PharmaCielo Ltd., 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, 2023.
Marc Lustig, Chairman and CEO of PharmaCielo commented, “Our sales and finance teams have made measurable progress and I expect these efforts to continue to pay off over the next several quarters. From a sales perspective, we are getting more opportunities with large global customers than ever before, as weaker players exit the marketplace or fail to deliver on the quality and consistency required by these institutional-caliber entities. Alongside these steady initiatives to drive the top line, our finance team has delivered on our targeted 25% reduction in ongoing overhead expenses ahead of budget and with no meaningful impact to our ability to execute on existing contracts and go out and win new ones. As one of the largest single investors in this company, I strongly believe that the initiatives we have underway will result in meaningful growth in the top line, and with all material capex behind us, will translate into cash flow and growth in shareholder value.”
Summary Financials
| Three months ended | ||||||||
| (000’s) | Jun 30 2023 | Jun 30 2022 | ||||||
| Revenue | $ | 160 | $ | 2,119 | ||||
| Adjusted EBITDA (Loss) | $ | (2,119 | ) | $ | (1,823 | ) | ||
| Net Loss | $ | (3,585 | ) | $ | (3,517 | ) | ||
| Net Loss per Share | $ | (0.02 | ) | $ | (0.02 | ) | ||
- For further detailed information and analysis, please see the financial statements and management’s discussion and analysis for the period ending June 30, 2023, as posted at sedarplus.ca and pharmacielo.com
Summary of Recent Developments
- On July 11, 2023, PharmaCielo announced that Marc Lustig had been appointed Chairman and CEO of the Company. Mr. Lustig has a proven history of value creation across the cannabis, capital markets and health sciences sectors.
- As announced in the Company’s August 10, 2023 news release, PharmaCielo’s sales team continues to make progress with new and existing customers. Notable upcoming catalysts include: The Company’s first shipment to its third Brazilian customer, expected to take place during Q4 2023, and ongoing shipments of THC-dominant dried flower to a customer in Germany.
- The Company is on track to achieve its objective of operating efficiently with a specific goal of lowering overhead expenses by 25% compared to 2022 levels. In Q1 2023, overhead expenses were 20% below the prior year period and in Q2 2023, overhead expenses were 25% below the prior year period. As a result of the efforts of the management to right-size the company the number of employees is now 132 from a high of 450 in 2021, and 331 at the end of 2022, with no meaningful impact on PharmaCielo’s ability to execute on existing and new contracts.
The Company defines “overhead expenses” as: consulting fees, office & general expenses, professional fees, salaries and wages, and travel and accommodation expenses.
Non-Brokered Private Placement of Debenture Units:
In 2023, Year-to-date, the Company raised $3,280,000, as part of its previously announced non-brokered private placements (the “Offering” and “New Offering”), consisting of an aggregate of 3,280 debenture units (each a “Unit”). The Units were issued at a price of $1,000 per Unit for aggregate proceeds of $3,280,000. To date, since its announcement of the Offering, the Company has raised $14,075,000 principal amount of Units. As disclosed in the Company’s news release dated June 29, 2023, the Company intends to use the proceeds from the sale of the units for operations, working capital, and the build-out of its international sales program.
About PharmaCielo
PharmaCielo Ltd. 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.
