For the South Okanagan facility, the company paid $150,000 in cash and 2.0 million common shares for the option to acquire the asset. The option will expire 60 days after receiving notice that a conditional commercial production license under Health Canada’s new regulations has been granted. If Supreme exercises the option to purchase, it will have to pay $1.25 million in cash and common shares.
Supreme is not the only one to sniff out the potential in the medical marijuana space, with a flood of new entrants — listed on both the Canadian Securities Exchange the TSX Venture Exchange — emerging in the past few months, including GreenBank Capital (CSE:GBC), Enertopia (CSE:TOP), Lexaria (CSE:LXX), Abattis Bioceuticals (CSE:ATT) and Next Gen Metals (CSE:N), among many others.
Health Canada predicts the burgeoning industry will be worth some $1.3 billion by 2024. Earlier in April, Tweed Marijuana (CVE:TWD), one of the 12 producers licensed so far by Health Canada, listed on the Toronto Venture Exchange to become Canada’s first publicly traded medical marijuana company, and is already up more than 7,200% since listing on April 4. Its marijuana, which is expected to be ready for sale imminently, is produced out of a converted Hershey’s factory in Smiths Falls, Ontario.