- Well capitalized with a cash and cash equivalents balance of
$40.8 million as of March 31, 2019
- Working towards first commercial sales in the 2nd
half of 2019
- Area under cultivation has grown to ~12 hectares from ~10
hectares at the end of 2018, a 20% increase in area under
cultivation
- Construction of Colombian processing facility progressing
toward production in late Q2/early Q3
- Currently in active negotiations in multiple markets in
South America and the EU
All figures are in CDN dollars unless otherwise
specified
TORONTO and RIONEGRO,
Colombia, May 27, 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., today announced its financial
results for the first quarter ended March
31, 2019.
"PharmaCielo has made significant progress over the past six
months toward its objective of generating commercial sales during
the second half of 2019," said David
Attard, Chief Executive Officer, PharmaCielo Ltd. "The
team has achieved the milestones it has targeted – significantly
increasing cultivation, expanding oil production capacity,
establishing the national cultivar's largest licensed strain
portfolio, growing the distribution network, entering JV's in two
markets, bolstering R&D with appointment of a top-tier
scientific and medical advisory board and receiving the coveted
ISO9001 quality assurance certification."
"2019 will continue to be an exciting year for the Company as we
focus on completing and producing out of our new oil production
facility, generating initial sales and growing sales channels. We
are well-capitalized to achieve our objectives and expect to see
sales significantly expand into 2020, driven by value-add product
development and activation of our international and Colombian sales
channels," added Attard.
Financial Highlights – Q1 – 2019
Operating
Results
All comparisons below are to the quarter ended
March 31, 2018, unless otherwise
noted
- Total operating expenses of $4.8
million as compared to $9.6
million
- Net loss of $7.7 million as
compared to $10.0 million
Balance Sheet
All comparisons below are to
December 31, 2018, unless otherwise
noted
- Cash and cash equivalents of $40.8
million as compared to $45.7
million
- Total assets of $64.6 million as
compared to $66.3 million
- Total liabilities of $3.6 million
as compared to $3.0 million
Discussion of Operations
The Company's net loss
totaled $7.7 million for the
three-months ended March 31, 2019
(compared to $10.0 million for the
three-months ended March 31, 2018),
with a basic loss per common share of $0.08 for the three-months ended March 31, 2019 versus a basic loss per common
share of $0.13 for the three-months
ended March 31, 2018.
This net loss was primarily due to reverse takeover listing
expense of $2.4 million for the
three-months ended March 31, 2019
(compared to $Nil in the three-months ended March 31, 2018), common share-based expense of
$1.4 million for the three-months
ended March 31, 2019 (compared to
$7.6 million in the three-months
ended March 31, 2018), Salaries and
wages $850,403 for the three-months
ended March 31, 2019 (compared to
$172,063 in the three-months ended
March 31, 2018), and Agricultural
pre-operational costs of $906,225 for
the three-months ended March 31, 2019
(compared to $331,766 in the
three-months ended March 31,
2018).
Other expenses were principally due to operating expenses to
continue the construction of the Research Technology and Processing
Centre.
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.
For further information:
www.PharmaCielo.com
Forward Looking Statements:
Certain statements contained in this news release, such as
those relating to anticipated commercial sales in 2019, growing
sales channels, expansion of sales in 2020, product development,
and the completion of the Colombian processing facility and
progressing toward production 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 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.