SPRWF - Supreme Cannabis: Long Road Ahead For A Turnaround

• Supreme Cannabis shares lost ~90% of its value since early 2019 driven by its costly strategic mistake of focusing on the wholesale market.
• The company struggled for a long time before finally showing signs of improvement in the last quarter.
• It had to restructure the balance sheet which led to massive dilution and issuance of warrants that will further erode shareholder value.
• We are Neutral on the stock as its recent equity raises helped alleviate insolvency risk but we see no meaningful catalysts in the near term.

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