- Investment of CDN$4 million
expands Colombian processing capabilities twelvefold through
addition of high-volume extraction equipment and proprietary
techniques
- Annual extraction capacity increased to 265 tonnes, as Company
has begun processing inventory of 18 tonnes of dried flower
currently in storage
- Increased production of oil extracts will support international
supply channels and product manufacturing following Creso Pharma
acquisition closure
- PharmaCielo was recently granted approval for commercial export
of non-psychoactive (CBD) isolate from the Colombian
Government
TORONTO and RIONEGRO,
Colombia, Aug. 1, 2019 /CNW/ - PharmaCielo
Ltd. ("PharmaCielo" or the "Company")
(TSXV:PCLO, OTC:PHCEF), the Canadian parent of Colombia's premier cultivator and producer of
medicinal-grade cannabis oil, PharmaCielo Colombia Holdings S.A.S.,
is ramping up its oil processing capabilities in the Company's
Rionegro, Colombia facility
following the recent acquisition and installation of additional
high-performance, high-volume extractors, combined with proprietary
extraction techniques.
After receiving approval for commercial export of
non-psychoactive (CBD) isolate PharmaCielo has expanded its
extraction processing capacity to 265 tonnes of dried flower to
meet anticipated global demand for its high-grade medicinal
cannabis oils, feeding international supply channels and product
production lines following the recent achievement of Colombian
government approval for commercial export of non-psychoactive (CBD)
isolate combined with announcement of the Company's intent to
acquire Creso Pharma Limited (ASX:CPH) ("Creso Pharma").
"As global demand for medicinal cannabis oils and extracts
continues to outpace supply, we are taking the right steps with
prudent investment in processing infrastructure to ensure that we
capitalize on business opportunities to become the leading supplier
globally," said David Attard, CEO at
PharmaCielo. "With the recently announced agreement to acquire
Creso Pharma, we have the opportunity to expand our global
footprint and add an extensive portfolio of animal and human CBD
products, which when combined with commercial export approval and
inbound order demand puts us at the stage where we need to ramp up
production."
Along with the expansion of its extraction capabilities,
PharmaCielo also announced it has surpassed the 18-tonne mark of
dried flower currently under inventory and immediately ready for
processing. The Company also continues to expand the land area
under active cultivation, currently at 12.1 hectares (capable in
annual cultivation in excess of 0.48 million kg) from 5.3 hectares
at the beginning of the year, with additional cultivation expansion
expected to continue throughout the balance of the year.
"Since receiving Colombia's
first-issued manufacturing and cultivation licenses, we have
utilized the opportunity to conduct trials with the full range of
processing equipment and to determine which methodology best meets
individual strain and finished-product requirements, as well as to
develop proprietary methodologies," added Attard. "Deep
experience with all the processing technologies leaves us well
positioned to immediately capitalize on installation of the new
equipment and not lose valuable production time learning relative
ins-and-outs."
The additional processing equipment now in place complements
technologies previously manufactured and installed by Canadian firm
Vitalis, the global leader in industrial-scale supercritical CO₂
extraction, and will immediately increase annual dried flower
processing capacity in support of previously announced strategies
for the expansion of hectares under cultivation, with a
corresponding increase in finished oil production. Laboratory
analysis conducted has demonstrated purity of CBD isolate
extraction certified as greater than 99+%, and readily
accommodating multiple international requirements for commercial
import.
About PharmaCielo
PharmaCielo Ltd. (TSXV:PCLO, OTC:PHCEF) is a global company,
headquartered in Canada, with a
focus on ethically and sustainably processing and supplying all
natural, medicinal-grade cannabis oil extracts and related products
to large channel distributors. PharmaCielo's principal (and wholly
owned) subsidiary is PharmaCielo Colombia Holdings S.A.S.,
headquartered at its nursery and propagation centre located in
Rionegro, Colombia.
The boards of directors and executive teams of both PharmaCielo
and PharmaCielo Colombia Holdings are comprised of a diversely
talented group of international business executives and specialists
with relevant and varied expertise. PharmaCielo recognized the
significant role that Colombia's
ideal location will play in building a sustainable business in the
medical cannabis industry, and the Company, together with its
directors and executives, is executing on a business plan focused
on supplying the international marketplace.
Neither the TSXV nor its Regulation Services Provider (as
that term is defined in the policies of the TSXV) accepts
responsibility for the adequacy or accuracy of this press
release.
Forward-Looking Statements
This press release contains forward-looking statements.
Forward-looking statements can be identified by the use of words
such as, "expects", "is expected", "intends", "believes", or
variations of such words and phrases or state that certain actions,
events or results "may" or "will" be taken, occur or be achieved.
Forward-looking statements include statements with respect to an
increase in the global medicinal demand for CBD cannabis, the
ability of PharmaCielo to fulfill global demand for pure CBD
medicinal cannabis oil extracts, the anticipated acquisition of
Creso Pharma, and expected continued cultivation expansion.
Forward-looking statements are based on assumptions, including with
respect to anticipated global demand for CBD cannabis, that the
acquisition of Creso Pharma will be completed, that cultivation
expansion will continue at the anticipated rate, and the ability of
PharmaCielo to execute its business plan that management believes
are reasonable in the circumstances, but the actual results,
performance or achievements of PharmaCielo's business may be
materially different from any future results, performance or
achievements expressed or implied by any forward-looking
statements. Forward-looking statements can be affected by known and
unknown risks, uncertainties and other factors, including, but not
limited to, uncertainty of the cannabis market generally, risks
generally associated with acquisitions including the parties
ability to meet all conditions precedent to an acquisition and
receipt of all necessary regulatory approvals, the equity markets
generally, risks associated with early stage companies, risks
associated with the regulation of cannabis and cannabinoid
derivatives, failure to obtain necessary TSXV approval, competition
for PharmaCielo's planned products, and risks associated with
operating in Colombia.
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.
SOURCE PharmaCielo Ltd.