Pharmacielo Ltd - PCLOF stock
Introduction[edit]
PharmaCielo Ltd. (OTC: PCLOF, TSXV: PCLO) is a Canada-based pharmaceutical company. The company focuses on ethical and sustainable processing and supply of all-natural, pharmaceutical-grade medical cannabis oil extracts and related products to large channel distributors such as pharmacies, medical clinics, and cosmetic companies. It operates via PharmaCielo Colombia Holdings S.A.S. (PharmaCielo Colombia), its wholly-owned subsidiary. The firm offers its services to customers across the USA and the rest of the world. The company was formulated on July 14, 2014, and has its headquarters in Toronto, Canada. The firm obtained its Colombian manufacturing license in 2016 and hastily climbed the ranks to become one of the key players in the international medicinal cannabis sector. PharmaCielo is a publicly-traded corporation. Its stock trade on OTCQX under the ‘PCLOF’ ticker symbol.[1]
Company Operations[edit]
The company is dedicated to producing pharmaceutical-quality flowers and extracts in the most consistent, safe, and reliable manner possible. The goal requires the highest standards of commitment in every step. Through PharmaCielo Colombia Holdings S.A.S., the company cultivates, produces, and deploys both cannabidiol (CBD) and tetrahydrocannabinol (THC) medicinal cannabis extracts. The firm carries out its Good Agricultural and Collection Practices (GACP)-certified cultivation takes on approximately 12 hectares of open-air greenhouses and 2000 square meters (m2) of processing and manufacturing plants. PharmaCielo cultivates four full crops annually, which amounts to approximately 500,000 kg of flower production per annum.
The company delivers a wide range of robust medicinal cannabis oil, distillates, and isolates for business-to-business (B2B) clients, including broad spectrum, full spectrum, pure CBD isolates, water-soluble cannabinoids, and customized extracts.[2] It held three product licenses advanced by the Colombian government as of September 30, 2019: (i) the Cannabis Psychoactive License, granted on October 19, 2017; (ii) the Cannabis Non-Psychoactive Cultivation License, granted on October 19, 2017; and (iii) the Cannabis Manufacturing License, granted on April 16, 2018, and amended on January 30, 2019.[3]
PharmaCielo heavily employs science, from genetics to the final quality of its products. The company’s tissue culture lab preserves its myriad of propriety varieties, while her state-of-the-art facilities enable the production of consistent, high-quality extracts, both psychoactive and non-psychoactive, at scale.[4]
Short Early History[edit]
The company was incorporated under the Business Corporations Act (British Columbia) on May 30, 2017, under the name “AAJ Capital 1 Corp.”. It initially began trading on the TSX Venture Exchange on January 18, 2019, under the PCLO ticker symbol. PharmaCielo Ltd. was incorporated according to the Business Corporations Act (British Columbia) on May 30, 2017, as “AAJ Capital 1 Corp.”. The company changed its name to “PharmaCielo Ltd.” after overseeing its Qualifying Transaction (as such term is defined in Policy 2.4 – Capital Pool Companies of the TSXV Corporate Finance Manual (“Policy 2.4”)) following the policies of the TSXV on January 15, 2019.[5]
Company and Industry News[edit]
Cannabidiol Market pumped approximately USD 12.8 billion into the economy in 2021. The market size is projected to grow with a 21.3% CAGR between 2022 and 2028. The world is gradually recognizing and appreciating the health benefits of cannabidiol (CBD) and its effectiveness in pain management and other medical contributions. Various governments embrace regulatory reform, with many nations liberalizing the production and consumption of cannabis. Cannabidiol is projected to hit USD 47.22 Billion by 2028.[6]
On July 28, 2022, the company announced a supply agreement with one of the largest phytotherapeutic companies in the Brazilian market. The customer holds an exquisite distribution network across Latin America, and is also a certified B-Corp, reflecting its commitment to a transparent business model that measures social and environmental impacts.[7]
PharmaCielo announced its financial results for the second quarter ended June 30, 2022. Highlights of captured pronouncements include:
- The Company continues to grow sales and expects to expand through the remainder of 2022 and to 2023, with recent progress in Israel, Brazil, and Mexico.
- The firm’s product has been so far sold in 14 countries, and the Company expects to increase this total to 17 countries by the end of 2022.
- Recently received ICANN G.A.P and GACP certifications, enabling commercial access to the Israeli market; expect to receive EU-GMP certification for extracted products in the second half of 2022.
