Company signs a three-year performance-based agreement with CBD Export Global
Distribution channel covers the entire EU-zone as well as Switzerland and Lichtenstein
Shipments to commence in 2020 with increasing volumes during duration of Agreement
TORONTO and RIONEGRO, Colombia, Jan. 24, 2020 /CNW/ - PharmaCielo Ltd. ("PharmaCielo" or the "Company") (TSXV: PCLO, OTCQX: PCLOF), the Canadian parent of Colombia's premier cultivator and producer of medicinal-grade cannabis extracts, PharmaCielo Colombia Holdings S.A.S., announces it has signed a three-year pan-European distribution agreement (the "Agreement"), in which the Company's high-grade CBD isolate and broad-spectrum CBD oil will be sold to wholesalers and medicinal CPG product manufacturers through GMP certified lab owner, CBD Export Global.
The Agreement with the Quebec, Canada-based CBD Export Global expands PharmaCielo's distribution network in Europe with shipments into the EU to commence in 2020 with increased volumes during the duration of the agreement as B2B markets are expanded. A minimum target volume of 2,000 kg has been agreed to in the first year of the three-year performance-based Agreement, allowing for confirmation of individual market regulatory approvals and enabling increased sales volume expansion in subsequent years.
"The agreement with CBD Export Global is part of PharmaCielo's second-phase growth strategy complementing the first phase in which we established one of the largest cultivation and extraction operations in Colombia and initiated global sales, and now in the second phase expanding the distribution network as production volumes increase on a daily basis to take our high-quality medicinal CBD extracts to global markets," says David Attard, Chief Executive Officer of PharmaCielo. "In 2019 we saw global demand for quality medicinal extracts increasing on an ongoing basis. In 2020 we are further expanding our distribution and sales channels. The collaboration with CBD Export Global will play a key role in our continued growth."
The distribution agreement with CBD Export Global is entered into with the intent of continued market expansion beyond 2019's experience successfully completing commercial shipments of CBD isolate from PharmaCielo to the U.S. and Switzerland.
"As a fellow Canadian company helping to build a global industry, we are delighted to build a relationship with PharmaCielo as we access the global industry for the very best of both product supply and, with recognition of their position as the first and only global GAP certified cannabis supply chain from Colombia to Europe, the ability to meet the needs of a demanding global medicinal marketplace," says Alex Grenier, Chief Executive Officer of CBD Export Global.
CBD Export Global is focused on establishing the market standard in originating, handling, processing and marketing a wide range of cannabis derivatives to downstream manufacturers of products – including the processing industry (medical, cosmetic, animal and consumer products), local importers and government purchasing bodies. With its strategic network of assets and infrastructure, including its cGMP certified laboratory and strong relationships along the supply chain, CBD Export Global meets the needs of customers around the world.
Distribution by PharmaCielo into European countries under the Agreement is subject to the approval of the TSX Venture Exchange.
About CBD Export Global CBD Export Global is a Quebec, Canada-based company establishing the market standard in originating, handling, processing and marketing a wide range of cannabis-derived products, with a dedicated focus on supply-chain management for provisioning leading brands and product manufacturers. As the owner of C-Crest Laboratories, a cGMP certified laboratory licensed by Health Canada, certified testing services are provided to cannabis producers and processors.
CBD Export Global sources a diverse range of legal and certified cannabis derivatives – buying directly from producers and farming co-operatives wherever legally possible through government programs worldwide; handling and processing cannabis with a focus on sustainability, safety and reliability and marketing cannabis derivatives to downstream manufacturers of products around the world, local importer, and government purchasing bodies.
With its strategic network of assets and infrastructure, and strong relationships along the supply chain, CBD Export Global meets the needs of customers around the world.
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, 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.
Forward Looking Statements
Certain statements contained in this news release, such as those relating to anticipated commercial sales of CBD isolate in EU countries in 2020, an increase in volumes of product sold under the Agreement and approval by the TSXV of the export of PharmaCielo products to European Union countries under the Agreement are "forward-looking information" as such term is used in applicable Canadian securities laws. Forward-looking information is based on plans, expectations and estimates of management of the Company at the date the information is provided and is subject to certain factors and assumptions, including the continued ability of the Company to obtain all necessary governmental regulatory and TSXV approval related to the commercialization and exportation of PharmaCielo's medicinal CBD products from Colombia to European Union countries, that the market for CBD will allow PharmaCielo to sell its products under the Agreement or other under commercial agreements at prices that are profitable, that European Union regulations relating to CBD isolate will not alter so as to negatively impact the Company's business, that the Company's financial condition and development plans do not change as a result of unforeseen events, and management's ability to execute its overall business plan. Forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause plans, estimates and actual results to vary materially from those projected in such forward-looking information. Factors that could cause the forward-looking information in this news release to change or to be inaccurate include, but are not limited to, the risk that any of the assumptions referred to prove not to be valid or reliable, the regulatory regime relating to the importation of cannabis products into European Union countries differs between countries and is constantly evolving and as a result is subject to uncertainty, that the market for CBD products in the European Union is volatile and could diminish the profitability of the Company's products, failure to obtain necessary TSXV or applicable government regulatory approvals related to the exportation from Colombia or importation of the Company's products into the European Union, that the Company may be unable to export or distribute its products to its sale channels due to economic or operational circumstances, risks associated with operating in Colombia, as well as the other risks and uncertainties applicable to cannabis producing companies. The Company undertakes no obligation to update these forward-looking statements, other than as required by applicable law.
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]