Mr. Marc Lustig reports

PHARMACIELO ANNOUNCES 2026 FIRST QUARTER RESULTS

Pharmacielo Ltd. has released 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 $300,000 in the corresponding quarter of 2025, driven primarily by broader geographic footprint and new flower sales to Europe;
• Gross profit: $500,000, versus a $100,000 gross loss in Q1 2025;
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) loss: $700,000, versus $400,000, 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.

Management commentary

Marc Lustig, chairman and chief executive officer: "Revenue more than quadrupled to $1.4-million and gross profit improved to $500,000, 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 (capital expenditure) 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 (management's discussion and analysis) are available on SEDAR+ and at the Pharmacielo website.

Issuance of debenture interest shares

Following TSX Venture Exchange approval, on Aug. 24, 2026, Pharmacielo issued 9,721,443 common shares of the company, at an effective price of eight cents per interest share, in satisfaction of an aggregate of $777,717.33 of semi-annual interest payable to holders of the company's 11-per-cent secured 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 TSX-V 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., Mr. 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. 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 per cent of the company's market capitalization.

About Pharmacielo Ltd.

Pharmacielo is a Canadian-headquartered producer of dried flower and food- and medicinal-grade cannabis extracts, through its wholly owned subsidiary Pharmacielo Colombia Holdings SAS in Rionegro, Colombia.

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