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All amounts expressed in Canadian dollars unless otherwise noted

TORONTO and RIONEGRO, Colombia, Oct. 06, 2025 (GLOBE NEWSWIRE) -- PharmaCielo Ltd. (“PharmaCielo” or the“Company”) (TSXV: PCLO, OTC: PCLOF), the Canadian parent of Colombia's premier cultivator and producer of dried flower and medicinal-grade cannabis extracts, PharmaCielo Colombia Holdings S.A.S., today announced the closing of the sale of its La Margarita property in Carmen de Viboral, Antioquia, Colombia, to Flores El Capiro S.A. (“Flores El Capiro”), and the filing of its fifteen months ended March 31, 2025 audited financial statements.

La Margarita Land Sale Transaction Highlights

• Transaction Details: The preliminary sale agreement was signed on June 5, 2025. PharmaCielo and Flores El Capiro are arm's-length parties. No finder's fees were paid in connection with the transaction.
• Gross Sale Price: COP $26,000,000,000 (approximately CAD $8.6 million).
• Loan Repayment: Proceeds were used to fully repay the outstanding Banco Agrario de Colombia loan (“Banco Agrario Loan”) , totalling COP $6,129,153,444 (CAD $2.1 million), including principal, interest, and legal costs. Importantly, accrued interest of approximately COP $900 million (approximately CAD $300,000) was successfully negotiated and forgiven.
• Proceeds Allocation: Following repayment of the Banco Agrario Loan and other outstanding commitments in Colombia, approximately $4.0 million of the proceeds are being transferred to Canada for partial payment of matured debentures and other mandatory corporate payments.
• Strategic Rationale The sale of La Margarita aligns with PharmaCielo's strategic initiative to optimize its asset portfolio and strengthen its financial position, allowing the Company to concentrate resources on core growth opportunities in priority markets.

Marc Lustig, Chairman and CEO of PharmaCielo, commented,“This transaction is a positive step forward for PharmaCielo. By divesting a non-core asset and eliminating the Banco Agrario Loan, we have strengthened our balance sheet and reduced our interest burden. Our team can now focus on our highest-value opportunities: expanding our sales pipeline and advancing key strategic partnerships to achieve profitability.”

Summary Financials – Fifth Quarter and Fiscal Year Ended March 31, 2025

	Three months ended	Fifteen months ended	Twelve months ended
(000's)	Mar 31 2025	Mar 31 2024	Mar 31 2025	Dec 31 2023
Revenue	$	487		$	240		$	3,967		$	1,542
Adjusted EBITDA* (Loss)	$	(801	)	$	(1,264	)	$	(3,543	)	$	(6,762	)
Net Loss	$	(2,228	)	$	(2,420	)	$	(11,370	)	$	(16,298	)
Net Loss per Share	$	(0.013	)	$	(0.014	)	$	(0.065	)	$	(0.102	)

*Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). The term Adjusted EBITDA does not have any standardized meaning under IFRS. Therefore, it may not be comparable to similar measures presented by other companies.

Business Outlook

• PharmaCielo continues to improve its cost structure, eliminating non-essential expenditures, right sizing its cultivation capacity and operations.
• With increasing and more diversified sales during the past fifteen months, PharmaCielo is primed to be a profitable company in 2026. The Company is now well established in Latin America with a focus on Brazil and has continued to make inroads to additional jurisdictions such as South Africa, Australia, and European Union (“EU”) with its CBD isolate, THC Distillate and GACP certified dried cannabis flower.
• PharmaCielo has three major initiatives to remain agile in the nascent and continuously changing international cannabis markets:
  • A clear focus on business opportunities across Latin America, Australia, South Africa, and strategic European markets. The company has transitioned from a narrow pursuit of EU-GMP certification to a broader, client-oriented quality approach. By maintaining EU-GMP compliance and reinforcing a robust Quality Management System to meet customer audit requirements, Pharmacielo continues to deliver world-class products while optimizing operational costs and capital investments.
  • Positioning a full portfolio of CBD isolate, CBD extracts, THC extracts, and formulations from an EU-GMP compliant facility, providing excellent quality at competitive prices that safeguard strong client margins. This strategy allows differentiation in international markets, cultivation of long-term partnerships, and reinforcement of a position as a trusted supplier.
  • Increasing exports of our GACP-certified dried cannabis flower, positioning it as a reliable raw material that clients transform and commercialize as GMP. By consolidating consistent supply and aligning with partners in key markets such as Australia, Germany, Poland, and the UK, we ensure flexibility to meet varying regulatory and commercial requirements while building a scalable pathway from GACP to GMP.

For further detailed information and analysis, please see the financial statements and management's discussion and analysis for the period ending March 31, 2025, as posted at sedarplus and .

About PharmaCielo
PharmaCielo Ltd. (TSXV: PCLO, OTC: PCLOF) is a global company, headquartered in Canada, with a focus on ethical and sustainable processing and supplying of all natural, pharmaceutical-grade medical 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 center located in Rionegro, Colombia.

About Flores El Capiro
Flores El Capiro S.A. is a leading Colombian flower grower and exporter with longstanding operations in Carmen de Viboral, Antioquia.

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Forward-Looking Statements

This news release contains forward-looking statements. Forward-looking statements can be identified by the use of words such as“expects”,“is expected”,“intends”,“anticipates”,“believes”, or variations of such words and phrases or state that certain actions, events or results“may” or“will” be taken, occur or be completed or achieved.

Forward-looking statements can be affected by known and unknown risks, uncertainties and other factors, including changes to PharmaCielo's development plans, the failure to obtain and maintain all necessary regulatory approvals relating to the export of cannabinoid products and the import of these products into other countries, TSX Venture Exchange approval, the inability to export or distribute commercial products through sales channels as anticipated due to economic or operational circumstances, risks associated with operating in Colombia, fluctuation of the market price for the Company's products, risks associated with global economic or geopolitical uncertainty or other developments, risks related to retention of key Company personnel, currency exchange risk, competition in PharmaCielo's market and other risks discussed or referred to under the heading“Risk Factors” in PharmaCielo's Annual Information Form for 2019, and the Management's Discussion and Analysis for the fifteen months ended March 31, 2025 which are both available at . Accordingly, readers should not place undue reliance on forward-looking statements. Except as required by law, PharmaCielo undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

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