Source: Supreme Pharmaceuticals Inc / Press Release / Jan 23, 2015
VANCOUVER, BRITISH COLUMBIA–(Marketwired – Jan. 23, 2015) –
NOT FOR DISSEMINATION IN THE UNITED STATES. FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAW.
Supreme Pharmaceuticals Inc. (“Supreme” or the “Company”) (CSE:SL) is pleased to announce that it has closed a private placement financing (the “Financing“) on an oversubscribed basis for gross proceeds of $257,634.96. Upon closing the Financing, Supreme issued 780,712 units comprised of 780,712 common shares in the Company (“Common Shares“) and 390,356 Common Share purchase warrants (“Warrants“) at a price of $0.33 per unit. Each Warrant is exercisable for one Common Share at a price of $0.50 per share prior to January 23, 2017, subject to an accelerated expiry period upon 30-days notice by the Company to the subscriber, if the Common Shares trade above $0.70 for any five (5) day period during the term of the Warrants.
“This private placement represents another manifestation of the tremendous support we have enjoyed from the Kincardine community,” stated John Fowler, President of the Company. “We were approached by a number of local residents and contractors who wanted to participate in the Company’s success by investing in the private placement. That interest and enthusiasm resulted in the Company raising more funds than initially expected. This type of backing, and the general support of the Kincardine community, is one of our greatest assets. It has allowed us to move quickly through the pre-license phase of our business and leaves us excited for what lies ahead.”
The Company paid aggregate finders’ fees of $5,942.92 and issued 8,794 Warrants to certain arm’s-length parties in the connection with the Financing. The Common Shares and Warrants issued pursuant to the Financing are subject to a hold period that expires May 23, 2015. Following closing, Supreme has 78,252,201 Common Shares issued and outstanding. Proceeds will be used for general working capital purposes.
FORWARD LOOKING INFORMATION
This news release contains forward‐looking statements and forward‐looking information within the meaning of applicable securities laws. These statements relate to future events or future performance. All statements other than statements of historical fact may be forward‐looking statements or information. More particularly and without limitation, this news release contains forward‐looking statements and information relating to the use of proceeds of the Financing, as well as the Company’s corporate strategy. The forward‐looking statements and information are based on certain key expectations and assumptions made by management of the Company, including, without limitation, the Company’s ability to carry out its business plan following the issuance of the required licenses by Health Canada. Although management of the Company believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward‐looking statements and information since no assurance can be given that they will prove to be correct.
Forward-looking statements and information are provided for the purpose of providing information about the current expectations and plans of management of the Company relating to the future. Readers are cautioned that reliance on such statements and information may not be appropriate for other purposes, such as making investment decisions. Since forward‐looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the Company’s ability to identify and complete suitable acquisitions to further the Company’s growth as well as risks associated with the medical marijuana industry in general such as operational risks in development and production delays or changes in plans with respect to development projects or capital expenditures; the uncertainty of the capital markets; the uncertainty of receiving the required licenses, production, costs and expenses; health, safety and environmental risks; marketing and transportation; loss of markets; environmental risks; competition; incorrect assessment of the value of the potential market; ability to access sufficient capital from internal and external sources; failure to obtain required regulatory and other approvals and changes in legislation, including but not limited to tax laws and related regulations. Accordingly, readers should not place undue reliance on the forward‐looking statements, timelines and information contained in this news release. Readers are cautioned that the foregoing list of factors is not exhaustive.
The forward‐looking statements and information contained in this news release are made as of the date hereof and no undertaking is given to update publicly or revise any forward‐looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws or the Canadian Securities Exchange. The forward-looking statements or information contained in this news release are expressly qualified by this cautionary statement.
Supreme Pharmaceuticals Inc.