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PharmaCielo Ltd (OTCMKTS: PCLOF) Closes First Tranche Of $5 Million Non-Brokered Private Placement



PharmaCielo Ltd (OTCMKTS: PCLOF), the parent of Colombia’s leading medicinal-grade cannabis extracts grower and producer, PharmaCielo Colombia Holdings S.A.S., has announced that it has finalized the first tranches of the previously announced non-brokered private placement offering that comprises 5,000 debenture units. Each unit was issued at $1,000 per unit for gross proceeds of $5 million.

PharmaCielo completes $4 million debenture offering 

On December 24, 2021, the company completed an initial tranche of the Offering consisting of $4 million principal amount of Units, and on December 31, 2021, the company completed a second tranche consisting of $1 million principal amount of Units. This original round of funding was made up entirely of insiders. On or about January 14, 2022, the Company expects to complete the issuance of up to an additional $10 million principal amount of Units.

The proceeds from the Offering will be used for operating capital, operations, and the expansion of the international psychoactive dry cannabis flower sales initiative.

PharmaCielo has the right to redeem all or any of the debentures periodically at different percentages of face value that include at 105% at any time before December 24, 2022, at 103% at any time after December 24, 2022, and before December 24, 2023, and at 101% on or after December 24, 2023. Interestingly, on each occasion, the company will redeem the debentures and unpaid and accrued interest, excluding the redemption date.

Debentures can be repurchases at 105% if there is a change of ownership 

Debentures holders have the right to have their Debentures repurchased at 105 percent of face value, including accrued and unpaid interest through, but not including, the date of repurchase if the company changes ownership.

Under applicable Canadian securities laws, the Debentures, Debenture Warrants, and any Common Shares issuable upon exercise of the Debenture Warrants are subject to a statutory hold period that expires on April 25, 2022, for Units issued on December 24, 2021, and May 1, 2022, for Units issued on December 31, 2021. In addition, a four-month hold period shall apply to successive tranches of Units, beginning on the date of issuance of the applicable Units.

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