Here's What We're Looking Out For From SUPREME PHARMACEUT COM NPV (OTCMKTS:SPRWF)

Back in November 2016, we covered a host of cannabis related companies. At the time, the US was in the midst of the recreational legalization ballots, and there was so much hype surrounding the space that it was tough to pick a loser. Of course, many of the companies that ran up around that period have since declined to pre-ballot prices, or worse. Some, however, have managed to hold on to the gains.One of the ones we took a look at was SUPREME PHARMACEUT COM NPV (OTCMKTS:SPRWF). This one was a bit of an against-the-grain play. It's a Canadian company, for starters, and it’s a medical marijuana focus instead of a recreational cannabis stock. Many reading will know that this latter point didn’t matter around that time – medical stocks ran up as much as recreationals did, if not more. The impact of recreational legalization in the US on Canadian entities wasn’t as clear, however, and for the most part, still isn’t.What we do know now, however, is that cannabis is set to become legal nationwide in Canada by July 2018. Legislation is being put in place as we write this, and just as the US cannabis space soared last November, so will the same market in Canada towards the end of this year, and into next – mark our words.So, against a backdrop of these elements, Supreme has managed to maintain the vast majority of the gains added to its market capitalization over the past six months. The company is currently trading at a market cap of just shy of $200 million, at a circa 20% discount to its hype-peak pricing.So what's the deal going forward?Well, we're on the lookout for Canadian cannabis stocks that are likely to run as the year matures, and this looks like a good one. For those new to the company, it operates a 7 acre grow facility close to Toronto, which is a federally licensed facility. The problem (it's a problem for now, but it's also a catalyst) is that it's licensed for grow, but not for sale. Basically, if the company wants to dry out its plants and sell them for medical marijuana distribution, it's got to get the sell license from Health Canada. To get this license it's got to prove that the cannabis is clean and nontoxic, and it's in the process of doing that right now. We noted last time we covered the stock that a seeming typo suggested that the company might be in line to pick up its sell approval, but that's not yet proven to be the case.That said, there doesn’t look to be any reason that the approval won't come, and further that it won't come near term; it's just a case of the company and the authorities, ticking boxes ahead of a decision.There's also some operational activity that points towards management's belief that approval is a formality. According to CEO John Fowler, and as part of this interview, investment in the facility over the next twelve months will come in at $50-60 million, and staff count will grow from 55 to 120. By July 2018, this is expected to expand to more than 300. These aren’t the actions of a CEO that doesn’t expect to be able to sell his product.So what's next?There's a reason this one has chugged along relatively flat for the last few months – markets are waiting on the approval before piling in and riding it to the upside. When the approval does hit press, the stock will run. As such, we're looking for any announcement that hints at a date, or an announcement of the approval itself, as a near-term catalyst.Cash on hand should be enough to cover the above-noted facility investment, but there's a good chance we'll see some dilution when the new year comes around, as management ramps up activity towards legalization day.We will be updating our subscribers as soon as we know more. For the latest updates on SPRWF, sign up below!Disclosure: We have no position in SPRWF and have not been compensated for this article.