Supreme Pharmaceuticals (CSE:SL) has closed the first tranche of its financing announced late last month, raising a total of almost $1 million in proceeds for the development of its Kincardine medical marijuana facility.
The company issued 3.017 million units, made up of 3.017 million common shares and 1.5 million share warrants, at a price of 32 cents apiece. Every warrant can be exercised for one additional common share at a price of 50 cents for a period of two years.
Supreme said company insiders, including directors and senior officers, purchased a total of 1.3 million units in the latest tranche.
The offering comes on the heels of Supreme raising a total of $2.6 million from a two-part financing last 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.
Supreme says it is expecting a 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.
Last week, Supreme said its medical marijuana facility in the South Okanagan, BC was rejected by Health Canada for a license to produce under the new regulatory regime. The company stood by its view that the site meets the criteria set forth by Health Canada with respect to acceptable locations and zoning, and is currently investigating its options.