The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of those who acquired PharmaCielo Ltd. (“PharmaCielo” or the “Company”) (OTC: PCLOF) securities during the period from June 21, 2019 through March 2, 2020. Investors have until May 5, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that the Company failed to disclose that: (i) PharmaCielo engaged in an undisclosed related party transactions with General Extract; (ii) PharmaCielo engaged in misleading transactions and loans with General Extract and XPhyto; (iii) PharmaCielo’s Research Technology and Processing Centre was never on-schedule and is delayed; (iv) the Rionegro facility is located on a floodplain and contaminated with mold and pesticides from its previous tenants; and (v) PharmaCielo’s Cauca Department land has never been utilized by the Company and is idle.
On March 2, 2020, Hindenburg Research published a report alleging that PharmaCielo failed to disclose: (i) transactions with related parties; (ii) misleading business transactions and loans with General Extract and XPhyto; (iii) the delayed state of its Research Technology and Processing Centre’s construction; and (iv) the poor state of its Rionegro Growing Facility.
On this news, PharmaCielo’s shares fell $0.5132 over the next two trading days, or 36.14%, to close at $0.9068 per share on March 3, 2020.
If you acquired PharmaCielo securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at firstname.lastname@example.org, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.