Supreme Cannabis Prices $20 Million Overnight Marketed Public Offering

Published: January 27, 2021

Supreme Cannabis Prices $20 Million Overnight Marketed Public Offering

The Supreme Cannabis Company, Inc. announced the pricing of its previously announced overnight marketed public offering of units of the Company at a price of $0.19 per Unit. The underwriters for the Offering have agreed to purchase 105,260,000 Units from the Company for total gross proceeds of approximately $20 million.

Each Unit will be comprised of one common share of the Company (a “Common Share”) and one half of one common share purchase warrant of the Company (each full common share purchase warrant, a “Warrant”). Each Warrant will be exercisable to acquire one common share of the Company (a “Warrant Share”) for a period of 36 months following the closing date of the Offering at an exercise price of $0.23 per Warrant Share, subject to adjustment in certain events.

BMO Capital Markets is the sole bookrunner for the Offering. The Offering is expected to close on or about January 29, 2021, and will be subject to market and other customary conditions, including approval of the Toronto Stock Exchange.

In addition, the Company has granted the underwriters a 30-day option to purchase up to an additional 15% of the Units offered in the Offering on the same terms and conditions (the “Over-Allotment Option”). The Over-Allotment Option may be exercised in whole or in part to purchase Common Shares, Warrants or Units as determined by the Underwriters.

The net proceeds from the Offering will be used to fund growth initiatives, as a reserve for strategic opportunities, and for working capital and general corporate purposes.

The Units will be offered in each of the provinces of Canada, excluding Quebec, pursuant to a prospectus supplement to the Company’s short form base shelf prospectus dated April 22, 2020 (the “Base Shelf Prospectus”). The Units will not be offered or sold in the United States or to U.S. persons except pursuant to Rule 144A or in such other manner as to not require registration under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”).

This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States,
The Supreme Cannabis Company, Inc is a diversified portfolio of distinct cannabis companies, products and brands. Since 2014, the Company has emerged as one of the world’s most premium producers of recreational, wholesale and medical cannabis products.

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