All figures in Canadian dollars ($) unless otherwise specified
Toronto, Ontario and Rionegro, Colombia--(Newsfile Corp. - August 16, 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 second quarter ended June 30, 2024.
Summary Financials - Second Quarter Ended June 30, 2024
Three months ended
(000's)
June 30 2024
March 31, 2024
June 30 2023
Revenue
$784
$ 240
$160
Adjusted EBITDA
$(592)
$ (1,264)
($2,119)
Net Loss
($2,575)
$ (2,420)
($3,585)
Net Loss per Share
($0.015)
$ (0.014)
($0.023)
*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 June 30, 2024, as posted at sedarplus.ca and pharmacielo.com.
Management Commentary
Marc Lustig, Chairman and CEO of PharmaCielo commented, "The global cannabis market presents significant opportunities, particularly as large consumer and pharmaceutical companies enter the industry. Our company is uniquely equipped to serve these organizations with pharma-grade extracts and dried flower that offer unmatched consistency and a structural cost advantage. While the market is still emerging, our efforts to build a robust sales pipeline focused on our high-margin product portfolio are progressing well. We have successfully reduced 2024 year-to-date total SG&A expenses by over 38% versus the same period last year. Our Adjusted EBITDA has been steadily improving, now down to $0.6 million loss in 2024 Q2 versus a loss of $2.1 million last year. With no significant capital expenditures required to reach full commercial scale, we are better positioned than ever to achieve increased profitability and cash flow as our sales grow."
Interest Shares
Today, PharmaCielo also announced that it intends to issue, subject to the approval of the TSX Venture Exchange, 5,979,496 common shares of PharmaCielo ("Interest Shares"), at an effective price of $0.1579 per Interest Share, in satisfaction of an aggregate of $944,165 in semi-annual interest payments due to holders of 11% secured debentures of the Company due December 24, 2024, and June 30, 2026 (the "Debentures"). The effective price of the Interest Shares was determined by dividing the cash interest otherwise payable by the number of shares issuable under each Debenture, as determined on August 13, 2024, in accordance with the terms of the Debentures, taking into consideration the period during which the Company's shares were under a cease trade order from Ontario Securities Commission.
The Interest Shares are subject to the balance, if any, of the 4-month statutory hold period applicable to the relevant Debenture under Canadian securities laws.
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 instability relating to COVID-19 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.sedar.com. 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.
