Supreme Pharmaceuticals Inc (OTCMKTS:SPRWF) has been one our top picks in the cannabis space over the past several months given the company’s exposure profile and its operational growth trajectory. SPRWF has been red hot in recent days as 2017 came to a close, with shares launching as much as 50% in the past week. This is part of an industry-wide move, as most of the cannabis patch has been on a tear to close out 2017 action, with a number of major catalysts looming for the group in 2018.

The latest from the company comes in the form of its announcement of the purchase of an approximately six-acre property adjacent to the 7ACRES facility in Kincardine, Ontario. Supreme expects to build an indoor cultivation facility to produce high quality, “California-Style” cannabis for the premium product segment. If the end market for this product ends up, in fact, being California, then it pushes that button that has the market so excited right now, with recreational pot set to hit the legal market in the Golden State in just days.

Supreme Pharmaceuticals Inc (OTCMKTS:SPRWF) trumpets itself as a company that focuses on the production and sale of medical marijuana in Canada.

The company was formerly known as Supreme Resources Ltd. and changed its name to Supreme Pharmaceuticals Inc. in February 2014.

Supreme Pharmaceuticals Inc. was incorporated in 1979 and is headquartered in Vancouver, Canada.

According to company materials, “Supreme is a Canadian publicly traded company committed to becoming a leading cultivator and distributor of sun grown cannabis through its wholly-owned subsidiary 7ACRES. 7ACRES is a federally licensed producer of medical cannabis pursuant to the Access to Cannabis for Medical Purposes Regulations operating inside a 342,000 sq. ft. Hybrid Greenhouse facility. The Hybrid Greenhouse combines the best technology of indoor production with the efficiencies and sustainability of a greenhouse, in a single large-format production footprint.”

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As noted above, the company just announced the purchase of an approximately six-acre property adjacent to the 7ACRES facility in Kincardine, Ontario. As mentioned, Supreme expects to build an indoor cultivation facility to produce high quality, “California-Style” cannabis for the premium product segment. Shares have responded to the announcement in a big way, blasting off on yet another breakout higher. The stock has been in a strong trend that has been defined by a series of lateral consolidations followed by accelerations on the upside.

“Supreme’s goal is to be synonymous with quality and a leader in the premium segment for cannabis flower,” said John Fowler, CEO of Supreme.

“Since inception, we have been resolute in our belief that cannabis consumers are quality driven and willing to pay a premium for cannabis flowers with exceptional qualities. We believe the premium product segment for dried flower will be significantly under-supplied in Canada given the industry focus on low-cost cannabis and traditional greenhouse infrastructure. Lot 16 represents the next step in the development of our Kincardine Campus, and additional progress towards Supreme being a dominant player in the premium segment for dried cannabis flower in Canada.”

The chart shows 31% tacked on to share pricing for the stock in the past week. Market participants may want to pay attention to this stock. SPRWF has evidenced sudden upward volatility on many prior occasions. Furthermore, the stock has seen a growing influx of trading interest, with the stock’s recent average trading volume running just under 170% beyond what we have been seeing over the larger time frame.

At this time, carrying a capital value in the market of $343.1M, SPRWF has a decent store ($2.07M) of cash last reported on the books, along with total assets a bit less than $380M, which stands against an appreciable load ($3.03M) of total accumulated debt. The company pulled in a little over $1.5M in trailing 12-month revenues. We will update the story again soon as further details emerge. Sign-up for continuing coverage on shares of $SPRWF stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in $SPRWF, either long or short, and we have not been compensated for this article.