SAN DIEGO & TORONTO--(BUSINESS WIRE)--Shareholder rights law firm Robbins LLP announces that it is investigating PharmaCielo Ltd. (OTC: PCLOF) for alleged violations of the Securities Exchange Act of 1934 and whether the Company's officers and directors breached their fiduciary duties to shareholders. PharmaCielo, through its subsidiary, PharmaCielo Colombia Holdings S.A.S., cultivates, processes, produces, and supplies medical-grade cannabis oil extracts and related products in Colombia and internationally.
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PharmaCielo Ltd. (PCLOF) Fails to Disclose Related-Party Transaction
In September 2019, PharamCielo issued a press release announcing that it "ha[d] signed a United States sales agreement with an established multi-state distributor, General Extract LLC." Then, on March 2, 2020, Hindenburg Research reported that General Extract LLC was a related party entity with no credible operations run by PharmaCielo's former COO. The report further asserted that PharmaCielo had engaged in misleading business transactions with General Extract and Xphyto Therapeutics, and questioned the delayed development of its processing center and general misinformation regarding its production facilities. Since this news, shares of PharmaCielo have declined almost 50% per share, currently trading at around $0.50 per share.
PharmaCielo Ltd. (PCLOF) Shareholders Have Legal Options
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