- PharmaCielo expects to begin commercial sales in
2019.
- Oil processing facility is on track for commercial operation
and GMP certification during Q3-2019, enabling large-scale
production and sale of refined cannabis oil.
- Currently, 10 hectares are under active cultivation,
expanding to 20 hectares (~2.15 million square feet) by year-end
2019, backed by 20 proprietary registered strains and 186 strains
in the Company's germplasm bank.
- PharmaCielo's common shares began trading on the TSX Venture
Exchange ("TSXV" or "TSX Venture") under the ticker PCLO on
January 18, 2019.
- Well capitalized with a cash balance of US$33.5 million as of December 31, 2018.
All figures are in U.S. dollars unless otherwise
specified
TORONTO and RIONEGRO,
Colombia, April 18, 2019 /CNW/ - PharmaCielo Ltd.
("PharmaCielo" or the "Company") (TSXV:PCLO),
the Canadian parent of Colombia's
premier cultivator and producer of medicinal-grade cannabis oil,
PharmaCielo Colombia Holdings S.A.S., announces its financial
results for the fourth quarter and full year ended December 31, 2018.
PharmaCielo Ltd. CEO David Attard
commented on the company's continuing progress. "2018 was a year of
incredible growth, culminating in the public listing of our common
shares in January 2019. We are
expanding our cultivation and processing operations to begin
commercial sales of refined cannabis oil in 2019, having already
received more inbound requests for product than we are able to
fulfill in the near term. We are ready to sell, with sales
licensing and ISO 9001 certification in place and an initial 20
proprietary strains registered for commercial production. We
anticipate the completion of our first major processing expansion
in Q2 and our GMP certification in Q3."
"PharmaCielo has been structured with a singular strategic
objective in mind – to be a dominant global supplier of both
branded and white-labelled refined cannabis oil for large global
distribution channels. We have the product consistency and quality,
reliability of supply and structural cost advantage that will
enable us to provide the customized extracts that the global market
is looking for, making us very well positioned to become a dominant
global cannabis oil supplier," said Dr. Delon Human, PharmaCielo's Global Head of Health
and Innovation. "We have recently expanded our Medical and
Scientific Advisory Board, adding a group of top global medical
researchers and scientists, to enhance our product development
strategy and quickly bring high-quality, customized products to
market. Our team has decades of collective experience both
selling into these channels and running the very global enterprises
currently expressing increased interest and demand."
Developments Subsequent to the end of fiscal 2018
For a more comprehensive overview of these recent developments,
please refer to the corresponding press releases on the Company's
website (www.pharmacielo.com) and the Company's press releases and
other regulatory filings on SEDAR (www.sedar.com).
- On April 9, 2019, PharmaCielo
appointed a Medical and Scientific Advisory Board composed of an
international panel of renowned physicians, researchers,
veterinarians, engineers and academics. This advisory board will
guide PharmaCielo's research and development of special
cannabinoids-based formulations and derived products with
therapeutic properties.
- On March 29, 2019, PharmaCielo
announced that its Colombian subsidiary had received approval from
the national cultivar registry for the listing of 10 proprietary
cannabis strains. This brings the number of approved strains held
by PharmaCielo to 20, following the Company's February 6, 2019 announcement of the approval of
an initial 10 strains. PharmaCielo is the largest holder of
approved strains in Colombia.
- On March 19,2019, PharmaCielo
received ISO 9001 Quality Assurance Certification for its medicinal
cannabis cultivation and processing operations in Colombia.
- On January 28, 2019, PharmaCielo
announced that it had established an equity joint venture with Mino
Labs S.A. de C.V, a specialty pharmaceutical company and medical
supply distributor based in Mexico, to bring medicinal cannabis oil to
Mexico.
- On January 18, 2019, PharmaCielo
began trading on the TSX Venture Exchange under the ticker
PCLO.
- On January 15, 2019, the Company
completed an RTO with AAJ Capital 1 Corp. ("AAJ").
