- Will bring unique high-THC Colombian strains owned by PharmaCielo to Europe for the first time.
- Combines PharmaCielo's expertise in producing premium medicinal cannabis products, with CANNPRISMA's conversion capabilities, to bring patients in Europe the highest quality high-THC flower product currently available in the market.
Toronto, Ontario and Rionegro, Colombia--(Newsfile Corp. - April 19, 2023) - PharmaCielo Ltd. (TSXV: PCLO) (OTCQX: PCLOF) ("PharmaCielo" or the "Company"), the Canadian parent of Colombia's premier cultivator and producer of dried flower and medicinal-grade cannabis extracts, PharmaCielo Colombia Holdings S.A.S. ("Holdings"), today announced that it has partnered with CANNPRISMA - PHARMA, LDA ("CANNPRISMA"), a Portuguese Contract Manufacturing Organization ("CMO"), to supply high-quality EU-GMP1 certified medicinal cannabis flower to the European market. PharmaCielo will provide GACP2 flower to CANNPRISMA, which will convert the flower to EU-GMP standards and distribute it directly from Portugal to European customers. CANNPRISMA is a Portuguese medical cannabis company founded in 2018 that encompasses all aspects of the production process, from cultivation to distribution and research. The company's main objective is to provide high-quality medicinal cannabis products that comply with GACP and GMP standards, and serve as a reference in the market, ultimately contributing to enhancing the quality of life for as many people as possible.
Bill Petron, CEO of PharmaCielo, said, "We are very pleased to announce this agreement to ship THC-dominant dried flower to the European market. Against a tough macro backdrop for all publicly traded cannabis companies, PharmaCielo has taken the right steps to ensure it is positioned to drive results and build value for shareholders as the sales team continues to deliver on its growing pipeline of opportunities."
Mr. Petron continued, "We strongly believe that companies who have access to Europe will benefit from a substantial shift in both medical demand and the potential for adult-use legalization, but it will take time. Our team has created a capital-light product introduction strategy to bring our THC-dominant flower to key markets in the EU. This approach, learned from our experience in other global markets, ensures we are in the supply chain early without overcommitting to a market prematurely, which is a mistake that has been made by others in the industry. PharmaCielo has a structural cost advantage compared to any North American player currently shipping into the European market, with very high-quality products, unique strains and a business model that is poised to rotate to cash flow positive as the revenue line continues to grow. Our team is very excited about the opportunities ahead of us over the next several quarters."
Shares for Debt
On April 14, 2023, the TSX Venture Exchange accepted for filing the Company's proposal to issue 1,549,627 shares and to settle outstanding debt for $437,615 at a deemed price of $0.2824 per share in consideration of certain services provided by former employees of the Company pursuant to employment agreements and subsequent settlement agreements. For more information, please refer to the Company's news release dated February 02, 2023. The Company shall issue a news release when the shares are issued, and the debt extinguished.
Grant of Stock Options
On March 31, 2023, the Company granted an aggregate of 4,010,000 stock options to directors, officers, and key employees. The options vest over two years, are exercisable at a price of $0.22 per share and expire five years from the date of grant. The options are granted pursuant to the Company's stock option plan.
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, pharmaceutical-grade medical cannabis 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 center 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.
For further information:
Ian Atacan, Director & Chief Financial Officer
+1 416-562-3220
i.atacan@pharmacielo.com
Media and Investor Inquires:
investors@pharmacielo.com
Forward-Looking Statements
This news release contains forward-looking statements. Forward-looking statements can be identified by the use of words such as "expects", "is expected", "intends", "anticipates", "believes", or variations of such words and phrases or state that certain actions, events or results "may" or "will" be taken, occur or be completed or achieved.
Forward-looking statements can be affected by known and unknown risks, uncertainties and other factors, including changes to PharmaCielo's development plans, the failure to obtain and maintain all necessary regulatory approvals relating to the export of cannabinoid products and the import of these products into other countries, TSX Venture Exchange approval, the inability to export or distribute commercial products through sales channels as anticipated due to economic or operational circumstances, risks associated with operating in Colombia, fluctuation of the market price for the Company's products, risks associated with global economic instability relating to COVID-19 or other developments, risks related to retention of key Company personnel, currency exchange risk, competition in PharmaCielo's market and other risks discussed or referred to under the heading "Risk Factors" in PharmaCielo's Annual Information Form for the financial year ended December 31, 2019, which is available at www.sedar.com. 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.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
1 Good Manufacturing Practices
2 Good Agricultural and Collecting Practices
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