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PharmaCielo Ltd. Announces Best Efforts Private Placement Offering
PharmaCielo Ltd. Announces Best Efforts Private Placement Offering Canada NewsWire...
About this update from Pharmacielo Ltd.
[{"type":"text","content":"\n\n\n\nPharmaCielo Ltd. Announces Best Efforts Private Placement Offering\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n\n\n\n\n\n\n\nCanada NewsWire\nTORONTO, April 1, 2020\n\n\n\n/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/\n TORONTO, April 1, 2020 /CNW/ - PharmaCielo Ltd. (\"PharmaCielo\" or the \"Company\") (TSXV: PCLO, OTCQX: PCLOF) is pleased to announce that, subject to all necessary approvals, it is undertaking a \"best efforts\" private placement offering of special warrants of the Company (the \"Special Warrants\") at a price of $0.75 (the \"Offering Price\") per Special Warrant (the \"Offering\"). The Company has received interest from multiple investors for the Offering, including a subscription agreement for Special Warrants totaling $5 million, conditional on aggregate proceeds committed to the Company pursuant to the Offering of $9 million. The size of the Offering may increase upon exercise by the Agents (as defined herein) of the Overallotment Option (as defined herein). The Offering will be conducted through a syndicate of agents led by Cormark Securities Inc. (collectively, the \"Agents\"). Certain members of the board of directors (the \"Board\") and management of the Company will subscribe for Special Warrants under the Offering in amounts to be determined.\nThe Company has continued to see increased international demand for its high-grade CBD isolate and broad-spectrum CBD oil. In January this year, the Company announced two multi-year commercial agreements representing demand for not less than 36,000 kg of the Company's products with additional substantial sales negotiations progressing for future announcement. Phase 1 of the Company's processing facility is expected to be operational in mid-year with a monthly capacity of 2,000kg to 2,500kg per month, a 4.0-5.0x increase over the Company's current processing capacity of 500kg per month. Management believes this processing capacity will more than support both the Company's 1.2 million square feet of h...