PharmaCielo Ltd. (TSXV:PCLO), one of the Canadian marijuana stocks, has seen its share price surge since it began trading on the TSX Venture Exchange
SmallCapPower | January 23, 2019: PharmaCielo Ltd. (TSXV:PCLO), one of the Canadian cannabis stocks, began trading on the TSX Venture Exchange on January 18, 2019 and its stock price continues to make new highs. After opening at $4.95, PharmaCielo stock ended the day up 18%, and is currently trading at $9.12, which is an 84% gain from the open just three trading days ago.
PharmaCielo is the Canadian parent of Colombia’s cultivator and producer of medicinal-grade cannabis oil, PharmaCielo Colombia Holdings S.A.S.
PharmaCielo plans to scale its area under cultivation from 5.3 hectares of open-air greenhouse to ~20 hectares by end-2019 and complete its 2,300 sq. m. GMP2 certified Research and Technology Centre oil processing & product innovation facility by Q2 2019. PharmaCielo expects to receive receipt of registration from the Colombian Ministry of Agriculture for multiple cannabis strains and signed agreements with Colombian and international distributors & manufacturers to bring consumer products to market. It also plans to open the first bannered Clínica co-located with Centro Oncológico de Antioquia (COA), part of an oncology practitioner network with complementary objectives focused on treatment of five million patients.
PharmaCielo had US$31.4 million in cash as at December 31, 2018. In 2019, the Company also expects to begin cannabis oil product sales in key markets to generate revenue.
PharmaCielo CEO David Attard stated, “2019 will be an exciting year for PharmaCielo shareholders. We have constructed a platform with the sophistication and scale to rapidly become a value-added provider of cannabinoid inputs to some of the world’s largest organizations. Global, consumer-facing companies are accustomed to supply chain partners that can provide inputs of consistently high quality, in large volume. As the most sophisticated and scalable cannabis producer in South America, PharmaCielo is ready to meet these requirements and to create significant value for shareholders and partners, in the process. We are on strong footing as we launch scale production and sales in 2019. The Company is already producing medicinal-grade cannabis oil, is well capitalized and has near-term revenue opportunities both in Colombia and target international jurisdictions.”
PharmaCielo stock trades at a market capitalization of C$850.5 million with a price-to-book multiple of 2962.9x.
Disclosure: Neither the author nor his family own shares in the company mentioned above.
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