Supreme Updates Option to Purchase Press Release and Announces Private Placement
25 Mars 2014 - 2:57PM
Marketwired
Supreme Updates Option to Purchase Press Release and Announces
Private Placement
CALGARY, ALBERTA--(Marketwired - Mar 25, 2014) - Supreme
Pharmaceuticals Inc. (the "Company") (TSX-VENTURE:SL)(OTCBB:SPRWF)
is pleased to announce that the Company has signed a conditional
agreement with an arms-length South Okanagan-based company, whereby
the Company has the option to purchase its producing medical
marijuana business until March 23, 2015 for the sum of $1,000,000,
payable in cash and shares, subject to regulatory approval. The
Company is currently in a 10-business day due diligence period and
if satisfied, Supreme will, subject to prior approval of the TSXV,
make a $100,000 option payment.
The medical marijuana industry in Canada is undergoing massive
reform as a result of the new Marijuana for Medical Purposes
Regulation ("MMPR") regulation scheduled to come into effect April
1st, 2014, or some date thereafter-pending legal review. The vendor
of the optioned medical marijuana business (the "Vendor") is
currently producing marijuana under Medical Marijuana Access
Program ("MMAP") licences and with Friday's court injunction to
extend the MMAP program, will be able to continue to operate under
its current licences past the April 1st, 2014 deadline until a
trial can be held to argue this further, currently anticipated to
be in 9 months. The Vendor will be applying for the new MMPR
licence to produce and sell commercial medical marijuana, a process
expected to take several months. Health Canada has currently issued
a total of twelve commercial licences and has advised that it will
be issuing additional licences. The Company's initial assessment is
that the Vendor and its advisors meet the criteria set forth by the
government due to its advanced business plan and key industry
veterans involved. The Vendor is a past and current producer and
has been in business since July of 2013 with 4 licenses for
personal production. There is no assurance that such a license will
be granted to the Vendor, which will be a key condition in the
Company's decision as to whether to exercise the option or not.
British Columbia is known for its high quality marijuana
production. Health Canada has reported that British Columbia
produces 69.4% of the medical marijuana plants authorized for
production within the country. British Columbia is prolific for
both its agriculture and horticulture. The climate for growing
marijuana in the Okanagan is arguably the best in the world.
Analysts and industry experts estimate that this new commercial
scale medical marijuana industry could reach $2.6 billion by
2016.
President and CEO Mr. David Stadnyk states, "We are excited to
be able to enter into an agreement to purchase a business that is
established and has a realistic chance of acquiring a major MMPR
commercial license from Health Canada. We are continuing to
evaluate additional opportunities in both Canada and the United
States, which will give our shareholders upside potential. We
believe this industry is in its infancy and we are excited to be
able to get into the business in the industry's early days. We
think that this life science field complements the pharmaceutical
and bio-medical devices that we are currently reviewing, and that
2014 will be a satisfying one for our shareholders."
The Company also announces that it is undertaking a non-brokered
private placement of up to $500,000 by the issuance of units at
$0.075, with each unit consisting of one common share and one
warrant entitling the holder to purchase one additional share for 2
years at $0.10. The Company will pay commissions to those arms
length finders assisting in the private placement of 8% cash, and
8% in finder's warrants to purchase shares at $0.075 for 2 years.
Proceeds will be used for general working capital.
The Company will issue a further press release when further
information becomes available for publication.
SUPREME PHARMACEUTICALS INC.
David Stadnyk, President & CEO
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
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 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 harbor
provisions of the Private Securities Litigation Reform Act of
1995.
Supreme Pharmaceuticals Inc.David StadnykPresident &
CEO(647)
340-6744info@supremepharmaceuticals.comwww.supremepharmaceuticals.com
(TSXV:SL)
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