PharmaCielo has closed its previously announced “best efforts” private placement financing of 12,428,002 special warrants of the company at $0.65 per Special Warrant for aggregate gross proceeds of approximately $8 million. The offering was conducted by a syndicate of agents led by Cormark Securities, Stifel GMP and Echelon Wealth Partners.
“Against a backdrop of very challenging capital markets, we are very pleased to have successfully closed this nominal equity offering, in which both management team and board members participated. This round of funding provides PharmaCielo with added flexibility to ramp up processing and extraction output over the next several months to fulfill volumes required under existing and future sales agreements as we diligently continue sales efforts,” said David Attard, CEO of PharmaCielo. “Currently, while the Colombian government’s measures to fight COVID-19 are in place, our team is focused on continuing cultivation and harvest activities. This, coupled with the ability to resume commercial extraction activities, ensure that PharmaCielo is ready to deliver medicinal-quality oils and isolates at scale. While the world continues to grapple with the impact of COVID-19, and we do our part in this fight, our sights are also set on the day after when economies begin to return to normal with the demand for medicinal-grade extracts that follow.”
Each Special Warrant entitles the holder thereof to receive one common share of the company on exercise thereof. Each Special Warrant will be automatically exercised on the earlier of: (i) the fifth business day after the Prospectus Qualification; and (ii) at 4:59 p.m. (EDT) on the date which is four months and a day following the date of closing.
The net proceeds of the offering shall be used to support the anticipated processing capacity expansion, commence ramping up the company’s contract growing operations, working capital and general corporate purposes.
The closing of the offering is subject to regulatory approval including that of the TSX Venture Exchange.
For more information:
PharmaCielo
[email protected]
pharmacielo.com