September 25, 2023

PharmaCielo 2020 Losses Worsen Year-on-Year

Toronto-based PharmaCielo – owner of a medical-marijuana production and processing facility in the eastern Medellin suburb of Rionegro – on May 3 posted a full-year 2020 net loss of Cdn$43.7 million (US$35.6 million), worse than the Cdn$34.7 million (US$28 million) loss in 2019.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) came in at a net loss of Cdn$23.5 million (US$19 million), worse than the Cdn$18 million (US$14.6 million) EBITDA net loss in 2019.

Revenues were the only bright spot in 2020, rising to Cdn$2.6 million (US$2.1 million), up from Cdn$787,000 (US$641,000) in 2019.

The company also reported a decline in cash and cash equivalents, to a total ofCdn$8.9 million (US$7.2 million) at December 31, 2020 compared to Cdn$13.7 million (US$11 million) at December 31, 2019. However, “subsequent to the quarter ended December 31, 2020, on April 7, 2021, the company closed an overnight marketed equity offering for gross proceeds of Cdn$13.5 million [US$11 million],” according to the company.

Commenting on the 2020 results, PharmaCielo CEO Henning von Koss stated that the year 2020 “was challenging for the world as a whole and PharmaCielo was not exempted. Despite these challenges, we accomplished several key operational milestones, particularly during the second half of 2020, which have positioned the company for growth through 2021.

“Since joining as CEO in December 2020, I have focused our team on streamlining operations, finishing the Processing and Extraction Centre (PEC) [in Rionegro] and aligning and strengthening our organizational structure, particularly on the sales side.

“The PEC is complete and operating with a unique combination of advanced upstream and downstream technologies that drive a broad portfolio including several value-add CBD, THC-free as well as high-THC content formulations. We are operating at a lower cost structure, and the organization is focused on execution, with recent entries into the UK, Swiss and Brazilian markets highlighting the success of our revised end market focus.

“The global cannabinoid supply chain continues to grow and mature. With our operational foundation complete and awareness growing, evidenced by growth in the number of potential customers requesting appointments to confirm GMP compliance, it is time to build-out a dedicated sales organization to secure PharmaCielo’s position as a preferred B2B supplier of cannabinoid inputs,” he concluded.

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