Supreme Pharmaceuticals Inc.
CNSX : SL

Supreme Pharmaceuticals Inc.

September 22, 2014 08:49 ET

Supreme Completes First Tranche of Previously Announced Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 22, 2014) -

NOT FOR DISSEMINATION IN THE UNITED STATES. FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAW.

Supreme Pharmaceuticals Inc. ("Supreme" or the "Company") (CSE:SL) is pleased to announce that it has closed the first tranche of its previously announced unit financing (see news releases dated August 15th and September 4, 2014) for total gross proceeds of $2,239,232.50 (the "Financing"). At closing, Supreme issued 8,956,930 Units (comprised of 8,956,930 common shares of the Company ("Common Shares") and 4,478,465 Common Share purchase warrants ("Warrants")) at a price of $0.25 per Unit. Each Warrant is exercisable for one Common Share at a price of $0.50 per share prior to September 22, 2015, subject to an accelerated expiry period upon 30-days notice by the Corporation to the subscriber, if the Common Shares trade at or above $0.70 for any five (5) day period during the term of the Warrants. Directors, senior officers and other insiders of the Corporation purchased an aggregate of 660,000 Units pursuant to the Financing. The Company paid finder's fees of $65,320 and issued 287,280 Warrants to certain arm's-length parties in the connection with the subscriptions of certain subscribers who participated in the private placement.

The Common Shares and Warrants issued pursuant to the private placement are subject to a hold period that expires January 23, 2015. Following closing, Supreme has 68,341,565 Common Shares issued and outstanding.

The Company intends to use the proceeds of the Financing for the development of the Company's Kincardine facility and general working capital purposes. Based on the number of investors who have already submitted subscription agreements for the final tranche of the Financing, Supreme anticipates moving quickly towards a second closing prior to the end of September.

FORWARD-LOOKING INFORMATION

This news release contains forward‐looking statements and forward‐looking information within the meaning of applicable securities laws. These statements relate to future events or future performance. All statements other than statements of historical fact may be forward‐looking statements or information. More particularly and without limitation, this news release contains forward‐looking statements and information relating to the use of proceeds of the private placement, as well as the Company's corporate strategy, participation in second tranche by those investors who have submitted subscription agreements to the Company but were not included in the first tranche, and having sufficient subscribers to close a second tranche. The forward‐looking statements and information are based on certain key expectations and assumptions made by management of the Corporation, including, without limitation, the Company's ability to complete the remainder of the private placement. Although management of the Corporation believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward‐looking statements and information since no assurance can be given that they will prove to be correct.

Forward-looking statements and information are provided for the purpose of providing information about the current expectations and plans of management of the Corporation relating to the future. Readers are cautioned that reliance on such statements and information may not be appropriate for other purposes, such as making investment decisions. Since forward‐looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the Company's ability to identify and complete additional suitable acquisitions to further the Company's growth as well as risks associated with the medical marijuana industry in general such as operational risks in development and production delays or changes in plans with respect to development projects or capital expenditures; the uncertainty of the capital markets; the uncertainty of receiving the required licenses, production, costs and expenses; health, safety and environmental risks; marketing and transportation; loss of markets; environmental risks; competition; incorrect assessment of the value of the potential market; ability to access sufficient capital from internal and external sources; failure to obtain required regulatory and other approvals and changes in legislation, including but not limited to tax laws and related regulations. Accordingly, readers should not place undue reliance on the forward‐looking statements, timelines and information contained in this news release. Readers are cautioned that the foregoing list of factors is not exhaustive.

The forward‐looking statements and information contained in this news release are made as of the date hereof and no undertaking is given to update publicly or revise any forward‐looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws or the Canadian Securities Exchange. The forward-looking statements or information contained in this news release are expressly qualified by this cautionary statement.

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