- Company signs a three-year performance-based agreement with CBD
Export Global
- Distribution channel covers the entire EU-zone as well as
Switzerland and Lichtenstein
- Shipments to commence in 2020 with increasing volumes during
duration of Agreement
TORONTO and RIONEGRO,
Colombia, Jan. 24, 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., announces it has signed a three-year pan-European
distribution agreement (the "Agreement"), in which the Company's
high-grade CBD isolate and broad-spectrum CBD oil will be sold to
wholesalers and medicinal CPG product manufacturers through GMP
certified lab owner, CBD Export Global.
The Agreement with the Quebec,
Canada-based CBD Export Global expands PharmaCielo's
distribution network in Europe
with shipments into the EU to commence in 2020 with increased
volumes during the duration of the agreement as B2B markets are
expanded. A minimum target volume of 2,000 kg has been agreed
to in the first year of the three-year performance-based Agreement,
allowing for confirmation of individual market regulatory approvals
and enabling increased sales volume expansion in subsequent
years.
"The agreement with CBD Export Global is part of PharmaCielo's
second-phase growth strategy complementing the first phase in which
we established one of the largest cultivation and extraction
operations in Colombia and
initiated global sales, and now in the second phase expanding the
distribution network as production volumes increase on a daily
basis to take our high-quality medicinal CBD extracts to global
markets," says David Attard,
Chief Executive Officer of PharmaCielo. "In 2019 we saw global
demand for quality medicinal extracts increasing on an ongoing
basis. In 2020 we are further expanding our distribution and sales
channels. The collaboration with CBD Export Global will play a key
role in our continued growth."
The distribution agreement with CBD Export Global is entered
into with the intent of continued market expansion beyond 2019's
experience successfully completing commercial shipments of CBD
isolate from PharmaCielo to the U.S. and Switzerland.
"As a fellow Canadian company helping to build a global
industry, we are delighted to build a relationship with PharmaCielo
as we access the global industry for the very best of both product
supply and, with recognition of their position as the first and
only global GAP certified cannabis supply chain from Colombia to Europe, the ability to meet the needs of a
demanding global medicinal marketplace," says Alex Grenier, Chief Executive Officer of CBD
Export Global.
CBD Export Global is focused on establishing the market standard
in originating, handling, processing and marketing a wide range of
cannabis derivatives to downstream manufacturers of products –
including the processing industry (medical, cosmetic, animal and
consumer products), local importers and government purchasing
bodies. With its strategic network of assets and infrastructure,
including its cGMP certified laboratory and strong relationships
along the supply chain, CBD Export Global meets the needs of
customers around the world.
Distribution by PharmaCielo into European countries under the
Agreement is subject to the approval of the TSX Venture
Exchange.
About CBD Export Global
CBD Export Global is a
Quebec, Canada-based company
establishing the market standard in originating, handling,
processing and marketing a wide range of cannabis-derived products,
with a dedicated focus on supply-chain management for provisioning
leading brands and product manufacturers. As the owner of
C-Crest Laboratories, a cGMP certified laboratory licensed by
Health Canada, certified testing services are provided to cannabis
producers and processors.
CBD Export Global sources a diverse range of legal and certified
cannabis derivatives – buying directly from producers and farming
co-operatives wherever legally possible through government programs
worldwide; handling and processing cannabis with a focus on
sustainability, safety and reliability and marketing cannabis
derivatives to downstream manufacturers of products around the
world, local importer, and government purchasing bodies.
With its strategic network of assets and infrastructure, and
strong relationships along the supply chain, CBD Export Global
meets the needs of customers around the world.
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
Certain statements contained in this news release, such as
those relating to anticipated commercial sales of CBD isolate in EU
countries in 2020, an increase in volumes of product sold under the
Agreement and approval by the TSXV of the export of PharmaCielo
products to European Union countries under the Agreement are
"forward-looking information" as such term is used in applicable
Canadian securities laws. Forward-looking information is
based on plans, expectations and estimates of management of the
Company at the date the information is provided and is
subject to certain factors and assumptions, including the continued
ability of the Company to obtain all necessary governmental
regulatory and TSXV approval related to the commercialization and
exportation of PharmaCielo's medicinal CBD products from
Colombia to European Union
countries, that the market for CBD will allow PharmaCielo to sell
its products under the Agreement or other under commercial
agreements at prices that are profitable, that European Union
regulations relating to 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 European Union countries differs between countries and is
constantly evolving and as a result is subject to uncertainty, that
the market for CBD products in the European Union is volatile and
could diminish the profitability of the Company's products, failure
to obtain necessary TSXV or applicable government regulatory
approvals related to the exportation from Colombia or importation of the Company's
products into the European Union, that the Company may be unable to
export or distribute its products 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.