Supreme Pharmaceuticals Inc. Closes Corporate Acquisition
June 03 2014 - 8:00AM
Marketwired
Supreme Pharmaceuticals Inc. Closes Corporate Acquisition
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jun 3, 2014) -
Supreme Pharmaceuticals Inc. ("Supreme" or the "Company")
(OTCBB:SPRWF)(CSE:SL) is pleased to report that the Company has
closed the previously announced arms-length acquisition of a
Southern Ontario based company (the "Target Company") that holds a
pre-build Marijuana for Medical Purposes Regulations licence ("MMPR
Licence"). Under the terms of the MMPR Licence, the Target Company
can build out and operate the recently purchased 342,000 square
foot facility capable of producing up to 24,000,000 grams (24,000
kilograms) of medicinal marijuana per year.
To complete the licensing requirement and move from pre-build
status to post-licence production, the Target Company must complete
the installation of the required security measures. Once Health
Canada completes its final inspection of the facility, the Target
Company will be granted an MMPR licence. It is anticipated that
initial production could commence by the fourth quarter of 2014.
The Target Company anticipates it will take 90 days to construct
and implement the required security measures. The construction
project is under way.
Terms of the Target Company Acquisition
The Company has agreed to issue a total of 93,211,063 common
shares at a deemed price of 0.07 per share, half of which to be
issued on closing and the other half upon granting of the full MMPR
Licence. The parties have entered into an escrow agreement pursuant
to which 70,389,957 shares will be released over a 3 year period in
15% tranches every six months, the first release being on December
1, 2014. Neither control of or the board of Supreme will
change.
Management stated: "This first acquistion by Supreme is a very
real step in becoming a medical marijuana producer in Canada. This
project has both the scale and the timing to make the Company one
of the leaders in this new field. While we continue to look at
additional acquisitions, our immediate focus is to get this
facility into production."
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 grading of the facility, 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 finish
the upgrading of 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 Relations(647)
340-6744info@supremepharmaceuticals.comwww.supremepharmaceuticals.com