PharmaCielo Ltd. (TSXV:PCLO) (OTCQX:PCLOF), the Canadian parent of Colombia's cannabis company PharmaCielo Colombia Holdings S.A.S., reported Friday that it has completed the initial tranche of its previously announced non-brokered private placement. The private placement consists of 5,000 debenture units issued at a price of CA$1,000 ($784.72) per unit for total proceeds of CA$5.00 million.
The company closed an initial tranche of the offering consisting of CA$4 million principal amount of units on December 24, 2021 and a further tranche consisting of CA$1.00 million principal amount of units on December 31, 2021. Insiders participated in this initial tranche of financing.
PharmaCielo expects to close the issuance of up to an additional CA$10 million principal amount of units in one or more tranches on or about January 14, 2022.
The company plans to use the collected proceeds for its operations, working capital and the build-out of its international psychoactive dry flower sales program.
The Offering Details
Each unit consists of CA$1,000 principal amount of 11% secured debentures and 250 non-transferable common share purchase warrants. Each debenture warrant entitles the holder to acquire one common share of the company at an exercise price of CA$1.44 per share until December 24,
The debentures bear interest at a rate of 11% per annum, to mature on December 24, 2024, and are guaranteed by Holdings. Holdings' guarantee of the Debentures will be secured by mortgages on the real property of the Company and its subsidiaries.
Certain directors and senior officers of the company have subscribed for units in the offering, in an aggregate principal amount totaling CA$490,000.
Price Action
PharmaCielo’s shares traded 14.25% lower at 67 cents per share at the time of writing Monday morning.
Photo: Courtesy of by Esteban Lopez on Unsplash
