The company is actively trying to stem growing losses.
The parent company of Colombian cannabis cultivator PharmaCielo Colombia Holdings S.A.S., PharmaCielo Ltd. (TSX: PCLO) (OTCQX: PCLOF), raised $3.3 million in its latest investment round. The company issued 3,900 debenture units to raise the funds, with an additional 600 units provided to offset debts to previous service providers and employees.
The move is part of the company’s broader strategy to help grow its international sales and strengthen its operational backbone, it said.
“Our team continues to make steady progress against our internal sales objectives and efficiency targets,” Marc Lustig, chairman and CEO of PharmaCielo, said in a statement.
“While the equity markets remain challenging, the nondilutive capital we continue to raise is a sign of support from current and new investors. I am confident that the team’s consistent work to ensure PharmaCielo is in discussions with the right producers in key global markets, combined with our scalable production base will continue to move us closer to an inflection point in both sales and cash flow.”
The company posted $160,000 in revenue in the latest quarter, which is a steep fall from the $2.1 million reported in the same period last year. Adjusted EBIDTA and net loss figures also slid, coming in at negative $2.1 million and $3.58 million, respectively.
Lustig sticks to the script of signaling to investors that the ship continues to steer steady, despite layoffs meant to accommodate cost cuts across the business.
“Our sales and finance teams have made measurable progress, and I expect these efforts to continue to pay off over the next several quarters,” he said in a statement at the time.
Additionally, PharmaCielo revealed plans to issue more than 2.2 million shares, valued at C$0.22 each, to settle a $500,000 debt owed to certain former employees and service providers. These shares will be under a mandatory four-month hold, in line with Canadian securities regulations.
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