After de-listing from the Venture Exchange and moving up to the full Toronto Stock Exchange last month, The Supreme Cannabis Company, Inc. (TSX: FIRE; OTCQX: SPRWF; FRA: 53S1) is looking to start making more international deals.
Today, the company signed a letter of intent to acquire a cannabis production license in the southern European island nation of Malta. That letter is the first in a series of regulatory hurdles to overcome before receiving licensing and acquiring greenhouse space.
While recreational marijuana remains illegal in Malta at the federal level, it was partially decriminalized in 2015 when laws were passed to reduce punishment for cannabis offenses. Medical cannabis was just officially legalized in the nation last year.
Discussing the strategic rationale behind starting production in Malta, Supreme’s Chief Executive Officer Navdeep Dhaliwal commented:
If approval from the Malta government is eventually granted, Supreme will begin cultivating cannabis for extracting oil certified under the European Union Good Manufacturing Process (EU GMP) regulations. That oil would then be delivered to multiple EU markets for medical purposes through Malta.
While growth in Canada has been sluggish for major licensed producers still seeking to overcome supply issues and battle the existing black market, cannabis companies have increasingly looked to international opportunities for expansion.
Germany and Latin America have dominated the deal-making in recent months, with Aurora Cannabis Inc. (NYSE: ACB; TSX: ACB; Frankfurt: 21P) recently supplying cannabis oil to German pharmacies. Khiron Life Sciences (TSXV: KHRN; OTCQB: KHRNF) also announced several deals with companies in Uruguay and Colombia.
On the Canadian side, Supreme Cannabis is still ramping up production after completing a new phase of construction at the company’s Kincardine, Ontario-based greenhouse. The end goal of that expansion is to hit the milestone of producing 50,000 kg of cannabis annually at the facility when a projected 25 flowering rooms are up and running.