Supreme Pharmaceuticals (CSE:SL) says it will raise up to $1.0 million via a non-brokered private placement financing, with the funds to be used for the continued development of its Kincardine medical marijuana facility.
The company will issue up to 3.12 million units at a price of 32 cents apiece. Every unit will be made up of one common share, and one half of a share purchase warrant, with each whole warrant entitling the holder to buy an additional share for 50 cents, for a period of two years from closing.
The offering is expected to close November 17.
The news comes on the heels of Supreme raising a total of $2.6 million from a two-part financing earlier this month. The Vancouver, BC-based company will put all 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.
In September, 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.
Late last month, 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.