
ramping up to about $120 million in year three. The profit margins
are estimated at 35%.
"I've been making deals in the capital markets for 25 years,"
stated Stadnyk, "but I've seldom had a situation like this one
where everything lined up so smoothly. We needed $1.5 million in
the bank to secure the production facility and we happened to have
that money in the bank. We've assembled the best team I've ever
worked with, and the stars are lining up."
Construction has begun on the core production and processing
rooms and the high security areas of the facility, including a
1,200 square foot custom-designed vault, with insulated walls and
steel security doors. The vault will be designed and installed to
meet Health Canada's requirements to store dried marijuana.
"The path to production is clearer and less-capital intensive
than the mining industry," stated Stadnyk. "You don't need $300
million to remove a mountain top, or build a system of shafts into
the ground. There are great opportunities in the medical marijuana
industry, and should marijuana become legal, which many are
predicting, that will put us in an even stronger position."
Supreme has also secured an option to purchase a South
Okanagan-based Medical Marijuana company which is currently
producing and selling Marijuana under the older MMAP licence. The
Okanagan Company has applied for a commercial MMPR license to
produce and sell commercially grown medical marijuana.
Medical Marijuana is currently being prescribed to treat pain,
neurological disorders, mental health, back spasms, and
gastrointestinal disorders. There are currently 12 companies in
Canada that have a license to grow marijuana commercially.
Exploding demand and morphing regulatory environment are creating a
once-in-a-lifetime investment opportunity for early movers into
government-sanctioned production facilities.
Supreme is in the final stages of gaining a license to build out
and operate a 342,000 square foot facility capable of producing up
to 24,000 kilograms of medicinal marijuana per year. At $5 per
gram, the facility would generate about $120 million a year in
revenues running at full capacity.
Supreme is currently trading at .07 with a market cap of $10.1
million.
Legal Disclaimer/Disclosure: A fee has been paid for the
production and distribution of this Report. This document is not
and should not be construed as an offer to sell or the solicitation
of an offer to purchase or subscribe for any investment. No
information in this article should be construed as individualized
investment advice. A licensed financial advisor should be consulted
prior to making any investment decision. Financial Press makes no
guarantee, representation or warranty and accepts no responsibility
or liability as to its accuracy or completeness. Expressions of
opinion are those of the authors only and are subject to change
without notice. Financial Press assumes no warranty, liability or
guarantee for the current relevance, correctness or completeness of
any information provided within this article and will not be held
liable for the consequence of reliance upon any opinion or
statement contained herein or any omission. Furthermore, we assume
no liability for any direct or indirect loss or damage or, in
particular, for lost profit, which you may incur as a result of the
use and existence of the information, provided within this
article.
Also, please note that republishing of this article in its
entirety is permitted as long as attribution and a back link to
FinancialPress.com are provided. Thank you.
CONTACT: Supreme Pharmaceuticals Inc.
Suite #430, 580 Hornby Street
Vancouver, BC
V6C 3B6
Email: info@supremepharmaceuticals.com
Phone: 647-340-6744