Toronto, Ontario and Rionegro, Colombia--(Newsfile Corp. - March 1, 2024) - 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 commented on the recent decision by the Colombian Ministries of Health, Justice, and Agriculture (the "Ministries") to extend the timeframe within which THC products may be sold. The Ministries have passed a resolution allowing producers up to 48 months to sell these products following their production, compared to the original 24 months (the "Resolution"). This Resolution is of immediate benefit to the industry and to PharmaCielo. As the country's largest cannabis producer, PharmaCielo has over 2.0 tonnes of THC extract in inventory to support expected growth in international sales in the following years, which would have been subject to destruction under the legacy framework.
Management Commentary
Marc Lustig, Chairman and CEO of PharmaCielo, commented, "On behalf of PharmaCielo, I would like to thank the Colombian government for its commitment to fair regulation that enables the safe and efficient operation of the domestic cannabis industry, along with its competitiveness on a global scale. This resolution will enable the retention of high-quality THC extracts in inventory both now and longer term, to ensure we can quickly fulfill demand as our international customer base continues to grow."
Shares for Settlement of Certain Amounts Owing
Today, the Company also announced that it intends to issue, subject to the approval of TSXV, up to 2,079,152 common shares of the Company ("Settlement Shares"), in satisfaction of an aggregate of up to $457,415 debt owed to certain former service providers and employees of the Company. The deemed price of the common shares to be issued have been approved by TSXV to be C$0.22, being the higher of the price of common shares at market close, or 10-day Volume Weighted Average Price on the date the board of directors of the Corporation approved issuance of shares, (the "Deemed Price"). The Settlement Shares will be subject to a four-month hold period under applicable Canadian securities laws, starting from the date of issuance of the Settlement Shares.
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:
Commercial Inquiries:
Ana Maria Restrepo
A.restrepo@pharmacielo.com
Ian D. 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 2019, and the Management's Discussion and Analysis for the financial year 2022 which are both 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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/199979
SOURCE: PharmaCielo Ltd.
