Supreme Acquires Option to Purchase Producing Medical Marijuana Facility
March 24 2014 - 3:01AM
Marketwired
Supreme Acquires Option to Purchase Producing Medical Marijuana
Facility
CALGARY, ALBERTA--(Marketwired - Mar 24, 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 for up to twelve months 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 make a $100,000
option payment.
The medical marijuana industry in Canada is undergoing massive
reform as a result of the new 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 the MMAP licence
and with Friday's court decision to extend the MMAP program will be
able to continue to operate under its current licences past the
April 1st 2014 deadline. The Vendor will be applying for the new
and much-coveted 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.
British Columbia is world renowned 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 speculate 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. Medical marijuana as an
industry is flourishing. We are continuing to evaluate additional
opportunities in both Canada and the United States, which will give
our shareholders tremendous 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
very satisfying one for our shareholders."
SUPREME PHARMACEUTICALS INC.
David Stadnyk, President & CEO
The TSX has not reviewed and does not accept 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