APRIL 17, 2015
Friday April 17, 2015, Toronto, ON – Supreme Pharmaceuticals Inc. (the “Company“) (SPRWF – OTC) (“SL” – CSE) announced today that it increased the size of its previously disclosed non-brokered private placement of secured convertible debentures (the “Financing“) in response to greater than anticipated investor demand and has closed the books on approximately $1.4 million of subscriptions. As of April 17, 2015, Supreme is no longer accepting subscriptions for the Financing and anticipates closing the Financing on or about April 23, 2015.
“Management is gratified to see such a positive response from the investment community,” stated John Fowler, President of the Company. “We are thrilled to be in a position to close the Financing on an oversubscribed basis so quickly. With the Financing, Supreme is well positioned to continue to develop our post-license business plan and execute on our long term operational objectives.”
Currently, the Company continues to develop its business by engaging with various health care providers, patient groups and potential wholesale partners. The Company believes these relationships will increase its ability to generate additional revenues from both wholesale and retail sales when operations commence.
The Company has also continued to refine its operational plans at the Kincardine greenhouse. Mr. Fowler stated, “While we await our pre-license inspection, management has been working diligently to train our team on the procedural aspects of medical cannabis production while constantly refining our production program to improve operational efficiencies.”
In relation to the previously announced management transition to Ontario, Tatiana Kovaleva will be resigning as the Company’s Chief Financial Officer. Cailin Ghelsen, the Director of Finance for the Company’s wholly owned subsidiary 8528934 Canada Ltd. (“AMMCan”), will be appointed as the interim Chief Financial Officer. Peter Herburger, the CEO of AMMCan, will be appointed as Supreme’s Director of Operations.
Completion of the Financing remains subject to standard closing conditions including the execution of definitive transaction documentation and customary post-closing filings with the Canadian Securities Exchange. Further details concerning the Financing may be found in the Company’s Form 9 filed on the Canadian Securities Exchange website.
Supreme is a Canadian publically traded company committed to becoming a leading supplier of affordable medical cannabis achieved by applying commercial agriculture practices to medical cannabis production. Supreme’s flagship facility is a 342,000 sq. ft. hybrid greenhouse located in Kincardine, Ontario, which has been designed to maximize production efficiencies allowing the Company to pass savings along to its future patients.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.
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 anticipated completion of the Financing, timing on competition of the MMPR License conditions for its Southern Ontario facility 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 final MMPR licenses and put the same into production. 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.