Colombian Cannabis Cultivator PharmaCielo Closes $13.5 Million CAD Capital Raise
With operations outside of Medellín, Colombia and legal headquarters in Toronto, Canada, PharmaCielo Ltd. (TSXV: PCLO) (OTCQX: PCLOF), announced last Thursday the closing of its previously announced overnight marketed offering of common shares from the company’s treasury, for gross proceeds of $13,549,012 Canadian dollars, conducted through a syndicate of agents led by Cormark Securities Inc. and including Stifel GMP inclusive of $50,000 from a non-brokered portion of the offering.
PharmaCielo granted the agents an option to purchase an additional 840,698 shares sold in the offering. A portion of the over-allotment option has already been exercised and is reflected as part of the gross proceeds as the offering. Each common share was issued at a price of $2.15. The company intends to use the net proceeds from the offering for growth initiatives and for general working capital purposes.
“The additional capital provided by the offering puts PharmaCielo on solid footing to execute a focused strategic plan designed to leverage the company’s recently completed production facilities into results for shareholders. In the short-term, we are in the process of building a global sales organization through the addition of highly experienced technical business development professionals, with a mandate to close late-stage opportunities, grow our sales pipeline and shepherd potential customers from the introduction phase into testing and purchase. Alongside these concentrated sales initiatives, we will continue to invest in innovation, specifically to grow the company’s product offerings and formulation expertise, which we expect will translate into sustainable long-term shareholder value creation as global demand from sophisticated B2B consumers continues to grow over the next several years,” said Henning von Koss, CEO of PharmaCielo Ltd.
In satisfaction of a condition of the offering, senior management and directors of the board of the company have entered into a lock-up agreement for a period of 120 days from the date of closing prohibiting their disposition of securities of the company subject to certain exceptions.
The offering was conducted by way of a short form prospectus in the Canadian provinces of British Columbia, Alberta, Ontario, Quebec and Nova Scotia. A copy of the final short form prospectus is available under the company’s profile on the SEDAR website at www.sedar.com.
Photos courtesy PharmaCielo