South Okanagan Producing Facility
Terms of The Option
Supreme Pharmaceuticals Inc. currently has an option to purchase the business from the Vendor for the total of $1.25M in cash and treasury shares. The company has already given an initial $150,000.00 in cash and $100,000.00 in shares to acquire the option.
About the Facility
As of the date of April 2014, the Vendor's business involves the growing of marijuana indoors through hydroponic processes for personal use in accordance with the MMAR. The Vendor began production in May 2013. Should the Vendor be successful in its application to become a licensed Producer, it will initiate a client registration process with the goal of commencing the sale and distribution of its products in late 2014.
The Vendor currently owns its own facility in Okanagan Falls, British Columbia. The Vendor has cost effectively facilitated Personal-use Production License holders production of monthly crops of approximately 16,000 grams/month of medical marihuana in full compliance with all regulatory authorities. In the application for the MMPR, the company has applied for a significantly larger amount for commercial production.
The medical marijuana currently produced by private license holders requires a strictly controlled and augmented growing environment tconsistently reach optimal plant characteristics in 90 days. The Vendor has designed and constructed 3 indoor purpose specific greenhouses, each of which are planted monthly, and harvested at 90 days.
Each greenhouse is fully climate controlled, with all key growing elements monitored and computer controlled to ensure consistent production. There are production elements, which require brief manual monitoring and intervention on a daily basis, but all key environmental functions are electronically controlled. The details of the process are highly commercially sensitive and valuable, and will not be disclosed until a full sale transaction is concluded.
The facility has been built to be fully compliant with all relevant building and safety requirements. All electrical, plumbing, security, and related plant and equipment are built to full commercial standards.
Facility 2: Southern Ontario
Southern Ontario Green House Facility
Supreme has closed its purchase of a 342,000 square foot green house facility. 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.
Facility Purchase Terms
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.
Confirmation of AMMCAN being the acquisition for Facility 2:
The names below in the filings are confirmed to be with Ammcan:
Local media sources the day after Green Rush Conference on June 27th:
This one has video of Facility 2
Interview with CEO Stadnyk and John Fowler
This confirms what Stadnyk says the community is on board