PharmaCielo Cannabis Co. Narrows Net Loss By 31% YoY In Q1, CEO Says Cost Reduction Efforts Showing Results

PharmaCielo Ltd. PCLO PCLOF announced its financial results on Thursday for the fourth quarter and year ended December 31, 2023, as well as for the first quarter ended March 31, 2024.

The Canadian parent of Colombia’s cultivator and producer of dried flower and medicinal-grade cannabis extracts, PharmaCielo Colombia Holdings S.A.S., also said that effective as of July 3, 2024, its principal regulator, the Ontario Securities Commission has revoked its failure to file a cease trade order that was issued on May 7, 2024, due to the delay in filing its audited annual consolidated financial statements for the year ended December 31, 2023.

“Our team has been unwavering in their efforts to drastically reduce costs and optimize operations while expanding our sales reach," said Marc Lustig, chairman and CEO of PharmaCielo. "The global landscape for cannabinoid-based drugs and therapeutics is expanding, and we are strategically positioned to seize opportunities in regions such as Latin America, Australia, and Europe."

Read Also: This Latin American Cannabis Co. Plans To Expand In Thailand Amid Significant Shifts In Weed Regulation Landscape

Q1 2024 Financial Highlights

• Revenue totaled CA$240 000 ($176,200), compared to CA$786 000 in the prior year's period and CA$244 000 in the prior quarter.
• Adjusted EBITDA came in negative at $1.26 million, representing a year-over-year improvement from an adjusted EBITDA loss of CA$1.9 million in the first quarter of fiscal 2023 and an adjusted EBITDA loss of CA$1.4 million in the fourth quarter.
• Net loss was CA$2.4 million, down from a net loss of CA$3.5 million in the quarter ended March 31, 2023, and CA$6.4 million net loss in the prior period.
• The company reduced salaries and wages by $406,445, office and general expenses by $157,498 and consulting fees by $61,723, all compared to the quarter ended March 31, 2023.

FY 2023 Financial Highlights

• Revenue amounted to CA$1.54 million, down from CA$5.3 million in the prior year.
• Adjusted EBITDA came in negative at CA$6.76 million, down from CA$7.2 million for the twelve months ended Dec. 31, 2022.
• Net loss totaled CA$16.3 million, up from a CA$14.5 million net loss in the prior year.
• The company reduced consulting fees by CA$235,761 in 2023, office and general expenses by $419,543, and professional fees by $235,962, all compared to the year ended December 31, 2022.

PharmaCielo reported the TSX Venture Exchange has changed its tier classification from tier 1 to tier 2, effective June 20, 2024, as the company does not meet the exchange’s tier 1 continued listing requirements.

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• Cannabis Extracts Producer PharmaCielo Narrows Loss, Cuts Expenses In Q3, CEO Projects Higher Profitability

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