PharmaCielo Ltd.’s $29.7 Million Reverse Merger with AAJ Capital 1 Corp.


McMillan, DLA Piper Martínez Beltrán, Fasken Martineau DuMoulin and Philippi Prietocarrizosa Ferrero DU & Uría advised on the deal

PharmaCielo Ltd., formerly AAJ Capital 1 Corp. completed its previously announced qualifying transaction pursuant to the policies of the TSX Venture Exchange.

In connection with the Qualifying Transaction, Jaque Capital Management Ltd., a private company controlled by Anthony Wile, the former Chief Executive Officer and a Director of PharmaCielo Private Co acquired 13,002,500 Resulting Issuer Shares in exchange for the same number of PharmaCielo Common Shares pursuant to the terms of the Arrangement, representing 11.86% of the issued and outstanding Resulting Issuer Shares on a fully diluted basis, thereby requiring disclosure pursuant to the early warning requirements of applicable securities laws. The Resulting Issuer Shares controlled indirectly by Mr. Wile are subject to certain escrow restrictions as set out in the Filing Statement.

Mr. Wile indirectly acquired the Resulting Issuer Shares in connection with the Qualifying Transaction for investment purposes. He does not have any current intentions to increase or decrease beneficial ownership or control or direction over any additional securities of the Company. Subject to applicable escrow restrictions described in the Filing Statement, Mr. Wile may, from time to time and depending on market and other conditions, acquire additional Resulting Issuer Shares through market transactions, private agreements, treasury issuances, dividend reinvestment programs, exercise of options, convertible securities or otherwise, may sell all or some portion of the Resulting Issuer Shares he owns or otherwise trade in or with respect to securities of the Company.

PharmaCielo Ltd. is headquartered in Canada, with a focus on processing and supplying all natural, medicinal-grade cannabis oil extracts and related products to large channel distributors. PharmaCielo’s principal (and wholly owned) subsidiary is PharmaCielo Holdings, headquartered at its nursery and propagation centre located in Rionegro, Colombia.

In Canada, McMillan advised PharmaCielo Ltd. with Georges Dubé, Herb I. Ono, Peter Giddens, Brett G. Harrison, Jeffrey P. Gebert, Alex Bruvels, Valenteena Samra, Habib Mavani, Andrew Stirling and Lauren Ray.

In Colombia, DLA Piper Martínez Beltrán advised PharmaCielo Ltd. wtih Néstor Camilo Martínez Beltrán, Sebastián Celis and Luisa Echeverri.

Fasken Martineau DuMoulin advised Echelon Wealth Partners Inc., Cormark Securities Inc and GMP Securities L.P. – acting as led manager on the private offering – with Paul Fornazzari, Myroslav Chwaluk and Matthew Downer.

In Colombia, Philippi Prietocarrizosa Ferrero DU & Uría advised Echelon Wealth Partners Inc., Cormark Securities Inc and GMP Securities L.P. with Hernando Padilla and Ana Estrada.

Involved fees earner: Sebastian Celis Rodriguez – DLA Piper Martínez Beltrán; Luisa María Echeverri – DLA Piper Martínez Beltrán; Camilo Martinez Beltran – DLA Piper Martínez Beltrán; Myroslav Chwaluk – Fasken Martineau; Matthew Downer – Fasken Martineau; Paul Fornazzari – Fasken Martineau; Alex Bruvels – McMillan; Georges Dubé – McMillan; Jeffrey Gebert – McMillan; Peter Giddens – McMillan; Brett Harrison – McMillan; Habib Mavani – McMillan; Herbert Ono – McMillan; Lauren Ray – McMillan; Valenteena Samra – McMillan; Andrew Stirling – McMillan; Ana Estrada – Philippi Prietocarrizosa Ferrero DU & Uría; Hernando Padilla – Philippi Prietocarrizosa Ferrero DU & Uría;

Law Firms: DLA Piper Martínez Beltrán; Fasken Martineau; McMillan; Philippi Prietocarrizosa Ferrero DU & Uría;

Clients: Cormark Securities Inc.; Echelon Wealth Partners Inc.; GMP Securities L.P.; PharmaCielo Ltd;

Author: Ambrogio Visconti