All figures in Canadian dollars ($) unless otherwise specified
Toronto, Ontario and Rionegro, Colombia--(Newsfile Corp. - July 4, 2024) - PharmaCielo Ltd. (TSXV: PCLO) (OTC Pink: PCLOF) ("PharmaCielo" or the "Company"), the Canadian parent of Colombia's premier cultivator and producer of dried flower and medicinal-grade cannabis extracts, PharmaCielo Colombia Holdings S.A.S., today announced financial results for the fourth quarter and year ended December 31, 2023, as well as for the first quarter ended March 31, 2024.
The Company also announced that effective July 3, 2024, its principal regulator, the Ontario Securities Commission ("OSC"), has revoked its failure to file cease trade order (the "FFCTO") that was issued on May 7, 2024. The FFCTO was issued as a result of the Company's delay in filing its audited annual consolidated financial statements for the year ended December 31, 2023, the related management's discussion and analysis of financial condition and results of operations and CEO and CFO certificates relating to the audited annual financial statements as required by National Instrument 52-109 - Certification of Disclosure in Issuers' Annual and Interim Filings (collectively, the "Required Documents") beyond the April 29, 2024 filing deadline.
The Company has filed the required documents on SEDAR and trading will resume on the TSX Venture Exchange following the dissemination of this news release.
Management Commentary
Marc Lustig, Chairman and CEO of PharmaCielo commented, "Our team has been unwavering in their efforts to drastically reduce costs and optimize operations while expanding our sales reach. The global landscape for cannabinoid-based drugs and therapeutics is expanding, and we are strategically positioned to seize opportunities in regions such as Latin America, Australia, and Europe. We've obtained the necessary export quotas for both psychoactive and non-psychoactive products and we expect to yield positive results going forward. As a major investor in the Company, I am confident that our approach will generate shareholder value."
Summary Financials - First Quarter Ended March 31, 2024
Three months ended
(000's)
March 31, 2024
March 31, 2023
Revenue
$ 240
$ 786
Adjusted EBITDA* (Loss)
$ (1,264)
$ (1,876)
Net Loss
$ (2,420)
$ (3,559)
Net Loss per Share
$ (0.01)
$ (0.02)
*Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). The term Adjusted EBITDA does not have any standardized meaning under IFRS. Therefore, it may not be comparable to similar measures presented by other companies.
For further detailed information and analysis, please see the financial statements and management's discussion and analysis for the period ending March 31, 2024, as posted at sedarplus.ca and pharmacielo.com.
Summary Financials - Fourth Quarter and Fiscal Year Ended December 31, 2023
Three months ended
Twelve months ended
(000's)
Dec 31 2023
Dec 31 2022
Dec 31 2023
Dec 31 2022
Revenue
$ 244
$ 1,513
$ 1,542
$ 5,309
Adjusted EBITDA (Loss)
$ (1,397)
$ (942)
$ (6,762)
$ (7,179)
Net Loss
$ (6,393)
$ (2,915)
$ (16,298)
$ (14,516)
Net Loss per Share
$ (0.04)
$ (0.02)
$ (0.10)
$ (0.10)
For further detailed information and analysis, please see the financial statements and management's discussion and analysis for the period ending December 31, 2024, as posted at sedarplus.ca and pharmacielo.com.
Summary of Recent Developments
Management's focus on cost reduction and containment measures to streamline the Company's operating costs continues to pay off. For the year ended December 31, 2023, the Company reduced consulting fees by $235,761, office and general expenses by $419,543, and professional fees by $235,962, all compared to the year ended December 31, 2022.
Similarly, For the quarter ended March 31, 2024, the Company reduced salaries and wages by $406,445, office and general expenses by $157,498 and consulting fees by $61,723, all compared to the quarter ended March 31, 2023.
In addition, the Company announced that the TSX Venture Exchange ("TSXV") has changed the Company's Tier classification from Tier 1 to Tier 2, effective June 20, 2024, as the Company does not meet the Exchange's Tier 1 continued listing requirements. The reclassification of the Company as a Tier 2 issuer will not result in any change to PharmaCielo's trading symbol, which will remain "PCLO".
About PharmaCielo
PharmaCielo Ltd. (TSXV: PCLO) (OTC Pink: PCLOF) is a global company, headquartered in Canada, with a focus on ethical and sustainable cultivating, processing and supply of all natural, pharmaceutical-grade medical dried cannabis flower and cannabis products to large channel distributors. PharmaCielo's principal (and wholly owned) subsidiary is PharmaCielo Colombia Holdings S.A.S., headquartered at its cultivation and processing center located in Rionegro, Colombia.
The board of directors and executive team of PharmaCielo are comprised of a diversely talented group of international business executives and specialists with relevant and varied expertise. PharmaCielo recognized the significant role that Colombia's ideal location plays in building a sustainable business in the medical cannabis industry, and the Company, together with its directors and executives, is executing on a business plan focused on supplying the international marketplace.
This news release contains forward-looking statements. Forward-looking statements can be identified by the use of words such as "expects", "is expected", "intends", "anticipates", "believes", or variations of such words and phrases or state that certain actions, events or results "may" or "will" be taken, occur or be completed or achieved. Forward-looking statements in this news release include, without limitation, statements regarding the issuance of the debenture units, including the timing and completion of any future issuances thereof.
The forward-looking statements in this news release are necessarily based on assumptions, including assumptions with respect to PharmaCielo's ability to obtain necessary approvals for the issuance of the debenture units.
Forward-looking statements can be affected by known and unknown risks, uncertainties and other factors, including changes to PharmaCielo's development plans, the failure to obtain and maintain all necessary regulatory approvals relating to the export of cannabinoid products and the import of these products into other countries, TSX Venture Exchange approval, the inability to export or distribute commercial products through sales channels as anticipated due to economic or operational circumstances, risks associated with operating in Colombia, fluctuation of the market price for the Company's products, risks associated with global economic and political instability or other developments, risks related to retention of key Company personnel, currency exchange risk, competition in PharmaCielo's market and other risks discussed or referred to under the heading "Risk Factors" in PharmaCielo's Annual Information Form for the financial year ended December 31, 2019, which is available at www.sedarplus.ca. Accordingly, readers should not place undue reliance on forward-looking statements. Except as required by law, PharmaCielo undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
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 press release.
