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by Stockwatch Business Reporter

The S&P/TSX Cannabis Index lost 5.81 points to 131.4 Thursday, while the Canadian Securities Exchange Composite Index inched up 0.14 point to 320.37. David Attard's cannabis extractor, Pharmacielo Ltd. (PCLO), rose 12 cents to $1.08 on 826,800 shares after releasing its fourth quarter and full-year 2019 results. The stock also rose 19 cents yesterday, perhaps in anticipation of the results.

The good news was that Pharmacielo's revenue increased considerably to $657,000 in Q4 from $130,000 in Q3. That increase was negated, though, by a disproportionately high increase in costs of goods sold. The company's costs of goods sold in Q4 were $672,000, exceeding its revenue.

The trend of higher costs continued into Pharmacielo's selling, general and administrative (SG&A) expenses. The company spent an eye-popping $10.5-million on SG&A in Q4, up from $6.1-million in Q3. (For context, one of its top competitors, Medipharm Labs Corp. (LABS: $1.95), had SG&A expenses of $7.2-million on revenue of $32.4-million in Q4. From a purely mathematical perspective, the comparison is far from flattering -- Pharmacielo managed to incur more SG&A expenses than Medipharm despite having 98 per cent less revenue than Medipharm.)

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