PharmaCielo Announces its Financial Results for the First Quarter 2019

Published: May 28, 2019

PharmaCielo Ltd., the Canadian parent of Colombia’s premier cultivator and producer of medicinal-grade cannabis oil, PharmaCielo Colombia Holdings S.A.S., today announced its financial results for the first quarter ended March 31, 2019.

“PharmaCielo has made significant progress over the past six months toward its objective of generating commercial sales during the second half of 2019,” said David Attard, Chief Executive Officer, PharmaCielo Ltd.  “The team has achieved the milestones it has targeted – significantly increasing cultivation, expanding oil production capacity, establishing the national cultivar’s largest licensed strain portfolio, growing the distribution network, entering JV’s in two markets, bolstering R&D with appointment of a top-tier scientific and medical advisory board and receiving the coveted ISO9001 quality assurance certification.”

“2019 will continue to be an exciting year for the Company as we focus on completing and producing out of our new oil production facility, generating initial sales and growing sales channels. We are well-capitalized to achieve our objectives and expect to see sales significantly expand into 2020, driven by value-add product development and activation of our international and Colombian sales channels,”  added Attard.

Financial Highlights – Q1 – 2019 
Operating Results
All comparisons below are to the quarter ended March 31, 2018, unless otherwise noted

  • Total operating expenses of $4.8 million as compared to $9.6 million
  • Net loss of $7.7 million as compared to $10.0 million

Balance Sheet
All comparisons below are to December 31, 2018, unless otherwise noted

  • Cash and cash equivalents of $40.8 million as compared to $45.7 million
  • Total assets of $64.6 million as compared to $66.3 million
  • Total liabilities of $3.6 million as compared to $3.0 million

Discussion of Operations  
The Company’s net loss totaled $7.7 million for the three-months ended March 31, 2019 (compared to $10.0 million for the three-months ended March 31, 2018), with a basic loss per common share of $0.08 for the three-months ended March 31, 2019 versus a basic loss per common share of $0.13 for the three-months ended March 31, 2018.

This net loss was primarily due to reverse takeover listing expense of $2.4 million for the three-months ended March 31, 2019 (compared to $Nil in the three-months ended March 31, 2018), common share-based expense of $1.4 million for the three-months ended March 31, 2019 (compared to $7.6 million in the three-months ended March 31, 2018), Salaries and wages $850,403 for the three-months ended March 31, 2019 (compared to $172,063 in the three-months ended March 31, 2018), and Agricultural pre-operational costs of $906,225 for the three-months ended March 31, 2019 (compared to $331,766 in the three-months ended March 31, 2018).

Other expenses were principally due to operating expenses to continue the construction of the Research Technology and Processing Centre.