|By Marketwired .||
|April 22, 2014 04:00 AM EDT||
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 04/22/14 -- Supreme Pharmaceuticals Inc. (the "Company") (OTCBB: SPRWF)(CSE: SL) is pleased to announce that after completion of its due diligence and the completion of other conditions, it has acquired the previously announced option with respect to the producing medical marijuana facility in the South Okanagan for $150,000.00 in cash and $100,000.00 in common shares of the Company at a deemed price of $0.05 per share, subject to regulatory approval.
About the Facility
The South Okanagan based facility has been in production since May of 2013. The current operator of the facility has successfully and cost effectively facilitated personal license holders' production of monthly amounts of medical marijuana in full compliance with all regulatory authorities. The facility includes three green houses, a purpose-designed drying room, processing machinery, an office, and appropriate indoor equipment storage. All electrical, plumbing, security, and related plant and equipment are built to full commercial standards.
The philosophy of the current operator is "quality over quantity". The facility strives to produce healthy, robust marijuana with high THC concentrations rather than significant quantities of a lesser quality product.
The MMPR application is nearly complete and it is anticipated that it will be submitted by the end of April 2014. The application is for a production licence of 45 kilograms per month of medical marijuana to be produced in a significantly larger facility. There is no guarantee that the application for the MMPR licence will be successful.
Terms of the Option agreement
The option to purchase the producing medical marijuana business expires 60 days after notice that a conditional MMPR license has been granted. The purchase price is $1.25-million, payable in cash and common shares, subject to regulatory approval.
President and CEO, David Stadnyk stated: "After extensive due diligence on the industry and the facility, I am pleased to report that we have acquired the option on the facility. This is pivotal step forward for the Company in securing a non-resource asset and making the medical marijuana field our primary focus. The next milestone for the Company is assisting with the submission of the application for the MMPR license on this facility."
SUPREME PHARMACEUTICALS INC.
David Stadnyk, President & CEO
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 exercise of the option and the issuance of the MMPR license. 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 exercise the option, acquire any producing facility and the facility's inability to acquire a 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 harbor provisions of the Private Securities Litigation Reform Act of 1995.