Colombian Government Passes Regulation to Enable Dried Flower Export and Expand Industrial Applications for CBD-Based Products
February 20, 2022
- PharmaCielo expects to begin exporting dried flower in the first half of 2022, with volumes growing through the remainder of the year.
- The Company’s upstream and downstream scale and quality uniquely position it to be a formidable competitor with psychoactive flower currently being imported into the EU and other markets from Canada and other producing countries.
- The new regulation also creates greater legal clarity, provides quotas for a new low-THC extract category and offers producers new business opportunities.
TORONTO, Canada and RIONEGRO, Colombia , Feb. 20, 2022 /CNW/ – PharmaCielo Ltd. (“PharmaCielo” or the “Company”) (TSXV: PCLO) (OTCQX: PCLOF), 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 welcomed the Colombian Government’s passing of Regulation 227 (the “Regulation”), which aims to make the country’s cannabis industry more competitive on a global scale. In July 2021, the Colombian government signed Decree 811 into law. The government’s announcement today introduces a set of practical regulations implementing the legal provisions of Decree 811 that, among other important advances, will enable PharmaCielo and other producers to begin exporting dried flower and access additional opportunities for CBD-based products. In the coming weeks, the Colombian government is expected to release further technical commercial guidelines.
With the GACP1 designation already in place, and the ability to re-allocate part of its existing 50 tonne quota toward dried flower, PharmaCielo expects that it is well-positioned to begin exporting dried flower during the first half of 2022, with volumes growing through the remainder of the year.
Bill Petron, CEO of PharmaCielo, commented, “The passing of the Regulation 227 is a historic development for the Colombian cannabis industry, opening the large and growing global dried flower market as well as multiple CBD-based opportunities, to Colombian producers. The Colombian government has consistently demonstrated its desire to build this industry into a global leader, and in our opinion the announcement today makes Colombia the most export-friendly and competitive jurisdiction in the world. Dried flower accounts for up to 50% market share in most mature cannabis markets globally, and represents a massive opportunity both for the Colombian industry, and PharmaCielo. With scalable cultivation and processing capacity in place, a structural cost advantage, and the sophistication to ensure consistently high-quality products, PharmaCielo is positioned to capture market share against current international exports from markets like Canada.”
Mr. Petron continued, “The government’s revised approach to the quota system will both ensure speed to market, as well as greater efficiency throughout the sales process. We expect 2022 to be a very exciting year of growth for PharmaCielo, as we launch and expand dried flower exports, bringing global patients access to high quality, affordable medical cannabis products.”
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, Chief Financial Officer
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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 in this news release include, without limitation, statements regarding the issuance of the Units, including the terms thereof and the closing date therefor.
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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.
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