TORONTO, Dec. 5, 2019 /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 oil, PharmaCielo Colombia
Holdings S.A.S., announced that Creso Pharma Limited
("Creso") (ASX:CPH) has repaid in full, all principal and
interest owing to the Company in the amount of approximately
CAD$3.9 million under the secured
bridge loan by PharmaCielo to Creso that was made pursuant to an
amendment to Creso's existing loan deed, originally entered into
with an arm's length party to Creso on April
26, 2019 (the "Secured Bridge
Loan").
"With $20.7 million in cash and
short-term investments at the end of Q3 and the repayment by Creso
of this $3.9 million loan,
PharmaCielo is well-capitalized to execute on the growth
initiatives ahead," said David
Attard, Chief Executive Officer of PharmaCielo Ltd. "As we
approach the end of 2019, PharmaCielo has the capacity, the
international cost advantage, the processing capacity and the sales
channels to meaningfully increase revenue in 2020."
The Secured Bridge Loan was secured by a general security
agreement over the assets of Creso and a pledge by Creso of the
shares of Mernova Medicinal Inc., a subsidiary of Creso Pharma. The
Secured Bridge Loan bore interest at a rate of 15% per annum and
matured on November 30, 2019.
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 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.
For further information:
www.PharmaCielo.com
Neither the TSXV nor its Regulation Services Provider (as
that term is defined in the policies of the TSXV) accepts
responsibility for the adequacy or accuracy of this press
release.
Forward-Looking Statements
Certain statements contained in this news release, such as
those relating to a predicted revenue increase in 2020, anticipated
processing capacity, sales channels, and international cost
advantages may contain "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 the ability to obtain
all necessary governmental regulatory and TSXV approval related to
the commercialization and exportation of PharmaCielo's CBD products
from Colombia, that the Company's
financial condition and development plans do not change as a result
of unforeseen events, and management's ability to execute its
business plan. 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 or
production which increases product costs, that the Company's
financial condition negatively change, failure to obtain necessary
TSXV or applicable government regulatory approvals, the Company is
unable to export or distribute commercial product to its sale
channels due to economic or operational circumstances, risks
associated with operating in Colombia, 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.
SOURCE PharmaCielo Ltd.