TORONTO and RIONEGRO, Colombia, May 11, 2022
/CNW/ - PharmaCielo Ltd. ("PharmaCielo" or the "Company") (TSXV:
PCLO) (OTCQX: PCLOF), the Canadian parent of Colombia's premier cultivator and producer of
medicinal-grade cannabis extracts, PharmaCielo Colombia Holdings
S.A.S. ("Holdings"), announces today that, further to its
previously announced non-brokered private placement of debenture
units ("Units"), it is engaged in ongoing discussions with specific
parties and expects to issue up to an additional $3,500,000 principal amount of Units in the
coming weeks, in one or more closings, subject to the approval of
the TSX Venture Exchange. Since its announcement of the offering,
the Company has issued $6,500,000
principal amount of Units.
As disclosed in the Company's news release dated December 22, 2021, the Company intends to use the
proceeds from the sale of the Units for operations, working capital
and the build-out of its international psychoactive dried flower
sales program. Since February 2022,
PharmaCielo has announced: a sales agreement with Greenstein
Germany GmbH, an independent pharmaceutical wholesaler specializing
in the distribution of cannabis-based phytopharmaceuticals in
Germany, to commercialize THC
final products through NOWEDA e.G., a pharmaceutical wholesaler to
all pharmacies in Germany; and an
agreement with Soteria Holdings Limited to license, import and
wholesale its medical cannabis flower and extracts in the Polish
market.
Each Unit consists of $1,000
principal amount of 11% secured debentures ("Debentures") and 250
non-transferable common share purchase warrants ("Debenture
Warrants"). Each Debenture Warrant entitles the holder to acquire
one common share of the Company (each a "Common Share") at an
exercise price of $1.44 per Common
Share until December 24, 2024
(subject to customary anti-dilution adjustments). The Debentures
bear interest at a rate of 11% per annum, mature on December 24, 2024, and are guaranteed by
Holdings. Holdings' guarantee of the Debentures will be secured by
mortgages on the real property of the Company and its subsidiaries.
Interest payable on the Debentures may be paid by the Company in
Common Shares at the Company's option, subject to approval of the
TSX Venture Exchange.
About PharmaCielo
PharmaCielo Ltd. (TSXV: PCLO, OTCQX: PCLOF)
is a global company, headquartered in Canada, with a focus on ethical and
sustainable processing and supplying of all natural,
medicinal-grade cannabis oil extracts and related 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.
Forward-Looking Statements
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 Units, including the terms thereof and the closing
date therefor.
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 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.
SOURCE PharmaCielo Ltd.