Toronto-based Supreme Cannabis (Toronto: FIRE) announced that it signed a letter of intent with the economic development agency of Malta — Malta Enterprises — as an initial step to obtaining a Cannabis Production License there.
Malta has been on the radar for many weed stocks as it is strategically located to export marijuana throughout Europe.
According to a company statement, “The LOI is the first step of Supreme Cannabis’ application for a Cannabis Production License in Malta.”
The license, once received, would enable Supreme Cannabis to produce as well as process cannabis for medical use within Malta — one of Europe’s principal commercial entry points. It would also position the company to export medical marijuana to certain international markets.
Once approved, Supreme Cannabis will have to produce products with EU GMP quality cannabis oil and pursue regulated medical cannabis distribution opportunities in the European Union.
“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. Malta is not only a strategic hub for Europe, it is also home to robust existing pharmaceutical and nutraceutical manufacturing industries with a deep pool of expertise,” said CEO Navdeep Dhaliwal.
“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,” the Supreme Cannabis chief added.
In early February, another big name in the industry Aurora Cannabis (ACB) announced its second-quarter results of fiscal 2019 with a loss of CAD 238 million. This was a massive drop from the year-ago profit of CAD 7.7 million. Shortly after the Aurora earnings, the entire weed stock sector slipped.
Then, by February-mid, Canopy Growth (CGC) posts a loss of CAD 0.38 per share on revenue of CAD 83 million, missing analyst predictions.
With big names seeing losses, Supreme Cannabis being a mid-tier player could capitalize on Malta and ramp up production, as well as distribution.