TORONTO, ONTARIO--(Marketwired - June 20, 2016) - Supreme Pharmaceuticals Inc. (the "Company") (OTC PINK:SPRWF) (CSE:SL) is pleased to announce that it has closed the first tranche of a non-brokered private placement (the "Financing") for gross proceeds of $3,615,880 Upon closing, the Company issued 9,039,700 units (each a "Unit") at a price of $0.40 per Unit. Each Unit consists of one common share ("Common Share") and one Common Share purchase warrant ("Warrant"). Each Warrant is exercisable for one Common Share at a price of $0.50 for a period of three years from closing.
The Common Shares and Warrants issued pursuant to the Financing are subject to a hold period that expires October 21, 2016. The Company paid aggregate finder's fees of $100,280 and issued 250,700 Warrants to certain participating dealers in connection with the Financing.
The Company will use net proceeds of the Financing for expansion of the Company's Kincardine facility and for general working capital purposes. John Fowler, CEO of Supreme stated, "one month ago we secured supply agreements with 5 Canadian medical marijuana Licensed Producers for substantially all of the expected output of "Phase 0" of our 7 acre hybrid greenhouse. Given the strong demand, we will begin "Phase 1" expansion of an additional 80,000 sq. ft. of hybrid greenhouse area. The completion of Phase 1 is projected to increase total production capacity to over 10,000 kg per annum, subject to regulatory approval."
The Company may complete a second tranche of the Financing, which may be extended to existing shareholders of the Company in accordance with the provisions of the Canadian existing shareholder exemption (the "Existing Shareholder Exemption"), as well as to other investors pursuant to other available exemptions. The Existing Shareholder Exemption is available to shareholders residing in all Canadian provinces, other than Newfoundland and Labrador. Shareholders of record of the Company as of June 20, 2016 (the "Record Date") are eligible to participate under the Existing Shareholder Exemption. Any person who becomes a shareholder of the Company after the Record date is not permitted to participate in the Financing using the Existing Shareholder Exemption but other exemptions may still be available to them. Shareholders who become shareholders after the Record Date should consult their professional advisors when completing their subscription form to ensure that they use the correct exemption.
This press release does not constitute an offer to sell or the solicitation of an offer to buy the Units in any jurisdiction where prohibited.
Supreme is a Canadian publically traded company committed to becoming a leading supplier of affordable medical cannabis achieved by applying commercial agriculture practices to medical cannabis production. Supreme's flagship facility is a 342,000 sq. ft. hybrid greenhouse located in Kincardine, Ontario, which has been designed to maximize production efficiencies allowing the Company to pass savings along to its future patients. Supreme is the first business-to-business focused Canadian Licensed Producer, offering finished goods and genetics to federally licensed Canadian Licensed Prodcuers. Interested parties shoud contact email@example.com
This news release contains forward-looking statements. The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe" and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. These risks and uncertainties include, but are not limited to, the Company's ability to satisfy the conditions associated with its cultivation license, the Company's ability to obtain a sales license and the related timing considerations, assumptions relating to the intended uses of proceeds from the Financing, the availability of further financing, consumer interest in its products, competition, regulation, operational and technological risks, including uncertainties relating to the quality and quantities of production, and anticipated and unanticipated costs and delays. These statements speak only as of the date of this news release. Actual results could differ materially from those currently anticipated due to a number of factors and risks including various risk factors discussed in the Company's disclosure documents which can be found under the Company's profile on www.sedar.com. This news release contains "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbour provisions of the Private Securities Litigation Reform Act of 1995.