VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 16, 2014) - Supreme Pharmaceuticals Inc. ("Supreme" or the "Company") (CSE:SL)(OTCBB:SPRWF) is pleased to announce that senior management of the target company and of Supreme will visit the 342,000 square foot facility in Southern Ontario early next week, of which Supreme currently has the option to purchase. The facility is located approximately 100 miles outside of Toronto. This visit is part of the Company's due diligence on the facility where production is planned to commence upon implementation of the required security measures and receiving final MMPR approval.
Facility Purchase Terms
Supreme would like to clarify the property payment terms from the past press release dated May 13th, 2014.
Supreme has advanced an initial $250,000 to the current owner of the facility and must advance an additional $750,000 by May 22, 2014 to close the transaction. The Company has sufficient funds on hand to do so. The total purchase price of the facility is $4,500,000. If Supreme makes the second payment on May 22, 2014, the Company will own the property with 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 will bear interest at 7% during the remaining year.
Management stated: "We are confident that the facility will be able to service a large grow operation from the details made out in the approved pre-build MMPR application, but will be inspecting the property in person. We will keep our community updated."
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 acquisition of the Facility, the timing on completion 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 exercise the option, acquire 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.