PharmaCielo Raises $3.3 Million Under Previously Announced Non-Brokered Private Placement

Published: October 11, 2023

PharmaCielo Raises $3.3 Million Under Previously Announced Non-Brokered Private Placement

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., announced that it has closed another tranche of the non-brokered private placement (the “New Offering”) that was announced on June 29, 2023. Under the New Offering, to date, PharmaCielo issued 3,900 debenture units (each a “Unit”), for aggregate proceeds of $3,300,000, while 600 Units have been issued to satisfy amounts owing to certain previous service providers and employees. The Company is continuing to issue the Units in multiple closings and using the proceeds from the sale of the Units for operations, working capital and the build-out of its international sales program.

“Our team continues to make steady progress against our internal sales objectives and efficiency targets,” said Marc Lustig, Chairman and CEO of PharmaCielo. “While the equity markets remain challenging, the non-dilutive capital we continue to raise is a sign of support from current and new investors. I am confident that the team’s consistent work to ensure PharmaCielo is in discussions with the right producers in key global markets, combined with our scalable production base will continue to move us closer to an inflection point in both sales and cash flow.”

Shares for Settlement of Certain Amounts Owing
Today, the Company also announced that it intends to issue, subject to the approval of the TSX Venture Exchange (the “TSXV”), up to 2,272,727 common shares of the Company (“Settlement Shares”), in satisfaction of an aggregate of up to $500,000 debt owed to certain former service providers and former employees of the Company. The deemed price of the common shares to be issued have been approved by TSXV to be C$0.22, being the higher of the price of common shares at market close, or 10-day Volume Weighted Average Price on the date the board of directors of the Corporation approved issuance of shares, (the “Deemed Price”).

The Settlement Shares will be subject to a four-month hold period under applicable Canadian securities laws, starting from the date of issuance of the Settlement Shares.

About PharmaCielo
PharmaCielo Ltd. is a global company, headquartered in Canada, with a focus on ethical and sustainable processing and supplying of all natural, pharmaceutical-grade medical 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.