Business
PharmaCielo Announces the Issuance of Interest Shares and Update on Insider Bridge Financing
All figures in Canadian dollars ($) unless otherwise specified Toronto, Ontario and Rionegro, C...
About this update from Pharmacielo Ltd.
[{"type":"text","content":"PharmaCielo Announces the Issuance of Interest Shares and Update on Insider Bridge FinancingAll figures in Canadian dollars ($) unless otherwise specifiedToronto, Ontario and Rionegro, Colombia--(Newsfile Corp. - May 19, 2026) - PharmaCielo Ltd. (TSXV: PCLO) (OTC Pink: PCLOF) (\"PharmaCielo\" or the \"Company\"), the Canadian parent of Colombia's premier cultivator and producer of dried flower and medicinal-grade cannabis extracts, PharmaCielo Colombia Holdings S.A.S., today announced that, as approved by the TSX Venture Exchange (the \"TSXV\"), it has issued 11,145,999 common shares of PharmaCielo (\"Interest Shares\"), at an effective price of $0.08 per Interest Share, in satisfaction of an aggregate of $891,681.85 of semi-annual interest payable to holders of the Company's 11% secured debentures (the \"Debentures\") (the \"Shares for Debt Transaction\"). The effective price of the Interest Shares was determined by dividing the cash interest otherwise payable by the number of shares issuable under each Debenture, in accordance with the terms of the Debentures and TSXV Policy 4.3, section 3.3. The Interest Shares are subject to the balance, if any, of the 4-month statutory hold period.The issuance of Interest Shares to L5 Capital Inc., Marc Lustig, William Petron and Ian Atacan constitutes a \"related party transaction\" within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (\"MI 61-101\"). The Company is relying on exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 pursuant to sections 5.5(a) and 5.7(1)(a) of MI 61-101, as the fair market value of the transaction does not exceed 25% of the Company's market capitalization.Insider Bridge FinancingSince February 2024, the Company's working capital requirements have been supported primarily through a secured insider bridge loan facility provided by Marc Lustig and certain insiders of the Company, bearing interest at 11% per annum. To date, PharmaCielo has drawn approximately $2.5 million of the $3.0 million commitment.The Company believes this continued financial support reflects insider confidence in PharmaCielo's long term strategy and ongoing operations. The bridge financing has assisted the Company in maintaining operations while continuing to focus on cost ...