Today is the day. Big benchmark for investor confidence. Good luck!!
Supreme Pharmaceuticals (CVE:SL) shares jumped on Thursday after the company said it will use the full seven business days of the extension it received to complete the due diligence on its proposed acquisition of a producing medical marijuana facility in the South Okanagan.
Shares climbed 15.4% in early deals this morning, to 7.5 cents on the TSX Venture Exchange.
The company said this means it will report news of a final decision regarding the acquisition on Tuesday, April 15.
In the statement released late Wednesday, it apologized to investors for the "misperception" from its prior press release that a decision would be made as of April 10.
It stressed that the due diligence process thus far has been "positive", and is moving ahead smoothly.
Supreme announced last month that it signed a conditional deal to buy a medical marijuana-producing facility for up to 12 months for a total of $1.0 million in cash and shares. If the due diligence is satisfactory, Supreme will make a $100,000 option payment, it said.
The medical marijuana business has been a booming sector for Canadian juniors lately, with one after the other making their way into the arena in preparation for a massive reform from the newly established Marijuana for Medical Purposes Regulations (MMPR).
The vendor of the optioned medical marijuana business is currently producing the drug under the old MMAP license, Supreme said, but it added that it has a realistic chance of acquiring a major MMPR commercial license from Health Canada given that it is an established business.
