PharmaCielo Ltd. (TSXV:PCLO) (OTCQX:PCLOF) revealed Wednesday that it is in the process of raising up to $15 million through a non-brokered private placement of debenture units.
The Canadian parent of Colombia's premier cultivator and producer of medicinal-grade cannabis extracts, PharmaCielo Colombia Holdings S.A.S., said that it has plans to issue up to 15,000 debenture units at $1,000 per unit.
The company expects to issue the units on or about December 30, 2021, in one or more closings, subject to the approval of the TSX Venture Exchange.
The net proceeds will be used for working capital and the build-out of its international psychoactive dry flower sales program.
Each unit will consist of a $1,000 principal amount of 11% secured debentures and 250 non-transferable common share purchase warrants, with each warrant entitling the holder for a period of 36 months from the initial closing date to acquire one common share of the company at an exercise price equal to a 50% premium over the market price of the common shares at the time of the initial closing.
The debentures will carry interest at a rate of 11% per annum and will mature 36 months from the date of the initial closing date.
The company's CEO, Bill Petron, expects next year to be a "very important year" for PharmaCielo with Colombian dried flower exports set to get underway.
"This Offering gives us the necessary capital to deliver on current sales opportunities while strategically building our global sales organization to expand our pipeline," Petron continued. "The fact that we were able to obtain debt financing at a very reasonable cost represents a strong vote of confidence from investors and insiders regarding both our team's progress to date as well as in PharmaCielo's growth potential over the next twelve months."
More recent news from PharmaCielo:
Cannabis Extracts Producer PharmaCielo's Q3 Revenue Improves 1826% YoY To $380,480
Effects Of Politics On Cannabis Stocks — Cannabis Daily September 14, 2021
PharmaCielo Achieves Colombian GMP Certification For Phytotherapeutics
Canadian-Colombian Cannabis Co. PharmaCielo Expands In Brazil With New Pharma Customer
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