It appears that PharmaCielo Ltd (TSXV: PCLO) has effectively locked in a new lead director. The company announced yesterday evening that Marc Lustig, the well known cannabis industry executive, had agreed to join the board of directors of the firm upon the company managing to successfully raise at least $5.0 million in a private placement. That threshold appears to have been met.
The placement, as announced last night, was initially for $5.0 million, with units of the company being sold at $0.50 a piece. Each unit contains one common share and one half of a common share purchase warrant, with an exercise price of $0.65 per share for a period of two years. In connection with the offering, Lustig was indicated as being the lead order for the financing, however further specifics were not provided.
This morning, the company subsequently announced that the financing has been expanded from $5.0 million in gross proceeds to that of $10 million, effectively locking in Lustig as being the new lead director of the firm. In connection with the appointment, 3.0 million stock options with an exercise price of $0.63 are to be granted to Lustig, as well as 2.0 million restricted share units. The RSU’s, based on yesterdays closing price, effectively amounts to a $1.4 million signing bonus for Lustig, with the vesting to occur six and twelve months from the date of issue in two equal sized tranches.
Net proceeds from the financing are to be used for working capital and general corporate purposes. The financing is currently expected to close November 20, 2020.
PharmaCielo last traded at $0.70 on the TSX Venture.
Information for this briefing was found via Sedar and PharmaCielo Ltd. 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.
