TORONTO, Jan. 17, 2020 /CNW/ - PharmaCielo
Ltd. ("PharmaCielo" or the "Company")
(TSXV: PCLO, OTCQX: PCLOF), the Canadian parent of
Colombia's premier cultivator and
producer of medicinal-grade cannabis extracts, PharmaCielo Colombia
Holdings S.A.S., announced that further to its September 25, 2019 press release relating to a
supply agreement (the "Supply Agreement") it has received TSX
Venture Exchange ( "TSXV") approval of the export from Colombia of medicinal grade CBD isolate that
is compliant with the 2018 Farm Bill to a distributor in
the United States who had placed
an order for up to US$3 million under
the Supply Agreement.
"We believe we are the first TSXV listed company to receive
approval to export CBD isolate from Colombia to the US market and we plan to
leverage this first mover advantage to continue expanding our
relationships in the US, introducing additional products allowed
under the 2018 Farm Bill and driving results for shareholders,"
said PharmaCielo CEO David
Attard. "Due to the approval timeline, we were unable
to meet the US market delivery and revenue schedule originally
announced for 2019. That said, we expect to have commercial
deliveries into the US market reflected in the current quarter and
are actively looking to expand in that market, positioning the
Company well for 2020."
Mr. Attard continued, "With the continued expansion of the
US market and the individual states participating in the medicinal
sector, PharmaCielo's industry-leading production cost structure,
superior quality of our extracts and the scale at our disposal,
position the Company to capture market share and drive results in
2020 and beyond."
The TSXV has approved the exportation of up to $3,000,000 of medicinal grade hemp derived CBD
isolate under the Supply Agreement. Additional exportation of
PharmaCielo products into the United
States outside of the Supply Agreement is subject to the
approval of the TSXV.
In 2019, the Company successfully completed a series of
introductory commercial shipments to the distributor in
verification of shipping routes and international trade and customs
requirements. During the course of these shipments the
imported goods were subject to US regulatory review, including that
of the US Food & Drug Administration, which subjected a
shipment sample to appropriate testing and validation prior to
release.
About PharmaCielo
PharmaCielo Ltd. (TSXV: PCLO,
OTCQX: PCLOF) is a global company, headquartered in Canada, with a focus on ethical and
sustainable processing and supplying of 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.
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.Certain statements contained in this
news release, such as those relating to fulfilling target revenues
of up to US$3 million under the
Supply Agreement and expanding market delivery for CBD products in
the US and with other partners and the perceived benefits from the
commercial arrangement, are "forward-looking statements" as such
term is used in applicable Canadian securities laws.
Forward-looking statements are based on plans, expectations and
estimates of management at the date the information is provided and
is subject to certain factors and assumptions, including the
continued ability to obtain all necessary governmental regulatory
and TSXV approval related to the commercialization and exportation
of PharmaCielo's CBD products from Colombia to the US, that the market for CBD
isolate will allow PharmaCielo to sell its products under the
Supply Agreement or other under commercial agreements at prices
that are profitable, that US regulations relating to medicinal
grade derived CBD isolate will not alter so as to negatively impact
the Company's business, that the Company's financial condition and
development plans do not change as a result of unforeseen events,
and management's ability to execute its overall business plan.
Forward-looking information is subject to a variety of risks and
uncertainties and other factors that could cause plans, estimates
and actual results to vary materially from those projected in such
forward-looking information. Factors that could cause the
forward-looking information in this news release to change or to be
inaccurate include, but are not limited to, the risk that any of
the assumptions referred to prove not to be valid or reliable, the
regulatory regime relating to the importation of cannabis products
into the United States is
constantly evolving and as a result is subject to uncertainty, that
the market for CBD products in the United
States is volatile and could diminish the profitability of
the Company's products in this jurisdiction, failure to obtain
necessary TSXV or applicable government regulatory approvals
related to the exportation from Colombia or importation of the Company's
products to the United States, the
Company may be unable to export or distribute commercial product to
its sale channels due to economic or operational circumstances,
risks associated with operating in Colombia, as well as the other risks and
uncertainties applicable to cannabis producing companies. The
Company undertakes no obligation to update these forward-looking
statements, other than as required by applicable law.
SOURCE PharmaCielo Ltd.