Represents PharmaCielo's first shipment to Africa. Morocco is pioneering the commercialization of cannabinoid products on the African continent and will be a growing market.
The Company also announced that it has agreed to issue shares in settlement of certain interest payments and debt.
TORONTO, Canada and RIONEGRO, Colombia, Dec. 5, 2022 /CNW/ - PharmaCielo Ltd. ("PharmaCielo" or the "Company") (TSXV: PCLO) (OTCQX: PCLOF), the Canadian parent of Colombia's premier cultivator and producer of dried cannabis flower and medicinal-grade cannabis extracts, PharmaCielo Colombia Holdings S.A.S. ("Holdings"), today announced that it has made an initial shipment of CBD Isolate to a pharmaceutical company in Morocco, to facilitate pre-commercial testing. The customer is developing a portfolio of cannabinoid medicines, both non-psychoactive, and psychoactive.
Bill Petron, CEO of PharmaCielo, commented, "With our first shipment to Morocco, PharmaCielo products are now at various stages of testing and sales with customers in 12 countries globally. This customer provides us with both our first potential relationship in Africa, as well as an additional gateway to the EU market. Our business development team has done an outstanding job of getting PharmaCielo into the testing and auditing phases at several large potential customers, and we expect this activity to translate into commercial deals in the coming months, paving the way to significant revenue growth for the Company."
Issuance of Interest Shares and Shares for Debt Transaction
The Company also announced that it intends to issue, subject to the approval of the TSX Venture Exchange, 1,349,016 common shares of the Company ("Interest Shares"), at an effective price of $0.3704 per Interest Share, in satisfaction of an aggregate of $499,657.67 in semi-annual interest payments due to holders of 11% secured debentures of the Company due December 24, 2024 (the "Debentures"). The effective price of the Interest Shares was determined by dividing the cash interest otherwise payable, by the number of shares issuable under each Debenture, as determined on December 1, 2022, in accordance with the terms of the Debentures.
Today, the Company also announced that it intends to issue, subject to the approval of the TSX Venture Exchange, the settlement of $260,000.00 of debt owed to a former Officer of the Company, through the issuance of an aggregate amount of 701,969 common shares of the Company (the "Payment Shares") at a deemed price of $0.3704 per Payment Share.
The Interest and Payment Shares will be issued in reliance on certain prospectus exemptions available under securities legislation and 752,136 of the Interest and Payment Shares issued fall within the four-month plus one day statutory hold period.
PharmaCielo Ltd. (TSXV: PCLO, OTCQX: PCLOF) is a global company, headquartered in Canada, with a focus on ethical and sustainable cultivating, processing and supply of all natural, pharmaceutical-grade medical dried cannabis flower and 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.
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.
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 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.
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