- 2019 market introduction revenues projected at minimum
$3 million CDN
- Agreement covers sales and distribution of medicinal CBD
isolate in multiple US states commencing in 2019 with allowance for
renewal and volume expansion in 2020
- Introductory shipments, meeting CBD isolate requirements of
2018 Farm Bill, successfully completed
- Congressman Dana Rohrabacher,
advisor to the Company, celebrates contribution to American
medicinal community
TORONTO, Sept. 25, 2019 /CNW/ - PharmaCielo
Ltd. ("PharmaCielo" or the "Company") (TSXV:PCLO,
OTC:PHCEF), the Canadian parent of Colombia's premier cultivator and producer of
medicinal-grade cannabis oil, PharmaCielo Colombia Holdings S.A.S.,
announced that it has signed a United
States sales agreement (the "Agreement") with an established
multi-state distributor, General Extract LLC ("General
Extract"). According to the non-exclusive Agreement,
PharmaCielo will provide the distributor with bulk medicinal CBD
isolate meeting the purity requirements of the 2018 USA Farm Bill,
for sale in multiple states including California and Colorado. The Agreement
addresses the balance of 2019 and allows for both renewal and
volume expansion in 2020 based on market demand.
PharmaCielo has already successfully concluded initial shipments
to the distributor in verification of shipping routes and
international trade and customs requirements, with contracted
shipping volumes planned for the balance of the year as per the
Agreement. Introductory revenues under the contract provide 2019
revenue of $3 million CDN, with
allowance for increased volumes within the period under the
Agreement based on market demand, and expansion on agreement
renewal for subsequent periods.
The Agreement marks PharmaCielo's initial foray into the coveted
United States market as a supplier
of medicinal-grade CBD isolate, allowing the Company to expand its
offerings in the near future with additional CBD products
consistent with the 2018 Farm Bill.
"The 2018 Farm Bill introduced an entirely new category and
opportunity for an earlier entry into the
United States marketplace, one of the world's leading
medicinal CBD markets," noted David
Attard, CEO of PharmaCielo. "To say we are excited
about this milestone is an understatement. Our business strategy is
focused on large-volume, large-market relationships, and we are
fully equipped to process in excess of 265 metric tonnes of dried
flower into isolates and extracts to meet the high demand, with
continued processing capacity expansion under way."
The entry into the United
States marketplace comes on the heels of PharmaCielo's
previously announced sales agreements and entries into various
other global markets.
Former Congressman Dana
Rohrabacher, advisor to PharmaCielo, commented: "The
availability of PharmaCielo's high-quality CBD isolate to the
medicinal CBD community in the U.S. is of tremendous significance.
This Colombia-based CBD isolate is
of the highest quality and purity. It will serve as a
benchmark for comparison to other sources of CBD. This type
of competition will raise the standard and directly benefit
Americans who need it the most, giving them a chance to compare and
the freedom to consume and to make a choice. What can be more
important than that?"
PharmaCielo initiatives for distribution of its CBD isolate
product in the US market as identified in the Agreement are subject
to receipt of prior written approval of the TSX Venture Exchange
(the "TSXV").
About PharmaCielo
PharmaCielo Ltd. (TSXV:PCLO, OTC:PHCEF) is a global company,
headquartered in Canada, with a
focus on ethically and sustainably processing and supplying 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 General Extract
General Extract was founded in 2015 as an importer, distributor,
broker and post-processor of hemp and hemp derivatives. Working in
value-add areas of the supply chain, General Extract operates a
hemp-derivative refinement and distribution center in Denver, Colorado. As an intermediary in the
global supply of cannabis products, General Extract is closely
aligned with both the upstream and downstream cannabis industry
leaders. For more information, please email
GeneralExtractCo@gmail.com.
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
PharmaCielo providing General Extract with CBD isolate, projected
revenue in 2019 of $3 million CDN,
the expansion of the offering of additional CBD products into
the United States market,
PharmaCielo's ability to process in excess of 265 metric tonnes of
dried flower, and PharmaCielo obtaining TSXV approval for
distribution of its CBD isolate into the US market. Forward-looking
statements are based on assumptions, including with respect to
PharmaCielo's ability to meet its obligations under the Agreement
including supplying General Extract with CBD isolate, PharmaCielo's
ability to achieve projected revenue of $3
million CDB in 2019, the ability to expand its product
offerings into the United States
and PharmaCielo's ability to obtain necessary regulatory and TSXV
approval in order to deliver its CBD products into the United States. Management believes that
these assumptions are reasonable in the circumstances, but the
actual results, performance or achievements of PharmaCielo's these
objectives may be materially different from any future results,
performance or achievements expressed or implied by any
forward-looking information. Forward-looking information can be
affected by known and unknown risks, uncertainties and other
factors, including, but not limited to, risks associated with the
regulation of cannabis and cannabinoid derivatives in the United States including the uncertainty of
the legal regulatory regime, failure to obtain necessary regulatory
approval to execute its business objectives under the Agreement,
competition in the United States
for CBD providers to service that market, adverse changes in the
public perception of cannabis, increasing costs of compliance and
government regulation and changes in general economic, business,
and political conditions including changes in the financial
markets.
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.