TORONTO, Dec. 5, 2019 /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., announced that Creso Pharma Limited ("Creso") (ASX:CPH) has repaid in full, all principal and interest owing to the Company in the amount of approximately CAD$3.9 million under the secured bridge loan by PharmaCielo to Creso that was made pursuant to an amendment to Creso's existing loan deed, originally entered into with an arm's length party to Creso on April 26, 2019 (the "Secured Bridge Loan").
"With $20.7 million in cash and short-term investments at the end of Q3 and the repayment by Creso of this $3.9 million loan, PharmaCielo is well-capitalized to execute on the growth initiatives ahead," said David Attard, Chief Executive Officer of PharmaCielo Ltd. "As we approach the end of 2019, PharmaCielo has the capacity, the international cost advantage, the processing capacity and the sales channels to meaningfully increase revenue in 2020."
The Secured Bridge Loan was secured by a general security agreement over the assets of Creso and a pledge by Creso of the shares of Mernova Medicinal Inc., a subsidiary of Creso Pharma. The Secured Bridge Loan bore interest at a rate of 15% per annum and matured on November 30, 2019.
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 nursery and propagation centre located in Rionegro, Colombia.
The boards of directors and executive teams of both PharmaCielo and PharmaCielo Colombia Holdings 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 will play 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.
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Certain statements contained in this news release, such as those relating to a predicted revenue increase in 2020, anticipated processing capacity, sales channels, and international cost advantages may 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 ability to obtain all necessary governmental regulatory and TSXV approval related to the commercialization and exportation of PharmaCielo's CBD products from Colombia, that the Company's financial condition and development plans do not change as a result of unforeseen events, and management's ability to execute its business plan. 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 occurrences such as those referred to above are realized and result in delays, or cessation in planned work or production which increases product costs, that the Company's financial condition negatively change, failure to obtain necessary TSXV or applicable government regulatory approvals, the Company is unable to export or distribute commercial product to its sale channels due to economic or operational circumstances, risks associated with operating in Colombia, as well as the other risks and uncertainties applicable to cannabis producing companies and to the Company. The Company undertakes no obligation to update these forward-looking statements, other than as required by applicable law.
SOURCE PharmaCielo Ltd.