Proceeds from the one-year, 12% fixed rate, interest-only mortgage were used to refinance a prior vendor take-back mortgage with respect to its wholly owned subsidiary, 8528934 Canada Ltd. (7 Acres).
Supreme Pharmaceuticals CEO John Fowler explained that this was a significant milestone for the company. "The hybrid greenhouse is exceeding performance expectations with a high-quality first crop nearing harvest in the 16,500-square-foot phase zero, while we expand the production area by 80,000 square feet into phase one."
The greenhouse is dedicated to growing medical-use marijuana and the company has agreements with five licensed producers. After completion of phase one of the project and subject to regulatory approval, Supreme expects total production capacity to rise to over 10,000 kilograms per year.
Supreme Pharma shares were up 2% at C$0.50 in Toronto on Monday.