- Joint venture secures PharmaCielo's foothold in world's
largest legalized medicinal cannabis marketplace with population of
130-million and over 33,0001medicinal
distribution points
- Marks key step in PharmaCielo's plan to become a leading
global exporter of medicinal-grade cannabis oils and derivative
products and in bringing economic value to individual global
markets
TORONTO and MEXICO CITY, MEXICO, Jan. 28, 2019 /CNW/ - PharmaCielo
Ltd. ("PharmaCielo" or the "Company")
(TSXV:PCLO), the Canadian parent of Colombia's premier cultivator and producer of
medicinal-grade cannabis oil, PharmaCielo Colombia Holdings S.A.S.,
announced today its entry into the Mexican market through an equity
joint venture (the "JV") with MINO Labs S.A. de C.V. ("MINO Labs"),
a specialty pharmaceutical company and medical supply distributor
based in Mexico, based on an
agreement signed on January 25, 2019.
The JV is called PharmaCielo S.A. de C.V. ("PharmaCielo
Mexico").
The announcement marks a key milestone in PharmaCielo's plan to
become a leading global exporter of high-quality medicinal-grade
cannabis oils and derivative products. Cannabis oil delivery under
the JV to the Mexican market is expected to commence in Q4 2019,
subject to the JV and PharmaCielo obtaining the requisite
registrations and licences. PharmaCielo's ability to carry out the
contemplated business under the JV will be subject to the approval
of the TSX Venture Exchange (the "TSXV").
"We are thrilled about the opportunity to join forces with MINO.
Ultimately, our plan is to bring our high-quality cannabis oils to
Mexico," says David Attard, Chief Executive Officer of
PharmaCielo. "Our premium quality oils are extracted from
proprietary strains of dried flower at flower cost levels below
$0.05 per gram. This enables us to
focus our efforts and financial investment on the creation of the
highest-quality oil-based health and wellness products, which when
combined with the expertise of Mino
Labs, will enable the JV to participate in the advancement
of the medicinal cannabis industry in Mexico."
PharmaCielo Mexico is owned equally by PharmaCielo and MINO
Labs. The board of directors (the "JV Board") of PharmaCielo Mexico
is to be comprised of three directors nominated by PharmaCielo and
three directors nominated by MINO Labs. PharmaCielo and MINO Labs
are required to develop in good faith a business plan within 90
days and submit it to the JV Board for approval. The business of
the JV is intended to include the sales, distribution, marketing,
research, and product development of medicinal cannabis products in
Mexico. The JV must prepare and
submit all necessary regulatory applications and registrations
required to conduct the contemplated business of the JV in
Mexico. Within 90 days, the JV and
PharmaCielo are to negotiate and enter into a long term supply
agreement pursuant to which the JV would exclusively purchase from
PharmaCielo cannabis oils and other cannabis products to be used
for developing, manufacturing, marketing, and selling. Also within
90 days, the JV and PharmaCielo are to enter into a co-branding
license agreement that would govern the use of PharmaCielo
trademarks used by the JV. PharmaCielo and Mino Labs have also entered into a
non-competition agreement not to compete with the JV in
Mexico.
MINO Labs has more than 20 years of experience in the
pharmaceutical and medical distribution sector with dedicated and
experienced sales staff. With access to distribution, warehousing
and commercialization facilities throughout the Mexican territory,
MINO supplies large retail chains, independent and retail
drugstores alike, as well as government-owned outlets with
pharmaceutical, biological and additional revenue-generating
over-the-counter (OTC) products. MINO has access through a sister
company to an independent and fully licensed state-of-the-art
warehouse with 64,500 feet2 located in San Antonio La Isla, State of Mexico. This
facility complies with the mandatory infrastructure regulations and
is licensed for pharmaceutical products in the Mexican
marketplace.
Manuel Cosme Odabachian, CEO of
MINO says, "We are proud to partner with PharmaCielo in order to
attempt to bring unique, cannabinoid-based wellness products to the
Mexican market. Our experienced sales team has experienced an
accelerating demand from both pharmacies and doctors across the
country for medicinal-grade cannabis products, and with this
partnership, we believe we are well positioned to meet that demand
with top-quality cannabis oil health and wellness products prepared
based on the specific formulation needs of the market."
PharmaCielo's CEO, David Attard,
added, "Today's announcement also satisfies our ultimate objective
to identify a strategic path to make a positive economic impact on
any country we choose to enter. Ultimately, the opportunity with
Mexico should combine the value of
equatorial Colombian cultivation with the local expertise to create
market-specific formulations and products, building and staffing
second-stage operational facilities with the advanced expertise
required, all without cannibalizing the value that Colombia brings to the table."
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About PharmaCielo
PharmaCielo Ltd. 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.
About Mino Labs
Mino Labs S.A. de C.V. is a specialty pharmaceutical company and
medical supply distributor based in Mexico with more than 20 years of experience.
The company has distribution, warehousing and commercialization
facilities throughout the Mexican territory supplying strategic
chain, independent and retail drugstores as well as
government-sector institutions with pharmaceutical, biological and
OTC products. MINO has a fully operational license through its
sister company BODEGAS CERO GRADOS S.A. de C.V. (COFEPRIS License
15 040 08 0001) and a state-of-the-art 64,500 feet2
warehouse in compliance with appropriate infrastructure
requirements and licences for pharmaceutical products.
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
timing of delivery of cannabis to the Mexican market under the JV,
the entering into of a long term supply
agreement, the timing of obtaining necessary
regulatory applications and registrations required to conduct the
contemplated business of the JV in Mexico, the entering into of a
co-branding license agreement, the timing of revenue
generated from the sale of cannabis and developing business
relationships domestically and internationally including under the
JV. Forward-looking statements are based on assumptions, including
with respect to PharmaCielo's planned products, and the ability 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, 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, risks associated
with operating in Colombia and
Mexico, 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