Supreme Completes Private Placement for $684,449 Aggregate Subscription Proceeds
JULY 30, 2015
Thursday July 30th, 2015, Toronto, ON – Supreme Pharmaceuticals Inc. (“Supreme” or the “Company”) (SPRWF – OTC) (“SL” – CSE) is pleased to announce that it has closed a private placement financing (the “Financing”) for gross proceeds of $684,449.82. Upon closing the Financing, Supreme issued 4,026,469 units (“ Units”) at a price of $0.17 per Unit. Each Unit consists of one common share (“ Common Share”) and one Common Share purchase warrant (“Warrant”). Each Warrant is exercisable for one Common Share at a price of $0.32 per share prior to July 27th, 2017, subject to an accelerated expiry period upon 30-days’ notice by the Company to the subscriber, if the Common Shares trade at or about $0.60 for any five (5) day period during the term of the Warrants.
“I am overwhelmed by the tremendous support Supreme enjoys from the local community,” stated John Fowler, President of Supreme. “We were approached by local residents and key contactors who share our vision for the future of the medical marijuana industry and want to be a part of our journey. This type of support has been invaluable for us since day one, and will continue to be essential when we are able to move forward into the operating stage of our business.”
The Company paid aggregate finder’s fees of $17,679.99 and issued 103,999 Warrants to certain arm’s-length parties in the connection with the subscriptions of certain subscribers who participated in the Financing. In addition, three employees converted debts as part of the Financing (the “Settlement”). Pursuant to the Settlement, the Company issued 233,315 Common Shares at a deemed price of $0.17 per Common Share to settle debts totalling $39,663.54. The terms of the Settlement were unanimously approved by the disinterested members of the Company’s board of directors. The Common Shares and Warrants issued pursuant to the Financing and Settlement are subject to a hold period that expires November 30, 2015.
In addition, the Company has extended the expiry date of warrants issued in connection to its private placement closed on September 22, 2015 and October 6, 2014. 4,478,465 warrants issued on September 22, 2014 with an expiry date of September 22, 2015 will now expire September 22, 2016. 897,000 warrants issued on October 6, 2014 with an expiry date of October 6, 2015 will now expire October 6, 2016.
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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 completion 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.