Supreme Pharma (CSE: SL) (OTC: SPRWF), which began cultivating cannabis earlier this year at its 7 Acres facility in Ontario after it received its license from Health Canada on March 11th, reported the closing of a financing and the addition of another client today. The company raised an additional $723K gross proceeds on similar terms to the a previous closing announced on June 20th, bringing the total raised to $4.34mm. The company sold an additional 1.808mm units at $0.40, each of which consists of a share of common stock and a warrant to buy an additional share at $0.50. The units are not able to be sold until the expiration of a four-month lockup period.
The company, which is using the capital raised to continue expansion of its hybrid greenhouse and may raise additional funds, has a unique business model focused on selling exclusively to other licensed producers (LPs) rather than medical patients. In May, it had announced that it had signed letters of intent with five separate LPs, and today it said that it had added a sixth. Shares are up considerably over the past year but are down 16% YTD.
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