Chris Damas Supreme Pharmaceuticals Inc FIRE-X BUY Aug 31, 2017

A lot of people have been concerned about the sales license with this company. They were very close to getting their sales license from Health Canada, and then there were pesticide issues with some other companies. Health Canada asked the company to look at some of the fertilizers they were using. Now they have to get those onto an approved list before getting their sales license. It’s just a longer review process than what was expected.

Cannabis. They’ve had their cultivation license for a long time. There should be no problem. Seem to have a well-run operation. Management is fine. Once they get the sales license, there is some good upside in the stock. This is a reasonable time to be picking away at stocks like this.

Just got its sales license. They have a dried bud business model. Management are smart and are holding back on spending their capital. It is interesting and he likes that they are not making wild expansion plans.

He owns a convertible debenture and some warrants, but is short some of the stock as a hedge against it. He does not have a particular view in the near term. He sees them as capable operators. He would put them in the upper quartile area of the sector, but believes the cultivators are generally over-valued.

Everything moved up on Monday, it felt like a compulsory buy. He used to own it but owns only debentures and warrants now. It’s a plain vanilla cannabis company--growers. They don’t plan to retail, they plan to sell to retailers. They seem to know what they’re doing, but in terms of new investments, there are others that he likes better.

He has looked closely at this and now sees them stepping out to provide high quality bud to other producers. They just signed a major contract to supply Tilray (TLRY-N), which he feels adds substantial credibility to their business model. The risk lies in them not having a distinct brand.