Discussion of Operations
The Company's net loss totaled $24.4
million for the twelve-month year ending December 31, 2018 (compared to $5.4 million for the five-month period ending
December 31, 2017; and compared to
$7.6 million for the twelve-month
year ending July 31, 2017), with a
basic loss per share of $0.31 for the
twelve-month year ending December 31,
2018 versus a basic loss per share of $0.07 for the five-month period ending
December 31, 2017, and a basic loss
per share of $0.12 for the
twelve-month year ending July 31,
2017.
This net loss was primarily due to a share-based payments of
$14.4 million for the twelve-month
year ended December 31, 2018
(compared to $111,256 in the
five-month period ending December 31,
2017, and $2.3 million in the
twelve-month year ending July 31,
2017). These share-based expenses were incurred primarily
for options granted to employees and directors who had worked for
and developed the Company over the years.
Other expenses were principally due to operating expenses to
continue the construction of the Research Technology and Processing
Centre, and to grow and harvest the plants. Additionally, operating
expenses were incurred in Canada
for legal, travel, and other fees incurred in order to facilitate
the capital raise to complete the Plan of Arrangement. The one-time
non-cash item for options was the largest expense.
PharmaCielo Grants Restricted Share Units
Effective April 17, 2019 the
Company has granted Restricted Share Units ("RSUs") as
follows (i) 20,000 RSUs to Doug
Bache, a director of the Company; half of which vest six
months from the grant date and half of which vest one year from the
grant date; (ii) 75,000 RSUs to Carlos
Manuel Uribe, a director of the Company; half of which vest
six months from the grant date and half of which vest one year from
the grant date; and (iii) 913,000 RSUs to employees and consultants
of the Company; half of which vest one year from the grant date and
half of which two years from the grant date. Each RSU entitles the
holder thereof to receive one common share of the Company (each, a
"Common Share").
The RSU's are governed by the RSU plan of the Company (the
"RSU Plan"). The RSU Plan was approved by shareholders of
the Company on September 20, 2019.
The number of Common Shares that may be reserved for issuance
pursuant to awards granted under the RSU Plan is 3,101,435 Common
Shares, representing 3.3% of the 93,976,962 Common Shares
that were issued and outstanding when the Company completed its
qualifying transaction (the "Qualifying Transaction")
pursuant to the policies of the TSXV and together with the number
of Common Shares issuable under the stock option plan of the
Company and the deferred share unit plan of the Company may be up
to 18,795,392 Common Shares, being 20% of 93,976,962 issued and
outstanding Common Shares when the Company completed its Qualifying
Transaction. After this issuance there are 1,008,000 RSUs
outstanding.
About PharmaCielo
PharmaCielo Ltd. (TSXV:PCLO) 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 nursery and propagation centre located in Rionegro,
Colombia.
The boards of directors and executive teams of both PharmaCielo
and PharmaCielo Colombia Holdings 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 will play 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:
Certain statements contained in this news release, such as
those relating to anticipated commercial sales in 2019, the
completion of the oil processing facility and GMP certification
during Q3-2019, the expansion to 20 hectares of cultivation by
year-end 2019, commencing commercial sales of refined cannabis oil,
expansion of cultivation and processing operations, completion of
the first major processing expansion in Q2 and GMP certification in
Q3 constitute "forward-looking information" as such term is
used in applicable Canadian securities laws. Forward-looking
information is based on plans, expectations and estimates of
management at the date the information is provided and is subject
to certain factors and assumptions, including that the Company's
financial condition and development plans do not change as a result
of unforeseen events. Forward-looking information is subject to a
variety of risks and uncertainties and other factors that could
cause plans, estimates and actual results to vary materially from
those projected in such forward-looking information. Factors that
could cause the forward-looking information in this news release to
change or to be inaccurate include, but are not limited to, the
risk that any of the assumptions referred to prove not to be valid
or reliable, that occurrences such as those referred to above are
realized and result in delays, or cessation in planned work, that
the Company's financial condition and development plans change, and
delays in regulatory approval, as well as the other risks and
uncertainties applicable to cannabis producing companies and to the
Company. The Company undertakes no obligation to update these
forward-looking statements, other than as required by applicable
law.
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.