VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 23, 2014) - Supreme Pharmaceuticals Inc. ("Supreme" or the "Company") (CSE:SL)(OTCBB:SPRWF) is pleased to announce that subsequent to its visit to the 342,000 square foot green house facility in Southern Ontario, Supreme has closed its purchase. The facility is located approximately 100 miles outside of Toronto. This facility is where production will commence after installation of the required security measures and subsequent receipt of final MMPR approval. The Company has started the process of upgrading the property. The facility is located in a specially created high energy use industrial park. It is located next to an unlimited supply of electricity at a very competitive rate, has year round road access and is conveniently located in respect to shipping logistics. It appears that all local use permits are in place such that production can commence immediately upon receipt of the final MMPR license.
Facility Purchase Terms
The total purchase price of the facility was $4,500,000, of which Supreme paid $1,000,000 on closing out of available funds, and assumed a vendor mortgage of $3,500,000, payable on the second anniversary date from closing. No interest will accrue in the first year, but the mortgage bears interest at 7% during the remaining year.
Private Company Acquisition
The Company is now in the process of its due diligence review and negotiations of final agreements in respect to the previously announced acquisition of the private company that holds the pre-build MMPR license covering all 342,000 square feet of the just purchased facility. It is expected that this acquisition will close by the end of May, 2014.
Management stated: "We are pleased that this first step has been completed in Supreme achieving its goal of producing and selling medical marijuana. While there is still significant work to be done, this bodes well for the Company being able to execute its business plan."
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. This news release includes forward-looking statements with respect to the up grade of the facility, the acquisition of the private company, the timing on completetion of the MMPR license conditions and the start of production. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. 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 and such factors as the Company failing to acquire the private company, or to upgrade the facility and put the same into production in accordance within the terms of the MMPR license. 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.