- PharmaCielo expects to start exporting dried flowers in the first half of 2022, with volumes increasing throughout the rest of the year.
- The company’s upstream and downstream scale and quality uniquely positions it as a strong competitor, with the psychoactive flower currently being imported into the EU and other markets from Canada and other producing countries.
- The new regulations also create greater legal clarity, provide quotas for a new category of low-THC extracts, and provide producers with new business opportunities.
Toronto, Canada and RIONEGRO, Colombia, February 20, 2022 /CNW/ – PharmaCielo Ltd. (“PharmaCielo” or the “Company”) (TSXV: PCLO) (OTCQX: PCLOF), the Canadian parent company of Colombia leading cultivator and producer of medicinal grade cannabis and dried flower extracts, PharmaCielo Colombia Holdings SAS (“Holdings”), today welcomed the Colombian government‘s adoption of Regulation 227 (the “Regulation”), which aims to make the country’s cannabis industry more globally competitive. In July 2021, the Colombian government has issued Decree 811. Today’s government announcement introduces a set of practical regulations implementing the legal provisions of Decree 811 that, among other important advances, will enable PharmaCielo and other producers of start exporting dried flowers and access additional opportunities for CBD products. In the coming weeks, the Colombian government is expected to publish new commercial technical guidelines.
With the GACP1 designation already in place and the possibility of reallocating part of its existing 50 ton quota to dried flowers, PharmaCielo expects to be well positioned to begin exporting dried flowers in the first half of 2022, with volumes growing during the rest of the year.
Bill PetronCEO of PharmaCielo, said, “The passage of Regulation 227 is a historic development for the Colombian cannabis industry, opening up the vast and growing global market for dried flowers as well as multiple CBD-based opportunities to Colombian growers. The Colombian government has consistently demonstrated its commitment to making this industry a world leader and, in our view, today’s announcement Colombia the most export-friendly and competitive jurisdiction in the world. Dried flowers represent up to 50% market share in most mature cannabis markets around the world and represent a huge opportunity for both the Colombian industry and for PharmaCielo. With scalable cultivation and processing capacity in place, a structural cost advantage, and the sophistication to ensure consistently high quality products, PharmaCielo is positioned to capture market share from current international exports from markets such as than Canada.”
Mr Petron continued: “The Government’s revised approach to the quota system will ensure both speed to market and greater efficiency throughout the sales process. We anticipate 2022 to be a very exciting year of growth for PharmaCielo, as we launch and expand dried flower exports, enabling patients around the world to access affordable, high-quality medical cannabis products. »
PharmaCielo Ltd. (TSXV: PCLO, OTCQX: PCLOF) is a global company, headquartered in Canada, with an emphasis on the ethical and sustainable processing and supply of all natural, pharmaceutical grade medical cannabis products to major distributors. The principal (and wholly owned) subsidiary of PharmaCielo is PharmaCielo Colombia Holdings SAS, headquartered in its Cultivation and Processing Center located in Rionegro, Colombia.
PharmaCielo’s Board of Directors and management team are comprised of a diverse group of international business executives and specialists with relevant and varied expertise. PharmaCielo recognized the important role that Colombia the ideal location plays into building a sustainable business in the medical cannabis industry, and the company, together with its directors and officers, is executing a business plan focused on supplying the international market.
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This press release contains forward-looking statements. Forward-looking statements can be identified by the use of words such as “expects”, “is expected”, “intends”, “anticipates”, “believes”, or variations of these words and expressions. or state that certain actions, events, or results “may” or “will” be taken, will occur, or will be completed or achieved. Forward-looking statements in this press release include, but are not limited to, statements regarding the issuance of Units, including the terms thereof and the closing date thereof.
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Forward-looking statements may be affected by known and unknown risks, uncertainties and other factors, including changes in PharmaCielo’s development plans, the inability to obtain and maintain all necessary regulatory approvals relating to the export of cannabinoid products and import of such products into other countries, TSX Venture Exchange approval, inability to export or distribute commercial products through sales channels as intended in Due to economic or operational circumstances, the risks associated with operating in Colombiafluctuations in the market price of the Company’s products, risks associated with global economic instability related to COVID-19 or other developments, risks associated with the retention of key Company personnel, currency risk , competition in PharmaCielo’s market and other risks discussed or referred to under “Risk Factors” in PharmaCielo’s Annual Information Form for the year ended December 31, 2019available on www.sedar.com. Accordingly, readers should not place undue reliance on forward-looking statements. Except as required by law, PharmaCielo undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
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1 Good Agricultural and Collection Practices
SOURCE PharmaCielo Ltd.