Pharmacielo closes sale of La Margarita property

Executive Summary

• Pharmacielo completed the sale of its La Margarita property for a gross price of 26 billion Colombian pesos (≈ CAD 8.6 million).
• Proceeds were used to fully repay a Banco Agrario loan of 6.13 billion COP (≈ CAD 2.1 million), with ~ COP 900 million of accrued interest forgiven.
• Approximately CAD 4.0 million of the remaining proceeds are being transferred to Canada for payment of matured debentures and other mandatory corporate obligations, strengthening the balance sheet.

Key Details

• Transaction timeline: Preliminary sale agreement signed on 5 June 2025; closing completed thereafter.
• Sale price: 26 billion Colombian pesos (≈ CAD 8.6 million). No finders’ fees were paid.
• Loan repayment: Full repayment of Banco Agrario de Colombia loan – principal and interest totalling 6,129,153,444 COP (≈ CAD 2.1 million). Accrued interest of ~ 900 million COP (~ CAD 300,000) was negotiated and forgiven.
• Proceeds allocation: After loan repayment and other Colombian commitments, roughly CAD 4.0 million will be transferred to Canada for partial payment of matured debentures and other mandatory corporate payments.
• Strategic rationale: Divestiture of a non‑core asset to optimize the portfolio, reduce interest burden, and focus resources on core growth opportunities in priority markets (Latin America, Brazil, South Africa, Australia, EU).
• Management comment: Marc Lustig, Chairman & CEO, highlighted that the transaction strengthens the balance sheet, reduces debt service costs, and enables focus on expanding sales pipelines and strategic partnerships.
• Business outlook: Company aims for profitability in 2026, emphasizing cost‑structure improvements, right‑sizing cultivation capacity, and expansion of CBD/THC product lines across multiple international markets.

Notable Quotes

“This transaction is a positive step forward for Pharmacielo. 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 Ltd.