Supreme Plans Second Pot Purchase

agriculture | BCbusiness

Vancouver company forges ahead with plans to move from mining to marijuana with planned $1-million purchase

Supreme Pharmaceuticals Inc. of Vancouver has signed a letter of intent to acquire an Ontario greenhouse and a company with Government of Canada pre-approval to operate a marijuana-growing facility capable of producing 24,000 kilograms of medicinal marijuana a year.
Supreme has made an initial payment of $250,000 to the unnamed company, and under the terms of the agreement must pay another $750,000 by May 22. The target company’s Marihuana for Medical Purposes, or MMPR, license from the federal government grants it permission to build a facility; final approval to produce and sell marijuana will depend on meeting specific facility upgrades and other conditions.
Supreme, formerly Supreme Resources Ltd., announced a change of name and business plan in January this year. The company’s stock is trading at seven cents today on the Canadian Securities Exchange, compared to a 52-week low of three cents.
Today’s announcement is the second potential acquisition announced by Supreme. The company announced earlier this year that it has secured the option to buy an Okanagan marijuana production facility. It paid $150,000 in cash and $100,000 in shares for the option to buy the facility for $1,250,000. The Okanagan facility has applied to the federal government for a Marihuana for Medical Purposes Regulations license.
Supreme had $63,923 cash and cash equivalents on hand at the end of 2013, but has since raised $1 million from investors exercising options to buy warrants.