The Supreme Cannabis Co.
Since the announcement, shares of Supreme have risen 8% as of market close today, reaching gains as high as 14% mid-day. Investors clearly like the deal — here’s why.
Value Extracted from Truverra
Truverra is a Toronto, Ontario based company focused on the development, production, and marketing of cannabis-derived medical products. They have two wholly-owned subsidiaries: Canadian Clinical Cannabinoids (CCC) and Truverra Europe.
Their CCC facility is a 5,000 sq. ft. Health Canada licensed research and extraction facility. Supreme intends on refocusing CCC to produce high-quality concentrate and vape extracts. Their European branch is located in the Netherlands and is focused on producing hemp-based CBD products.
Supreme Position for Success
Ultimately, this is a prudent move by Supreme before cannabis Legalization 2.0 (edibles and extracts). Utilizing Truverra’s extraction expertise allows them to focus on what they do best — growing exceptional product. With Supreme’s high-quality flower as an input, you can expect the final product to be equally as impressive.
This also provides Supreme with exposure to the European CBD market. With Truverra’s heavy medical focus, the backstop of research results they have gathered is very valuable. Supreme sees the Truverra acquisition as a key component of their global medicinal cannabis strategy.
The deal is expected to close before the end of August upon approval from Truverra shareholders. Given Truverra is a private company, it seems unlikely there will be any challenges closing the deal. It’s clearly a solid opportunity for both companies.
The Supreme Cannabis Co. is a Market Awareness Client of Capital 10X
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