Mr. Marc Lustig reports

PHARMACIELO RAISES $3.3 MILLION UNDER PREVIOUSLY ANNOUNCED NON-BROKERED PRIVATE PLACEMENT

Pharmacielo Ltd. has closed another tranche of the non-brokered private placement (the new offering) that was announced on June 29, 2023. Under the new offering, to date, Pharmacielo has issued 3,900 debenture units, for aggregate proceeds of $3.3-million, while 600 units have been issued to satisfy amounts owing to certain previous service providers and employees. The company is continuing to issue the units in multiple closings and using the proceeds from the sale of the units for operations, working capital and the build-out of its international sales program.

Summary:

• Today the company closed the latest tranche consisting of 1,500 units for aggregate proceeds of $1.5-million.
• The company also announced that it has agreed to issue shares and debt in settlement of certain amounts owing.

Management commentary

"Our team continues to make steady progress against our internal sales objectives and efficiency targets," said Marc Lustig, chairman and chief executive officer of Pharmacielo. "While the equity markets remain challenging, the non-dilutive capital we continue to raise is a sign of support from current and new investors. I am confident that the team's consistent work to ensure Pharmacielo is in discussions with the right producers in key global markets, combined with our scalable production base, will continue to move us closer to an inflection point in both sales and cash flow."

Shares for settlement of certain amounts owing

Today, the company also announced that it intends to issue, subject to the approval of the TSX Venture Exchange, up to 2,272,727 common shares of the company in satisfaction of an aggregate of up to $500,000 of debt owed to certain former service providers and former employees of the company. The deemed price of the common shares to be issued has been approved by the TSX-V to be 22 cents, being the higher of the price of common shares at market close, or the 10-day volume-weighted average price on the date the board of directors of the corporation approved issuance of shares.

The settlement shares will be subject to a four-month hold period under applicable Canadian securities laws, starting from the date of issuance of the settlement shares.

About Pharmacielo Ltd.

Pharmacielo is a global company, headquartered in Canada, with a focus on ethical and sustainable cultivating, processing and supply of all natural, pharmaceutical-grade medical dried cannabis flower and cannabis products to large channel distributors. Pharmacielo's principal (and wholly owned) subsidiary is Pharmacielo Colombia Holdings S.A.S., headquartered at its cultivation and processing centre located in Rionegro, Colombia.

The board of directors and executive team of Pharmacielo comprise a diversely talented group of international business executives and specialists with relevant and varied expertise. Pharmacielo recognized the significant role that Colombia's ideal location plays in building a sustainable business in the medical cannabis industry and the company, together with its directors and executives, is executing on a business plan focused on supplying the international marketplace.

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