TORONTO, ONTARIO--(Marketwired - Aug. 30, 2016) - Supreme Pharmaceuticals Inc. (the "Company" or "Supreme") (CSE:SL)(OTC PINK:SPRWF) is pleased to announce it has closed the third tranche of its previously announced non-brokered private placement (the "Financing") for proceeds of $10,610,625 and aggregate proceeds from three tranches of $14,949,755. Pursuant to the Financing, the Company issued an aggregate 37,374,388 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 of the corporation at a price of $0.50 for a period of three years from closing. The Company will use net proceeds of the Financing for the expansion of the Company's Hybrid Greenhouse facility and for general working capital purposes.
"This Financing represents a big step in the growth of Supreme," said John Fowler, CEO of Supreme. "We are well positioned to complete our Phase 1 expansion of the Hybrid Greenhouse to satisfy wholesale demand in excess of current capacity. The participation from existing shareholders, directors, management and local investors from Kincardine demonstrates our stakeholders' confidence in our organization and business plan. We are fortunate to have such a strong and supportive shareholder base moving forward."
The Common Shares and Warrants issued pursuant to the Financing are subject to a hold period that expiries December 31, 2016. In aggregate, the Company paid finder's fees of $365,539 and issued 906,349 Warrants across the three tranche closings.
In addition, the Company issued 4,123,783 stock options (each an "Option") to various employees, directors and consultants pursuant to the Company's Employee Stock Option Plan (the "Plan"). Each Option has an exercise price of $0.75 and is exercisable at any time prior to August 29, 2021 subject to the terms and conditions of the Plan. The Company also triggered the forced conversion of the remaining $410,000 principal amount of Secured Convertible Debentures issued April 23, 2015 through the issuance of 2,411,765 Common Shares and will proceed to discharge the security previously granted in favour of the holders of Secured Convertible Debentures.
Supreme is a Canadian publicly traded company committed to becoming a leading supplier of affordable medical cannabis through its wholly-owned subsidiary 7 ACRES (formerly AMMCan). 7 ACRES is a federally licensed producer of medical cannabis pursuant to the ACMPR (formerly the MMPR) operating a 342,000 sq. ft. hybrid greenhouse facility. The Hybrid Greenhouse combines the best technology of indoor production with the efficiencies and sustainability of a greenhouse, in a single large-format production footprint. Please visit www.supreme.ca and www.7acres.com for more information.
FORWARD LOOKING INFORMATION
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, the ability to satisfy conditions to closing of the proposed materials supply transactions, performance by the Company and counter-parties of their obligations under the materials supply transactions, 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.