PharmaCielo Ltd.’s (TSXV : PCLO) and (OTC pink : PCLOF), which are listed on the NYSE, have more than tripled their sales from the previous quarter. However, filings indicate that the company is facing liquidity issues.
Canadian-based cannabis firm International Cannabis reported revenues of C$1.13million in the fourth quarter that ended Dec. 31. This is 362% higher than the C$244,000 revenue reported in the similar period one year ago.
Marc Lustig’s statement stated that PharmaCielo has delivered robust revenue growth throughout 2024. This was achieved by entering new international markets strategically while maintaining cost discipline. These complementary initiatives have significantly strengthened our financial base.
The firm had only C$147.939 cash in hand at the end of the year. The company’s C$12.8M in debentures due on December 24, 2024 are the most concerning. They have been negotiating an extension to 2026.
PharmaCielo’s revenue for the entire year was C$3.48million, up 126% from C$1.54million in 2023. The annual net loss was reduced from C$16.3 to C$9.14. Management said that the better performance is due to an expansion of its customer base, and diversification into dried flower and cannabis extracts.
Lustig added, “With a product portfolio that includes more than CBD isolates, we will be able to satisfy the changing needs of our customers around the world and continue to grow revenue.”
Its fourth-quarter gross profit was C$483,000. This compares to C$217,000 loss in the same period last year. This company reduced its EBITDA losses to C$299,000, from C$1.4million in the previous period.
According to documents, the company has been cutting costs. This includes office expenses of C$591,000 and salaries of C$1,19 million, as well as marketing costs C$428,000 less than 2023.
In the last four quarters we’ve steadily moved towards breakeven adjusted EBITDA,” said Lustig. We are starting 2025 in a strong position, as we do not need to make major investments for us to reach full commercial capability.
PharmaCielo has greenhouses located in Rionegro, Colombia. The processing center can process 20 tons cannabis biomass per month. It holds both licenses to cultivate and manufacture psychoactive as well as nonpsychoactive marijuana.
Sales have expanded across the Americas, Australia, Africa and Europe, with particular strength in Latin America, especially Brazil, the company in its MD&A. Management noted that the company was still a “going concern”.
It is expected that the company will achieve positive EBITDA in 2025 and positive cash flow, as sales are predicted to grow in the latter half of this year. PharmaCielo has announced it plans to raise additional capital for growth through a privately placed private placement. This company plans to also issue 5,000,000 common shares in order to settle debts of around C$500,000 to former employees, service providers and directors.
The company’s financial year ended March 31 instead of December 31, and filed audited Financial Statements for the 15-month period ending in March 31.