- Investment of CDN$4 million expands Colombian processing capabilities twelvefold through addition of high-volume extraction equipment and proprietary techniques
- Annual extraction capacity increased to 265 tonnes, as Company has begun processing inventory of 18 tonnes of dried flower currently in storage
- Increased production of oil extracts will support international supply channels and product manufacturing following Creso Pharma acquisition closure
- PharmaCielo was recently granted approval for commercial export of non-psychoactive (CBD) isolate from the Colombian Government
TORONTO and RIONEGRO, Colombia, Aug. 1, 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., is ramping up its oil processing capabilities in the Company's Rionegro, Colombia facility following the recent acquisition and installation of additional high-performance, high-volume extractors, combined with proprietary extraction techniques.
After receiving approval for commercial export of non-psychoactive (CBD) isolate PharmaCielo has expanded its extraction processing capacity to 265 tonnes of dried flower to meet anticipated global demand for its high-grade medicinal cannabis oils, feeding international supply channels and product production lines following the recent achievement of Colombian government approval for commercial export of non-psychoactive (CBD) isolate combined with announcement of the Company's intent to acquire Creso Pharma Limited (ASX:CPH) ("Creso Pharma").
"As global demand for medicinal cannabis oils and extracts continues to outpace supply, we are taking the right steps with prudent investment in processing infrastructure to ensure that we capitalize on business opportunities to become the leading supplier globally," said David Attard, CEO at PharmaCielo. "With the recently announced agreement to acquire Creso Pharma, we have the opportunity to expand our global footprint and add an extensive portfolio of animal and human CBD products, which when combined with commercial export approval and inbound order demand puts us at the stage where we need to ramp up production."
Along with the expansion of its extraction capabilities, PharmaCielo also announced it has surpassed the 18-tonne mark of dried flower currently under inventory and immediately ready for processing. The Company also continues to expand the land area under active cultivation, currently at 12.1 hectares (capable in annual cultivation in excess of 0.48 million kg) from 5.3 hectares at the beginning of the year, with additional cultivation expansion expected to continue throughout the balance of the year.
"Since receiving Colombia's first-issued manufacturing and cultivation licenses, we have utilized the opportunity to conduct trials with the full range of processing equipment and to determine which methodology best meets individual strain and finished-product requirements, as well as to develop proprietary methodologies," added Attard. "Deep experience with all the processing technologies leaves us well positioned to immediately capitalize on installation of the new equipment and not lose valuable production time learning relative ins-and-outs."
The additional processing equipment now in place complements technologies previously manufactured and installed by Canadian firm Vitalis, the global leader in industrial-scale supercritical CO₂ extraction, and will immediately increase annual dried flower processing capacity in support of previously announced strategies for the expansion of hectares under cultivation, with a corresponding increase in finished oil production. Laboratory analysis conducted has demonstrated purity of CBD isolate extraction certified as greater than 99+%, and readily accommodating multiple international requirements for commercial import.
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.
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.
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 an increase in the global medicinal demand for CBD cannabis, the ability of PharmaCielo to fulfill global demand for pure CBD medicinal cannabis oil extracts, the anticipated acquisition of Creso Pharma, and expected continued cultivation expansion. Forward-looking statements are based on assumptions, including with respect to anticipated global demand for CBD cannabis, that the acquisition of Creso Pharma will be completed, that cultivation expansion will continue at the anticipated rate, and the ability of PharmaCielo to execute its business plan that management believes are reasonable in the circumstances, but the actual results, performance or achievements of PharmaCielo's business may be materially different from any future results, performance or achievements expressed or implied by any forward-looking statements. Forward-looking statements can be affected by known and unknown risks, uncertainties and other factors, including, but not limited to, uncertainty of the cannabis market generally, risks generally associated with acquisitions including the parties ability to meet all conditions precedent to an acquisition and receipt of all necessary regulatory approvals, the equity markets generally, risks associated with early stage companies, risks associated with the regulation of cannabis and cannabinoid derivatives, failure to obtain necessary TSXV approval, competition for PharmaCielo's planned products, and risks associated with operating in Colombia. 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.
SOURCE PharmaCielo Ltd.
For further information: David Gordon, Chief Corporate Officer, +1.416.864.6116, www.PharmaCielo.com; Media Relations: International: Gal Wilder, Cohn & Wolfe, +1.647.259.3261, [email protected]; Colombia: María Paula Peña Fdz., SPR GROUP S.A., PBX: 57-1 2877234, [email protected]; Investor Inquiries: [email protected]