‘It is not an overnight process’: Q&A with David Gordon of Colombian hemp producer PharmaCielo
Hemp Industry Daily, By Renzo Pipoli, Sept. 25, 2019
(Hemp Industry Daily Editor’s note: David Gordon will appear at the MJBizDaily Latin American Cannabis Symposium, Sept. 30-Oct. 1, in Bogota, Colombia.)
Cannabis companies are investing heavily in Latin American markets, where low-THC varieties known as hemp in the U.S. play a large role in nascent medical marijuana regulations.
The companies that entered Colombia in recent years are seeing in 2019 their first revenues after nearly half a decade of nothing but negative cash flows; however, a break-even year has yet to be attained.
Canada-based PharmaCielo (TSXV: PCLO) had a net loss of USD $24 million last year, up from $7.6 million in 2017. It posted a US$14 million net loss in the first half of 2019. However, the company has started to generate revenues in 2019 and is planning to expand sales next year.
To find out more about the market outlook for hemp in Colombia, Hemp Industry Daily talked to David Gordon, chief corporate officer for PharmaCielo, one of the region’s most significant cannabis investors. Based in Toronto, PharmaCielo is the parent of PharmaCielo Colombia Holdings, a producer of medical cannabis oils in Colombia. …
Is the company seeing its first revenue streams in Colombia this year?
In general, the industry as a whole is building the infrastructure and is still in a development mode as we enter the stage of commencing commercial sales.
Specifically, for PharmaCielo, we have now exported to a number of customers in international markets. So, in 2019 we have begun commercial sales, and in 2020 and 2021 we plan to continue and expand significantly. To support this, PharmaCielo is at the final stages of building an extended processing capacity to meet global demand. …