Toronto, Ontario–(Newsfile Corp. – December 15, 2020) – Pharmadrug Inc. (CSE: BUZZ) (OTC Pink: LMLLF) (“PharmaDrug” or the “Company“) is pleased to provide an update to the status of its balance sheet following the recent general equity market upswing and the increase in PharmaDrug’s volume and share price appreciation.
Recent market activity has served to significantly strengthen PharmaDrug’s balance sheet and improve its ability to execute on its current business plan. The market has contributed to increased balance sheet strength is four distinct ways. Firstly, PharmaDrug was able to raise in excess of $850,000 by selling marketable securities that the Company valued on its Q3 financials at $200,000, due to a subsequent increase in the value of the shares. Secondly, the Company holds 4.24 million shares of Red Light Holland Corp. (CSE: TRIP) (FSE: 4YX) (OTC:TRUFF), of which it has not yet sold any shares. The Company also holds 4.24 million warrants of Red Light Holland exercisable at a price of $0.26 per share. Thirdly, the Company is now receiving conversion notices of its outstanding debentures which have a conversion feature at $0.05 per share. As a result, the Company has already seen a material decrease in its outstanding debt since Q3 financials. We will update the market on the debenture principal outstanding prior to year-end. Lastly, the company has a sizeable amount of $0.05 warrants in the market and management has already received a number of exercise notices. In summary, management expects to see a large increase in its cash balance by year-end with a greatly reduced outstanding debt balance.
Management plans to use increased cash position to execute on a more aggressive growth plan in Germany and the Netherlands. The Company is in the final stages of adding additional Medical Cannabis lines and has already started negotiations to add to its product offering to pharmacies narcotics lines outside of the Cannabis space. Management will look to add more salespeople in country and to accelerate activities to add more product lines to build out a larger and more diversified pharmaceutical distribution company, which we expect to include pharmaceutical psychedelic products as they become legally available in Germany.
In the Netherlands, the Company is continuing to advance on building out and launching its online psychedelics retail platform. We have also shortlisted locations for a flagship store in Amsterdam. Management will use increased liquidity to accelerate growth plans in 5 follow on cities in the country and has will contemplate strategic moves to vertically integrate and broaden out its psychedelics business model in The Netherlands before expanding into other countries.
About PharmaDrug Inc.
PharmaDrug Inc. is building an international controlled substance and natural medicine company with a focus on Europe. The Company owns 80% of Pharmadrug GmbH, a German medical cannabis distributor, with a Schedule I European Union narcotics license allowing for the importation and distribution of medical cannabis to pharmacies in Germany and throughout the EU. The Company also owns 100% of Super Smart, an early-stage retail company focused on consolidating the fragmented Dutch smartshop market. Smartshops are retail establishments in The Netherlands that specialize in the sale of psychoactive substances including psychedelic truffles.
For further information, please contact:
Daniel Cohen, Chairman and CEO
Caution Regarding Forward-Looking Information:
THE CANADIAN SECURITIES EXCHANGE HAS NOT REVIEWED NOR DOES IT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
This news release may contain forward-looking statements and information based on current expectations. These statements should not be read as guarantees of future performance or results of the Company. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements. Although such statements are based on management’s reasonable assumptions, there can be no assurance that such assumptions will prove to be correct. We assume no responsibility to update or revise them to reflect new events or circumstances. The Company’s securities have not been registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”), or applicable state securities laws, and may not be offered or sold to, or for the account or benefit of, persons in the United States or “U.S. Persons”, as such term is defined in Regulations under the U.S. Securities Act, absent registration or an applicable exemption from such registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in the United States or any jurisdiction in which such offer, solicitation or sale would be unlawful. Additionally, there are known and unknown risk factors which could cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained herein, such as, but not limited to dependence on obtaining regulatory approvals; the ability to locate additional supply of medical cannabis, owning interests in companies or projects that are engaged in activities currently considered illegal under United States federal law; changes in laws; limited operating history, reliance on management, requirements for additional financing, competition, hindering market growth; regulatory and political change. All forward-looking information herein is qualified in its entirety by this cautionary statement, and the Company disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law.