/NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE
SERVICES/
CSE:SL
TORONTO, Nov. 15, 2016 /CNW/ - Supreme Pharmaceuticals Inc. (the
"Company") (CSE: SL) announced today that it has entered into a revised agreement with Canaccord Genuity Corp. on behalf of
a syndicate of underwriters (the "Underwriters") to increase the size of its previously announced bought deal, private
placement of convertible debenture units to $50,000,000.
As previously announced, each Convertible Debenture Unit will consist of $1,000 principal amount
of 10% senior unsecured convertible debentures (the "Convertible Debentures") and 770 common share purchase warrants (the
"Warrants") of the Company (the "Offering"). Each Warrant will be exercisable to acquire one common share of
the Company (a "Warrant Share") at an exercise price of $1.70 per Warrant Share for a period
of three years following the Closing Date (as hereinafter defined) of the Offering, subject to the Company's right to accelerate
expiry in certain circumstances.
The Convertible Debentures will bear interest from the date of closing at 10.0% per annum, payable semi-annually on June 30 and December 31 of each year and will mature on December 31, 2019 (the "Maturity Date"). The Convertible Debentures will be convertible at the option of
the holder into Common Shares at any time prior to the close of business on the Maturity Date at a conversion price of $1.30 per Common Share (the "Conversion Price"). Beginning on the date that is four months and one day
following the Closing Date, the Company may force the conversion of all of the principal amount of the then outstanding Convertible
Debentures at the Conversion Price on 30 days prior written notice should the daily volume weighted average trading price of the
Common Shares be greater than $1.75 for any 15 consecutive trading days.
The Convertible Debentures and the Warrants comprising the Convertible Debenture Units and any Common Shares issuable upon
conversion or exercise thereof, as applicable, will be subject to a statutory hold period lasting four months and one day following
the closing date.
The Company intends to use the net proceeds of the Offering for expanding the operating footprint of the Company's Hybrid
Greenhouse facility in Kincardine, Ontario, working capital and general corporate purposes.
Closing of the Offering is expected to occur on or about December 7, 2016 (the "Closing Date"). The
Offering is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and stock exchange
approvals, including the approval of the Canadian Securities Exchange.
About Supreme
Supreme is a Canadian publicly traded company committed to becoming a leading supplier of affordable medical cannabis through
its wholly-owned subsidiary 7 ACRES (formerly AMMCan). 7 ACRES is a federally licensed producer of medical cannabis pursuant to the
ACMPR operating a 342,000 sq. ft. Hybrid Greenhouse facility. The Hybrid Greenhouse combines the best technology of indoor
production with the efficiencies and sustainability of a greenhouse, in a single large-format production footprint. Please visit
www.supreme.ca and www.7acres.com for more information.
Forward Looking Statements
Statements in this news release that are forward-looking statements are subject to various risks and uncertainties concerning
the specific factors disclosed here and elsewhere in the Company's periodic filings with Canadian securities regulators. When used
in this news release, words such as "will, could, plan, estimate, expect, intend, may, potential, believe, should," and similar
expressions, are forward-looking statements.
Forward-looking statements may include, without limitation, statements including the anticipated closing and closing date of the
Offering including the ability of the Company to satisfy closing conditions under the Offering, anticipated use of proceeds of the
Offering and the potential benefits of such investment, and other statements of fact.
Although the Company has attempted to identify important factors that could cause actual results, performance or achievements to
differ materially from those contained in the forward-looking statements, there can be other factors that cause results,
performance or achievements not to be as anticipated, estimated or intended, including, but not limited to: dependence on obtaining
regulatory approvals; limited operating history; reliance on management; requirements for additional financing; competition;
hindering market growth due to inconsistent public opinion and perception of the medical-use marijuana industry; regulatory or
political change; and other risk factors disclosed in the Company's public filings at www.sedar.com.
There can be no assurance that such information will prove to be accurate or that management's expectations or estimates of
future developments, circumstances or results will materialize. As a result of these risks and uncertainties, the results or events
predicted in these forward-looking statements may differ materially from actual results or events.
Accordingly, readers should not place undue reliance on forward-looking statements. The for-ward-looking statements in this news
release are made as of the date of this release. The Company disclaims any intention or obligation to update or revise such
information, except as required by applicable law.
The securities being offered have not been, nor will they be, registered under the United
States Securities Act of 1933, as amended, and may not be offered or sold in the United
States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the
registration requirements. This news release will not constitute an offer to sell or the solicitation of an offer to buy nor will
there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.
The Canadian Securities Exchange has not reviewed, approved or disapproved the content of this news release.
SOURCE Supreme Pharmaceuticals Inc
Image with caption: "Supreme Pharmaceuticals Inc (CNW Group/Supreme Pharmaceuticals Inc)". Image available at: http://photos.newswire.ca/images/download/20161115_C6790_PHOTO_EN_818983.jpg
