Supreme Pharmaceuticals (OTCBB:SPRWF) (CSE:SL) says it has closed the final tranche of its private placement financing, raising a total of $2.6 million in proceeds from two parts.
The company issued a total of 10.45 million common shares and 5.22 million warrants in the two tranches, of which 1.79 million common shares and 897,000 warrants were issued in the last tranche (at 25 cents per unit) for close to $449,000 in proceeds.
Each warrant can be used to buy an additional common share of the company at a price of 50 cents, up until October 6 of next year.
The Vancouver, BC-based company will put the money towards the development of its Kincardine medical marijuana facility, which is approaching the production phase.
Due to strong support from the local community, Supreme has been able to move quickly to implement its proposed plan to produce up to 24 million grams of medical marijuana, for which it received conditional pre-approval from Health Canada in January.
To move to post-license production status, the company has to adopt the high-level security measures required by Health Canada at the 342,000 square foot operation. Health Canada also has to perform a final inspection of the facility.
Last month, Supreme said that it anticipates being ready for the pre-license inspection by Health Canada to verify its compliance with the requirements of the new MMPR (Marijuana for Medical Purposes Regulations) program in November.
Given the size of the facility, Supreme will bring on production gradually, tailoring output to meet the strain and volume demands of the market.
In late September, Supreme also appointed start-up maven Chris Bechtel to its advisory board as the company gets ready to usher in a new development phase. Bechtel launched a small oil and gas business in Houstun Texas in 1983 that was sold to in 2006 to Weatherford International, one of the largest global providers of oil and gas services.
Bechtel also has experience in the medical marijuana industry, after investigating the medical benefits of cannabis for an immediate family member. He has since become a private investor in over a half a dozen companies in the cannabis sector, as well as become a consultant and advisor to these businesses.