EDITOR: | May 11th, 2018

PharmaCielo and AAJ $60M raise could propagate a “stand out” among Canadian cannabis companies

| May 11, 2018 | No Comments
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PharmaCielo Ltd., a private Canadian company with a license to cultivate and process cannabis in Columbia, announced the appointed a syndicate of agents co-led by Echelon Wealth Partners Inc., Cormark Securities Inc. and GMP Securities LP to sell on a commercially reasonable efforts private placement basis, subscription receipts of PharmaCielo, for aggregate gross proceeds of up to approximately $60-million at a price of $3.35 per subscription receipt. The agents will also have an option, exercisable, in whole or in part, up to 48 hours prior to the closing date (of the offering), to increase the size of the offering by up to an additional 15 per cent of the number of subscription receipts sold under the offering for additional gross proceeds to PharmaCielo of up to $9-million.

On April 3, 2018 PharmaCielo and AAJ Capital 1 Corp. announced a letter of intent to enter into a definitive agreement for a business combination transaction with AAJ, a capital pool company listed on the TSX Venture Exchange, that will constitute the qualifying transaction for AAJ.

Upon completion of the qualifying transaction, holders of PharmaCielo shares will receive resulting issuer shares and shareholders of PharmaCielo will hold a majority of the outstanding common shares of the resulting issuer. AAJ’s name will be changed to PharmaCielo Corp., subject to regulatory and board approval.

But the resulting publicly-listed entity will stand out among Canadian cannabis companies for its unique grow and processing approach location with capacity to supply cannabis for the recreational and medical markets of Canada and other jurisdiction where cannabis is permitted by law.

PharmaCielo’s principal (and wholly owned) subsidiary is PharmaCielo Colombia Holdings SAS, which is headquartered at its nursery and propagation centre in Rionegro, Colombia.

The equatorial climate and photoperiod of Columbia offer unique conditions for cannabis growth, which is expected to provide a cost-saving advantage to PharmaCielo.

PharmaCielo plans to use the net proceeds of a $60M offering to construct facilities necessary for the production and processing of medicinal cannabis extracts and oils, and general corporate purposes.

On October 23, 2017, PharmaCielo received the first Colombian licences for the cultivation of cannabis with unrestricted percentages of tetrahydrocannabinol (THC) and cannabidiol (CBD) alike.

On February 2, 2016, PharmaCielo became the first company to formally apply to the Colombian Ministry of Health and the National Drug Counsel (Consejo Nacional de Estupefacientes) for licensing consideration.

On June 28, 2016 PharmaCielo was granted Columbia’s first cannabis processing and oil processing licence.

On December 22, 2015, Colombian President Juan Manuel Santos signed regulatory Decree 2467 to codify the apply for processing and extraction (oils and related products), cultivation and exportation licences for scientific and medical purposes.

PharmaCielo is now commencing cultivation and processing of large volumes of premium quality, all-natural cannabis flower into highly standardized, medicinal-grade oil extracts and related products.

PharmaCielo is a global company headquartered in Canada and with a focus on processing and supplying all natural, medicinal-grade cannabis oil extracts and related products to large channel distributors.


Dr. Luc Duchesne

Editor:

Dr. Luc C. Duchesne is a Speaker and Author with a PhD in Biochemistry. With three decades of scientific and business experience, he has published ... <Read more about Dr. Luc Duchesne>


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