PharmaCielo Completes La Margarita Land Sale, Repays Banco Agrario Loan, Strengthens Balance Sheet, Completes Audit

Executive Summary

• PharmaCielo closed the sale of its La Margarita property for approximately CAD $8.6 million, using proceeds to fully repay a COP $6.1 billion loan and transfer roughly CAD $4.0 million to Canada for debenture payments and other corporate obligations.
• The company filed audited financial statements for the fifteen‑month period ended March 31 2025, reporting revenue of $487 k (three months) and a net loss of $2.23 M for the quarter, with an adjusted EBITDA loss narrowing to $(801) k.
• Management highlighted that the divestiture strengthens the balance sheet, reduces interest burden, and positions PharmaCielo to focus on core growth markets and achieve profitability in 2026.

Key Details

• Transaction Highlights
• Preliminary sale agreement signed June 5 2025; parties are arm’s‑length with no finder’s fees.
• Gross sale price: COP $26,000,000,000 (≈ CAD $8.6 million).
• Loan repayment: Full repayment of Banco Agrario loan – COP $6,129,153,444 (≈ CAD $2.1 million), including principal, interest, and legal costs; accrued interest of ~COP $900 million (~CAD $300k) was forgiven.

• Proceeds allocation: After loan repayment, approximately CAD $4.0 million transferred to Canada for partial payment of matured debentures and other mandatory corporate payments.

• Financial Results – Fifteen Months Ended March 31 2025

• Revenue (three months): $487 k; fifteen‑month revenue: $240 k; twelve‑month revenue: $3,967 k vs. $1,542 k prior year.
• Adjusted EBITDA loss (three months): $(801) k; fifteen‑month loss: $(3,543) k; twelve‑month loss: $(6,762) k.
• Net loss (three months): $(2,228) k; fifteen‑month net loss: $(11,370) k; twelve‑month net loss: $(16,298) k.

• Net loss per share (three months): $(0.013); fifteen‑month: $(0.065); twelve‑month: $(0.102).

• Strategic Rationale

• Divestiture of non‑core La Margarita asset to optimize portfolio and strengthen financial position.

• Elimination of Banco Agrario loan reduces interest expense, improving balance sheet flexibility.

• Management Commentary

• Marc Lustig, Chairman & CEO: “This transaction is a positive step forward… our team can now focus on highest‑value opportunities… expanding sales pipeline and advancing strategic partnerships to achieve profitability.”

• Business Outlook

• Ongoing cost‑structure improvements, right‑sizing cultivation capacity.
• Anticipates profitability in 2026 driven by diversified sales across Latin America, Brazil focus, and expansion into South Africa, Australia, and EU markets with CBD isolate, THC distillate, and GACP‑certified dried flower.
• Three strategic initiatives: (1) geographic market focus; (2) full portfolio of GMP‑compliant extracts; (3) scaling exports of GACP‑certified flower to key partners in Australia, Germany, Poland, UK.

Notable Quotes

• “By divesting a non‑core asset and eliminating the Banco Agrario Loan, we have strengthened our balance sheet and reduced our interest burden.” – Marc Lustig, Chairman & CEO, PharmaCielo.