MARCH 24, 2014
March 24th, 2014, Calgary, AB – Supreme Pharmaceuticals Inc. (the “Company”) (SPRWD – OTC) (“SL” – TSX.V) 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.
About Supreme Resources Ltd.:
Supreme Resources Ltd. is a junior exploration company with advanced base and precious metals projects located in producing mining districts of British Columbia, Canada. Supreme Resources’ goal is to increase shareholder value by developing exploration projects that have the potential of becoming new discoveries.
Further news will be forthcoming in the near future.
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Statements in this press release other than purely historical factual information, including statements relating to revenues or profits, or the Company’s future plans and objectives, or expected sales, cash flows, and capital expenditures constitute forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company’s business, including risks inherent in the technology history. There can be no assurance that such forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on such statements. Except in accordance with applicable securities laws, the Company expressly disclaims any obligation to update any forward-looking statements or forward-looking statements that are incorporated by reference herein. This news release does not constitute an offer to sell, or a solicitation of an offer to buy any of the Company’s securities set out herein in the United States, or to, or for the benefit or account of, a U.S. Person or person in the United States.