Supreme Pharmaceuticals completes $40.25M bought deal

Supreme Pharmaceuticals



News Release

November 14, 2017 TSXV: FIRE
Not for dissemination in the United States or through U.S. newswire services

Supreme Pharmaceuticals Closes $40.25 Million Bought Deal Private Placement of Convertible Debenture Units

Supreme Pharmaceuticals Inc. (“Supreme” or the “Company”) (TSXV:FIRE) is pleased to announce the closing of its previously announced bought deal private placement of 40,250 convertible debenture units (the “Convertible Debenture Units”), including the exercise of the Underwriters’ over-allotment option (the “Offering”), with a syndicate of underwriters, led by Canaccord Genuity Corp., including Beacon Securities Limited, Cormark Securities Inc., Eight Capital, GMP Securities L.P., and PI Financial Corp., for gross proceeds of approximately $40.25 million.

Each Convertible Debenture Unit, at a price of $1,000, is comprised of $1,000 principal amount of 8.0% senior unsecured convertible debentures (the “Convertible Debentures”) and 313 common share purchase warrants (the “Warrants”) of the Company. Please refer to the Company’s news releases dated October 17 and 18 for further details on the terms of the Offering.

The Company intends to use the net proceeds of the Offering to partially fund the development of its facilities in Kincardine, Ontario and for general corporate purposes.

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.

About Supreme

Supreme is a Canadian publicly traded company committed to becoming a leading cultivator and distributor of sun grown cannabis through its wholly-owned subsidiary 7ACRES. 7ACRES is a federally licensed producer of medical cannabis pursuant to the ACMPR operating inside 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.

John Fowler, CEO and Director
Forward Looking Statements

Contact Information
Investor Relations
Jenni Byrne
Bayfield Strategy, Inc.
Phone: 416.466.6265 Email: IR@supreme.ca Website: www.supreme.ca

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.