Supreme Cannabis Announces Overnight Marketed Public Offering

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TORONTO, Jan. 25, 2021 (GLOBE NEWSWIRE) -- The Supreme Cannabis Company, Inc. (“Supreme Cannabis” or “Company”) (TSX: FIRE) (OTCQX: SPRWF) (FRA: 53S1) is pleased to announce that it has launched an overnight marketed public offering of units of the Company (the “Units”) at a price of $0.19 per Unit for gross proceeds of approximately $20 million (the “Offering”). 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.

The offering is expected to be priced in the context of the market, with the final terms of the Offering to be determined at the time of pricing pursuant to the terms of an underwriting agreement to be entered into between the Company and BMO Capital Markets, as lead underwriter and sole bookrunner, and a syndicate of underwriters (collectively, the “Underwriters”). There can be no assurance as to whether or when the Offering may be completed, or as to the actual size or terms of 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 intends to grant the Underwriters a 30-day option to purchase up to an additional 15% of the Units offered in the proposed 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”).