It appears that PharmaCielo (TSXV: PCLO) is having a difficult time raising funds for its operations. The firm this morning announced further delays to the final closing of a financing announced in December.
The company is currently looking to raise $15.0 million from the sale of debenture units in a non-brokered offering. The units bear interest at a rate of 11% per annum, are valid for three years, and contain 250 common share purchase warrants. Warrants are valid for a period of 36 months, and contain a maturity of 50% over the offering price at the time of the initial closing. Debt under the offering is secured by the assets of the company.
Originally estimating to sell 15,000 units at $1,000 per each, the firm expected to close the offering on December 30, with proceeds being used for operations, working capital, and the build-out of its dry flower sales program.
However, the firm managed to close just $5.0 million in gross proceeds on December 31, which included a portion of insider participation.
The remaining portion of the financing however is now not expected to close until March 4, pending ongoing discussions with certain parties.
PharmaCielo last traded at $1.07 on the TSX Venture.
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