Vancouver, British Columbia--(Newsfile Corp. - June 4, 2014) - Supreme Pharmaceuticals (CSE: SL) has closed the previously announced arms-length acquisition of a Southern Ontario based company that holds a pre-build Marijuana for Medical Purposes Regulations licence. Subject to certain conditions, this allows Supreme to build out and operate its recently purchased 342,000 square foot facility, giving the company the capability to produce up to 24 million grams of medicinal marijuana per year.
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To complete the licensing requirement and move this project from pre-build status to post-licence production, the company is required to complete the installation of specific security measures. Once Health Canada completes its final inspection of the facility, the project will be granted an MMPR licence. The construction is underway, and the company anticipates it will be completed in 90 days, with initial production slated to commence in the fourth quarter of 2014.
Supreme will 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 agreed to place approximately 70 million shares into escrow, with 15% released every 6 months, starting on December 1, 2014, and continuing over a 3 year period.
Management stated: "This first acquisition 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."
The company will be participating in the upcoming GreenRush Financial Conference, to be held June 26th at the Metro Toronto Convention Centre.
For more information, please visit the company's website, www.supremepharmaceuticals.com, call 647-340-6744 or email info@supremepharmaceuticals.com.
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