PharmaCielo Announces 2026 First Quarter Results

Revenue More Than Quadruples from Broadening Geographic Footprint and New Flower Sales to Europe

Toronto, Ontario and Rionegro, Colombia--(Newsfile Corp. - August 28, 2026) - PharmaCielo Ltd.(TSXV: PCLO) (OTC Pink: PCLOF)("PharmaCielo" or the "Company"), the Canadian parent of PharmaCielo Colombia Holdings S.A.S., Colombia's leading cultivator and producer of dried flower and food- and medicinal-grade cannabis extracts, today reported its unaudited financial results for the three months ended June 30, 2026.

Q1 Highlights

• Revenue increased to $1.4 million for the quarter, compared with $0.3 million in the corresponding quarter of 2025, driven primarily by broader geographic footprint and new flower sales to Europe.
• Gross profit: $0.5 million, versus a $0.1 million gross loss in Q1 2025.
• Adjusted EBITDA loss: $0.7 million, versus $0.4 million, reflecting a one-time non-recurring expense.
• With increasing sales volumes and a completely overhauled cost structure, the Company expects to generate positive cash flow from operations going forward.

*Adjusted EBITDA is a non-IFRS measure; see the Company's MD&A for the reconciliation.

Management Commentary

Marc Lustig, Chairman and CEO: "Revenue more than quadrupled to $1.4 million and gross profit improved to $0.5 million, reflecting stronger cannabis sales and a leaner operating platform. We remain focused on recurring export volumes, higher-value dried flower and extracts, and disciplined cost management."

Outlook

PharmaCielo is prioritizing recurring export orders, deeper international partnerships, and aligning production with demand across Latin America, Australia, South Africa and Europe. Major growth capex at its Production and Extraction Centre is complete; sustained positive operating cash flow will be driven by higher sales volumes, cost discipline and adequate working capital. Full financial statements and MD&A are available on SEDAR+ and at pharmacielo.com.

Issuance of Debenture Interest Shares

Following TSXV approval, on August 24, 2026, PharmaCielo issued 9,721,443 common shares of the Company (the "Interest Shares"), at an effective price of $0.08 per Interest Share, in satisfaction of an aggregate of $777,717.33 of semi-annual interest payable to holders of the Company's 11% secured debentures (the "Debentures"). Following the issuance, the Company had 221,005,073 common shares issued and outstanding.

The effective price of the Interest Shares was determined by dividing the cash interest otherwise payable by the number of shares issuable under each Debenture, in accordance with the terms of the Debentures and TSXV Policy 4.3, Section 3.3. The Interest Shares are subject to the balance, if any, of the applicable statutory hold period under Canadian securities laws.

The issuance of Interest Shares to L5 Capital Inc., Marc Lustig, William Petron and Ian Atacan constituted a "related party transaction" within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company relied on exemptions from the formal valuation and minority shareholder approval requirements contained in Sections 5.5(a) and 5.7(1)(a) of MI 61-101, as the fair market value of the transaction did not exceed 25% of the Company's market capitalization.

For further detailed information and analysis, please see the unaudited condensed interim consolidated financial statements and management's discussion and analysis for the three months ended June 30, 2026, as filed on SEDAR+ and available at pharmacielo.com.

About PharmaCielo

PharmaCielo Ltd. (TSXV: PCLO) (OTC Pink: PCLOF) is a Canadian-headquartered producer of dried flower and food- and medicinal-grade cannabis extracts, through its wholly owned subsidiary PharmaCielo Colombia Holdings S.A.S. in Rionegro, Colombia.

Forward-Looking Statements

This release contains forward-looking statements regarding export growth, international expansion, sales, production, working capital, financing and future operating performance. These are based on current expectations and subject to risks - including financing, sales and cash flow generation, regulatory approval, Colombian operations, and pricing, currency, competitive and political factors - that may cause actual results to differ materially. PharmaCielo undertakes no obligation to update these statements except as required by law. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/311888

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