Penny stock Supreme Cannabis Company (OTCMKTS:SPRWF) was up nearly 25% in intraday trading today, yet another beneficiary of bullish momentum in the sector at large in recent weeks. More than 25.5 million shares had traded on the day at time of writing, compared with an average daily trading volume of 3.1 million.
Supreme Cannabis is a Canadian producer of medical cannabis, operating primarily in that market but additionally in Israel and Australia. The company also trades on the Toronto Stock Exchange under the ticker FIRE.
Founded in 1979, Supreme Cannabis Company has a market capitalization of $273 million and recently raised nearly $23 million via overnight marketed public offering.
The boost in SPRWF comes at a time of increased investment in cannabis equities, as the prospect of U.S. legalization becomes more likely. It also appears that Reddit investors have turned their attention from heavily shorted stocks to cannabis, per InvestorPlace.com’s William White. Sector peer and fellow penny stock Sundial Growers (NASDAQ:SNDL) has also seen serious upward momentum this week, suggesting an appetite for lower-priced equities in the sector.
Supreme Cannabis is set to report earnings for the second quarter of fiscal year 2021 in just two days. The company previously beat out analyst expectations for Q1 FY 2021. In November 2020, analysts suggested SPRWF was close to the “breakeven point” and would turn a profit starting in 2021.
On the date of publication, Vivian Medithi did not have (either directly or indirectly) any positions in the securities mentioned in this article.