Including Initial Shipment, PharmaCielo will deliver total 1,000 kg of product to Customer – with revenue and cash flow reflected in 2020; interim 2021 sales agreement reached for continued Q1 volume and revenue.
Relationship adds U.K. and additional E.U. exposure to PharmaCielo's current commercial relationships in the U.S., Germany, Switzerland and broader E.U.
Currently submitting for Novel Foods Certification to support volume growth of CBD Isolate and Broad Spectrum as consumable ingredient in the U.K. and E.U. markets.
TORONTO and RIONEGRO, Colombia, Nov. 18, 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., is pleased to announce that it has delivered its first commercial shipment of medicinal grade CBD isolate (the "Initial Shipment") to a well-established, bulk distributor and white label manufacturer based in the U.K., with sales and distribution operations in the U.K., and the E.U. (the "Customer").
In addition, the Company has reached an interim sales agreement with the Customer, lasting until the end of Q1-2021, at which point PharmaCielo expects to have submitted a Novel Foods authorization application for its range of CBD extracts. The interim, renewable agreement enables continued shipments for the remainder of 2020 and calls for the shipment of up to 1,000 kg of CBD Isolate and Broad-Spectrum CBD based on the Customer's specifications, during Q1-2021. With submission of the Novel Foods authorization application prior to March 31, the Company expects to be in a position to subsequently expand both volume and exported consumable product types during fiscal 2021 in accordance with regulatory requirements.
"As consumer demand for health and wellness products containing cannabinoids continues to expand, PharmaCielo is well-positioned to deliver a portfolio of medicinal-grade extracts at scale to serve the needs of global CBD-market facing providers," said David Attard, CEO of PharmaCielo Ltd. "Having focused to date on building a world-class infrastructure in Colombia as well as developing a robust product portfolio, we are ideally positioned to become the supplier of choice for large volume B2B sales globally. 2021 will be a very exciting year for the Company as we significantly expand global export volumes, and the addition of the Customer's relationships throughout international markets long-term, including the U.K. and E.U., support this focus."
Distribution of CBD products by the Company under its interim sales agreement with the Customer is subject to the approval of the TSX Venture Exchange (the "TSXV").
Novel Foods Certification
Novel Foods Certification – obtained from the U.K. Food Service Agency – confirms that consumable CBD products, including isolates, meet strict quality and production process standards in accordance with U.K. and E.U. regulatory requirements regarding consumer protection. The Customer is currently supporting PharmaCielo's efforts to attain this certification.
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 cultivation and processing centre 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.
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 in this news release include, without limitation, statements with respect to: PharmaCielo's application for and receipt of Novel Foods Certification for its products; PharmaCielo's future business plans including PharmaCielo's plan to expand the volume and breadth of its exports, the jurisdictions to which PharmaCielo intends to export its products and the size of PharmaCielo's future product shipments; and market demand for products containing cannabinoids and PharmaCielo's positioning in such market. The forward-looking statements in this news release are necessarily based on assumptions, including, without limitation, assumptions with respect to: PharmaCielo's ability to execute its business plan as currently contemplated; PharmaCielo's ability to apply for and obtain Novel Foods Certification for its products in accordance with anticipated timelines; PharmaCielo's ability to maintain its distribution contracts in good standing, including the interim sales agreement with the Customer; and the accuracy of PharmaCielo's projections regarding the market for cannabinoid products. Though management believes that its assumptions are reasonable in the circumstances, 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 herein. Forward-looking statements can be affected by known and unknown risks, uncertainties and other factors, including, but not limited to: changes to PharmaCielo's development plans; the failure to obtain and maintain all necessary regulatory approvals relating to the export of cannabinoid products, including approval of the TSXV; 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; risks associated with global economic instability relating to COVID-19; 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.
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.
SOURCE PharmaCielo Ltd.
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