PharmaCielo Looks To Raise $15.0 Million Via 11% Secured Debentures
PharmaCielo (TSXV: PCLO) is returning to the trough for more investor dollars. The firm this morning indicated that it intends to conduct a non-brokered private placement to raise funds via the sale of secured debentures.
The financing will see the company look to raise gross proceeds of up to $15.0 million, with each debenture unit priced at $1,000. The debt is to bear interest at a rate of 11% per annum, with each debenture to also include 250 common share purchase warrants. Warrants are to be valid for a period of three years, and will allow holders to acquire a share in the company at a 50% premium to the equity price of the company at the time of the financing closing.
The debt is to be for a term of three years, and secured by mortgages on the real property of the firm and its subsidiaries. It’s also redeemable by the company at any time, with a 105% premium to be paid if redeemed in the first year, a 103$ premium if redeemed in the second year, and a 101% premium thereafter.
The financing is currently slated to close by December 30, with funds to be used for operations, working capital, and the build-out of the firms dry flower sales program.
The financing follows a $13.5 million overnight marketed offering conducted back in April.
PharmaCielo last traded at $0.93 on the TSX Venture.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
