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 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.
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.
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.