PharmaCielo Ltd. (OTCMKTS:PCLOF) has shared an update to shareholders in several of its ongoing initiatives and announced that it expects to close the previously announced marketed equity finances by April 7, 20201, for proceeds of around $12 million.
PharmaCielo restates its financial statements
As part of the customary review of its preliminary prospectus related to best effort overnight marketed equity financing, Staff of the Ontario Securities commission requested PharmaCielo to offer updates to the disclosure included in the June 29, 2929 “Bought Deal Prospectus.” This includes projections under specific agreements that include those with XPhyto Therapeutics Corp and CBD Export Global.
PharmaCielo has also restated its Q3 2020 financial statements and MD&A after reviewing its net realizable inventory valuation with its auditors. The restatement is also a result of global CBD isolate price fluctuations and at OSC Staff’s request to offer more information regarding its revenue for the period. The company commenced shipping a higher valued-added and broader CBD products suite to commercial customers from the end of Q4 2020.
Henning von Koss said that over the past several months, with new leadership, its focus has been solidifying its commercial strategy to support sales volume growth. Koss said that the Processing and Extraction Centre’s completion late last year and the ability to provide products manufactured in compliance with EU-GMP guidelines were the missing ingredients for PharmaCielo’s sales equation. As a result of achieving the milestones, the company has seen its sales pipeline start to grow, and Koss confirmed that they have the necessary ingredients to position the company for success.
PharmaCielo has sales agreements with CBD Export and XPhyto
In the Bought Deal Prospectus, the company highlighted that it expects revenue of $37.9 million for the year ending June 30, 2021, including expected sales under the XPhyto and CBD Export sales agreements. The company indicated that once it becomes cash flow positive, it will continue its operations indefinitely. Besides the XPhyto and CBD exports sales agreements, the company also has a sales agreement with a UK distributor and white label manufacturer.