- Continued progress on streamlining the business, while investing in revenue-generating sales functions. SG&A expenses were reduced by approximately 36% in the first six months of 2022 vs. the same period in 2021, with further reductions expected.
- The company recorded $ 2,119, compared to $446 in the same quarter of 2021
- Net Income(Loss) was $ 3,517 versus $ 4,463 in a similar quarter last year
- Net Income (Loss) per share was $0.02 versus 0.05 in 2021
- The company had cash equivalents of $1.0 million on June 30, 2022, compared to $5.3 million on December 31, 2021. Note: all amounts are noted in Canadian dollars.[8]
Leadership[edit]
Management[9][edit]
Bill Petron, CEO, and Chairman of the Board
- Has a diverse and successful background in scaling global manufacturing, logistics, and medical cannabis operations
- Recently co-founded Alternative Medical Enterprises LLC, and co-led it through its December 2020 merger with Verano Holdings LLC. and its subsequent public offering on the CSE in February 2021
- Founded MSI Integrated Solutions headquartered in Porto Alegre, Brazil (1999); and Magnus Logistics Solutions Inc.
Ian D. Atacan, CPA, CMA, MBA: Chief Financial Officer
- More than 25 years of public company experience in strategy, M&A, and financing
- Was previously the CFO of Blueberries Medical Corp. and served as the CFO of Global Atomic Corporation
- Mr. Atacan is a Chartered Professional Accountant (CPA, CMA), MBA (London, UK), and Electrical & Electronics Engineer.
Andrés Felipe Botero, Chief Operating Officer PharmaCielo Colombia
- Was head of Philip Morris Andean Cluster for 20 years, where he oversaw cultivation, manufacturing, quality assurance, supply chain, and distribution
- He served as manager of Philip Morris International’s operations for reduced risk product portfolio in Colombia
Legal Issues[edit]
Legal Claims[edit]
On March 16, 2020, Shareholder rights law firm Robbins LLP announced that a purchaser of PharmaCielo Ltd filed a class action complaint against the Company for alleged violations of the Securities Exchange Act of 1934 between June 21, 2019, and March 2, 2020. According to the claim, PharmaCielo issued a press release in September 2019, announcing that it "ha [d] signed a United States sales agreement with an established multi-state distributor, General Extract LLC." PharmaCielo, later in November released its third quarter results citing it was "nearing completion of [its] extraction and processing center ("RTC"), which will expand the Company's extraction capacity."
Hindenburg Research on March 2, 2020, reported that General Extract LLC was a related party entity with little credible operations run by PharmaCielo's former COO. The report further asserted that PharmaCielo had engaged in misleading business transactions with General Extract and Xphyto Therapeutics, questioning the delayed development of its processing center and general misinformation regarding its production assets. The news saw PharmaCielo’s share prices decline by 63% per share to trade at around $0.51.[10]
- ↑ wsj.com/market-data/quotes/PCLOF/company-people – WSJ. Retrieved on 9/24/2022
- ↑ cnbc.com/quotes/PCLOF?tab=profile – CNBC News. Accessed on 9/24/2022
- ↑ Management's Discussion and Analysis for the Three and Nine Months Ended September 30, 2019, Page 6&7 – PharmaCielo Sec. Report. Retrieved 9/25/2022
- ↑ pharmacielo.com/ Company Profile and Operations – Pharmacielo Ltd Official Website
- ↑ Management's Discussion and Analysis for the Three and Nine Months Ended September 30, 2019, Page 5 – PharmaCielo Sec. Report. Retrieved 9/25/2022.
- ↑ CBD (Cannabidiol) Market Size to Reach USD 47.22 Billion by 2028 - Increased Demand for CBD (Cannabidiol) for Health and Wellness Purposes to Drive Market – Vantage Market Research. Accessed on 9/25/2022
- ↑ PharmaCielo Announces Sales Agreement with Brazilian Phyto-Therapeutic Customer, and Key Management and Board Appointments – PCLOF Official Website
- ↑ PharmaCielo Announces Q2 2022 Financial Results; Upsizes Oversubscribed Debenture Financing – Pharmacielo Website
- ↑ pharmacielo.com/our-company/Management Team – PharmaCielo Website. Retrieved on 9/25/2022
- ↑ Shareholder Alert: Robbins LLP Announces PharmaCielo Ltd. (PCLOF) Sued for Misleading Shareholders – Business Wire. Accessed on 9/25/2022
OTC Symbol: PCLOF | OTC Tier: OTCQX International
