PharmaCielo Seeks Financial Stabilization Amid Growing Losses

LOS ANGELES- In a bid to counter increasing financial setbacks, PharmaCielo Ltd., the parent company of the Colombian cannabis cultivator PharmaCielo Colombia Holdings S.A.S., has raised $3.3 million in a recent investment round. Through the issuance of 3,900 debenture units, the firm generated these funds, additionally allocating 600 units to alleviate debts accrued to prior service providers and workforce members.

This strategic maneuver is nestled within the company’s overarching blueprint designed to amplify its international sales and consolidate its operational core. “Our cadre remains unwavering in meeting our in-house sales goals and operational benchmarks,” articulated Marc Lustig, PharmaCielo’s Chairman and CEO.

Navigating the demanding equity market, Lustig remains optimistic, noting the sustained influx of nondilutive capital as an endorsement from both existing and fresh investors. “Our conscientious engagement with apt producers in pivotal global markets, complemented by our expandable production foundation, is bound to edge us toward a pivotal juncture in sales and cash flow dynamics,” he adds.

However, PharmaCielo’s recent financial statements tell a sobering tale. The firm recorded a revenue of merely $160,000 in the last quarter, a precipitous decline from the $2.1 million amassed during the corresponding period a year prior. Their Adjusted EBITDA and net loss metrics followed suit, registering at negative $2.1 million and $3.58 million, respectively.

Despite these financial headwinds and inevitable staffing reductions, Lustig remains resolute in his message to stakeholders, emphasizing the company’s steady trajectory. “The tangible strides made by our sales and finance contingents are anticipated to bear fruit in the ensuing quarters,” he conveyed recently.

On another front, PharmaCielo has disclosed intentions to issue over 2.2 million shares, priced at C$0.22 apiece, to resolve a $500,000 liability to certain past employees and service contributors. Adhering to Canadian securities guidelines, these shares will be subjected to a compulsory four-month retention period.