TORONTO, ONTARIO--(Marketwired - July 15, 2016) - Supreme Pharmaceuticals Inc. (the "Company" or "Supreme") (CSE:SL)(OTC PINK:SPRWF) is pleased to announce it has closed the second tranche of its previously announced non-brokered private placement (the "Financing") for proceeds of $723,250 and aggregate proceeds from both tranches of $4,339,130. Upon closing, the company issued 1,808,125 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 Common Shares and Warrants issued pursuant to the Financing are subject to a hold period that expiries November 15, 2016. The company paid aggregate finders fees of $12,750 and issued 24,375 Warrants to certain participating dealers in connection with the financing.
The Company will use net proceeds of the Financing for the expansion of the Company's Kincardine Hybrid Greenhouse facility and for general working capital purposes. The Company may complete a third tranche of the Financing.
In addition, the Company is pleased to announce it has entered into a sixth Letter of Intent ("LOI") with respect to the long-term supply of dried cannabis to a Licensed Producer (as such term is defined in the Marihuana for Medical Purposes Regulations). The LOI is on the same terms and subject to the same conditions as the Company's initial 5 LOIs announced on May 20, 2015. For further information please see the Company's May 20, 2016 news release.
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 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 marijuana pursuant to 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.
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.