- Additional area under active cultivation expands PharmaCielo's
immediate footprint by 32 percent to 1.6 million square feet with
further expansion pending grower license approval
- Company activates first external cultivation contract with
local grower
- Increased volumes contribute to expanded 360 tonne biomass
processing capacity of the Company's new Processing and Extraction
Centre
TORONTO and RIONEGRO,
Colombia, Aug. 13, 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 today that it has activated its first external
cultivation contract with a local grower. The contract, part of
PharmaCielo's long-term external cultivation business growth
strategy, provides the Company with a highly cost-efficient and
flexible cultivation operation model which allows it to rapidly
scale up production.
The enactment of the first medical cannabis farming contract
will see PharmaCielo's cultivation immediately expanding by 32
percent to more than 1.6 million square feet (15 ha) with continued
enlargement growing cultivated land to a total of 2.6 million
square feet (24 ha), pending receipt by the contracted grower of
their technical licensing for the additional area. This
represents a doubling of PharmaCielo's currently active 1.2 million
square feet (12 h) cultivation, making it Colombia's largest combined medical cannabis
grower and processor.
"As our 30,000+ square foot advanced Processing and Extraction
Centre facility nears the technical completion necessary for GMP
certification, we have been steadily increasing utilization and
expanding processing capacity with the appropriate technology,
processes and volume expertise." said CEO David Attard. "With a biomass processing
input capacity of 360,000 kg per year, it is the perfect timing for
us to begin activating external cultivation contracts to ensure we
have an established inventory of dried flower necessary to expand
the output of finished extracts and meet increasing global market
demand."
This immediate expansion of cultivation capacity will be
dedicated to the cultivation and harvest of a
non-psychoactive CBD dominant PharmaCielo proprietary strain.
Contract growers are provided with PharmaCielo's proprietary strain
cuttings for cultivation and harvest on a 12-week cycle, allowing
multiple annual harvests. PharmaCielo's agreements with contract
cultivators will allow it the flexibility to continue to expand
based on need.
The initial external grower contract was granted to Tahami &
Cultiflores S.A., an established horticultural grower led by
PharmaCielo co-founder, former executive and director Federico Cock-Correa. The agreement sets a
series of obligations for the grower based on supply to PharmaCielo
of specified quantities of plant material that come from the
process of planting, cultivating, harvesting, pre-drying and
de-stemming cuttings. The agreement also allows inspections
of the grower verifying compliance with contractual protocols,
cultivation and quality standards and conformity with government
regulatory requirements and certifications.
"Our decision to grant the initial external cultivation to
Tahami was a deliberate strategy to guarantee quality given the
unparalleled experience held by Federico with commercial volume
cannabis cultivation and the growing requirements of the
PharmaCielo certified strains," added Attard. "Future
contracts with additional growers will seek to replicate the same
knowledge and experience."
The outsourcing contract supplements PharmaCielo's in-house
cultivation operation in its Rionegro complex that will increase
focus on growing psycho-active strains, while greater cultivation
of non-psychoactive strains will be carried out by the external
designated grower. All quality controls and supervision
requirements of the off-campus cultivation will be done in
accordance PharmaCielo's Good Agriculture Practices (GAP) and
ISO9001:2015 standards.
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 cultivation and processing centre located in Rionegro,
Colombia.
The board of directors and executive team of PharmaCielo 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 plays 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 the
expansion of PharmaCielo's footprint, the receipt of grower license
approval, the Company activating other cultivation contacts with
local growers, the expansion of production capacity, scaling up of
production, receipt of GMP certification, increase of production
capacity, establishing an inventory of dried flower, expansion of
cultivation capacity, growth of non-psychoactive strains and
quality controls and supervision by the Company in accordance with
the Company's Good Agriculture Practices (GAP) and ISO9001:2015
standards. Forward-looking statements are based on assumptions,
including with respect to the ability to obtain all necessary
governmental regulatory approvals including grower license
approval, the Company's ability to execute on expansion of its
footprint, increase production capacity and that there will be no
unexpected logistical delays associated with this growth, the
Company's ability to meet the requirements of GMP certification and
the Company's ability ensure external contract growers operate in
accordance with the Company's Good Agriculture Practices (GAP) and
ISO9001:2015 standards. Forward-looking statements can be affected
by known and unknown risks, uncertainties and other factors,
including, but not limited to, risk that necessary governmental
regulatory approvals may not be obtained or may not be obtained in
time to execute the Company's business objectives, logistical
issues that may prevent the Company's anticipated growth including
those related to COVID 19, the Company's ability to obtain the
necessary permits and licenses it requires in order to export its
products from Colombia and into
other countries, that the Company does not control its third party
contract growers, risks associated with the regulation of cannabis
and cannabinoid derivatives, risks associated with operating in
Colombia, and currency exchange
risk. 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.