Canada NewsWire
TORONTO and RIONEGRO, Colombia, Aug. 31, 2020
All figures are in Canadian dollars ($) unless otherwise specified
TORONTO and RIONEGRO, Colombia, Aug. 31, 2020 /CNW/ - PharmaCielo Ltd. ("PharmaCielo" or the "Company") (TSXV: PCLO) (OTCQX: PCLOF), the Canadian parent of Colombia's premier cultivator and producer of medicinal-grade cannabis oil, PharmaCielo Colombia Holdings S.A.S., today announced financial results for the second quarter ended June 30, 2020.
Management Commentary
David Attard, Chief Executive Officer of PharmaCielo Ltd., commented, "I am proud of our team for delivering continued revenue growth, while maintaining tight cost control in a challenging environment. Establishing a robust, recurring international sales pipeline in an industry that is still in its early days, with established health and wellness product producers looking for continuous and verifiable high-quality supply, does take time. We are making steady progress and are backed by arguably one of the industry's largest combination of cultivation, state-of-the-art processing and extraction facilities to produce a growing portfolio of value-added cannabis extract products. With meaningful revenue growth in the back portion of the year expected to drive cash flow positive exiting 2020, PharmaCielo is set to begin delivering meaningful shareholder value while becoming the input supplier of choice for leading brands."
"Our first priority in Q2, in a challenging COVID-19 environment was to guarantee that existing important projects, related to our future biomass availability as well to our production and extraction facility stayed on track," said Henning von Koss who took over his responsibilities as President of PharmaCielo Ltd. as of May, 2020. "As David mentioned the medicinal cannabis extract market, beyond the traditional dry flower market, is in its early days and PharmaCielo plays an important role in this global evolution. Hence, it has also been our priority to bring the Company to a new stage in its objective of going beyond selling products and become the solution provider for the sector. As of mid-Q2, we had put significant effort into strengthening and aligning the business and product development activities on an internal basis."
Operational Update
Financial Highlights – Q2-2020
Summary Financials
Q2 2020 | Q1 2020 | Q2 2019 | |
Revenue | $1,232,541 | $514,409 | $nil |
Gross margin before fair value adj. | $560,773 | $53,174 | $nil |
Gross margin | $152,469 | ($156,720) | $nil |
SG&A | $7,775,734 | $7,298,998 | $8,774,494 |
Adjusted EBITDA (loss) | ($4,811,858) | ($3,548,818) | ($3,113,223) |
Net income (loss) | ($7,719,863) | ($6,317,998) | ($10,685,917) |
Wt. avg. shares outstanding – basic & diluted | 104,856,355 | 99,051,447 | 96,264,358 |
Basic and diluted (loss) per common share | ($0.07) | ($0.06) | ($0.11) |
Q2 Financial Results Conference Call and Webcast
PharmaCielo will host a conference call on Monday, August 31st, 2020, at 8:30 a.m. ET to discuss its second quarter financial results and provide investors with key business highlights. The call will be chaired by David Attard, CEO, Henning Von Koss, President, David Gordon, CCO and Scott Laitinen, CFO.
Date: August 31st, 2020 | Time:8:30 a.m. ET
Participant Dial-in: 416-764-8650 or 1-888-664-6383
Replay Dial-in: 416-764-8677 or 1-888-390-0541
Conference ID: 11880297
Playback #: 880297 (Expires September 14th, 2020)
Listen to webcast: event.on24.com
About PharmaCielo
PharmaCielo Ltd. (TSXV:PCLO, OTCQX:PCLOF) 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 cultivation and processing centre 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.
1 | Includes $4.0 million in net proceeds of the bought deal offering of common shares, which closed on July 3, 2020. For further information please see PharmaCielo's Management's Discussion and Analysis for the three months ended June 30, 2020, available on the Company's website or on SEDAR. |
Forward-Looking Statements:
Certain statements contained in this news release, such as those relating to processing and delivery of more extracted product during the second half of 2020 and into 2021, acceleration of production, the Company's initiation of the GMP certification process and associated expansion of customer base, entry of new markets, that the Company will be cash flow positive by the end of 2020, the Company's expansion of its portfolio, revenue growth of the Company in the back half of the year, delivery of shareholder value, becoming a solution provider for the sector, the continued enlargement of the Company's active cultivation footprint, the Company's commercial introduction of a range of products and completion of Route to Market in Q3 and the Company's plans to hold a public conference call regarding its Q2-2020 financial results 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 the Company's ability to obtain all necessary governmental regulatory and TSXV approval related to the exportation of PharmaCielo's CBD and THC products from Colombia, that there will be demand for the Company's products, that the Company's development plans do not change as a result of unforeseen events and that the Company's business generally and shipping logistics are not disrupted by COVID 19, 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 risks such as those referred to above are realized and result in delays, that the Company's financial condition or development plans change, the Company's failure to obtain necessary TSXV or applicable government regulatory approvals in order to export its products from Colombia or into other countries, failure to obtain GMP certification for the Processing and Extraction Centre, less than anticipated market demand for the Company's products, the Company's ability to ship its products is delayed or otherwise disrupted due to COVID 19 or due to other economic or operational circumstances, risks associated with operating in Colombia, risks associated with the cannabis industry generally, risks associated with global economic instability relating to COVID-19, currency exchange risk and additional risks described in the Company's Annual Information Form for the year ended December 31, 2019 filed with the Canadian securities regulatory authorities under the Company's SEDAR profile at www.sedar.com. 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.
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