Supreme Pharmaceuticals Acquires Ontario Greenhouse Complex for Future Medical Marijuana Production
May 23 2014 - 9:00AM
Marketwired
Supreme Pharmaceuticals Acquires Ontario Greenhouse Complex for
Future Medical Marijuana Production
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.
Supreme Pharmaceuticals Inc.Investor Relations430-580 Hornby
Street, Vancouver BC, V6C 3B6(647)
340-6744info@supremepharmaceuticals.comwww.supremepharmaceuticals.com