Supreme Pharma acquires Ontario greenhouse complex for future medical marijuana production

The facility is located approximately 100 miles outside of Toronto. This facility is where production will commence after installation of the required security measures and subsequent receipt of final MMPR approval.

The company has started the process of upgrading the property. The facility is located in a specially created high energy use industrial park. It is located next to an unlimited supply of electricity at a very competitive rate, has year round road access and is conveniently located in respect to shipping logistics. It appears that all local use permits are in place such that production can commence immediately upon receipt of the final MMPR license.

The total purchase price of the facility was $4,500,000, of which Supreme paid $1,000,000 on closing out of available funds, and assumed a vendor mortgage of $3,500,000, payable on the second anniversary date from closing. No interest will accrue in the first year, but the mortgage bears interest at 7% during the remaining year.

The company is now in the process of its due diligence review and negotiations of final agreements in respect to the previously announced acquisition of the private company that holds the pre-build MMPR license covering all 342,000ft2 of the just purchased facility. It is expected that this acquisition will close by the end of May 2014.