RIONEGRO, Colombia/TORONTO, Canada (July 25, 2016) – PharmaCielo Ltd. today announced that through its wholly owned Colombian subsidiary, PharmaCielo Colombia Holdings S.A.S., the company has completed another key step towards its strategy of becoming a leading global supplier of naturally grown and processed, standardized medicinal-grade cannabis oil extracts and related products by purchasing 100% of a long-established, self-sustainable 27-hectare nursery and propagation centre in Rionegro, Colombia.
The 30-year-old turnkey facility houses an office building and more than 12 hectares of open-air greenhouses, along with all necessary equipment and infrastructure required to manage the nucleus of PharmaCielo’s strain genetics. The nursery and propagation centre is capable of supplying more than12 million mother-plant cuttings per week – the estimated number eventually required to support a planned 600-hectare contract cultivation and harvesting operation.
PharmaCielo paid a combination of cash and securities in order to acquire 100% of both the land and all above-ground assets. The total purchase price paid was US $5,020,325 in cash and 1,701,000 common equity shares.
“The purchase of this fully operational ‘green’ nursery and propagation centre, which includes a natural water reservoir, represents a significant milestone for PharmaCielo and demonstrates our commitment to developing a world-class facility that takes advantage of Colombia’s ideal growing conditions, operational experience and low-cost production environment,” said Patricio Stocker, President and CEO of PharmaCielo Ltd.
The Rionegro region itself – long known for its exceptional climate and natural cultivation environment – is one of the world’s leading locations for the production of cut flowers. The area is home to thousands of hectares of self-sustainable open-air greenhouse operations staffed with highly experienced technical agriculture teams.
“To make the switch from cultivating hundreds of varieties of cut and ornamental flowers to cultivating feeder stock cannabis flower to support our planned oil processing activities is not a difficult challenge for these experienced flower growers,” said Dr. Stocker. “Now that we have acquired one of the most important components of our operating business model, which will serve as the supply source of all of PharmaCielo’s genetic strains, we will be fast-tracking the completion of security and other provisional modifications necessary to comply with government regulations. Once completed, we will be focusing our efforts on strain selection and related research activities that will enable us to maximize both cultivation and processing yields.”
In order to comply with licensing requirements and as part of PharmaCielo’s commitment to strictly adhere to all governmental licensure rules and regulations, the company has been actively engaged in implementing a number of security and operational enhancements to the nursery and propagation centre over the past several weeks, which include the following:
PharmaCielo will continue to provide updates as available.
About PharmaCielo Ltd.
PharmaCielo Ltd. is a global company privately held and headquartered in Canada, with a focus on processing and supplying all natural, medicinal-grade cannabis oil extracts and related products to large channel distributors of standardized medical cannabis products.
The boards of directors and executive teams of PharmaCielo Ltd. and PharmaCielo Colombia are comprised of a diversely talented group of international business executives and specialists with the relevant expertise to ensure long-term success. The team recognized the significant role Colombia’s ideal location would play in building a sustainable business in the medical cannabis industry and has built a strong business plan focused on supplying the international medical marketplace.
PharmaCielo Colombia Holdings S.A.S., a wholly owned subsidiary of PharmaCielo Ltd., is headquartered at the company’s Nursery and Propagation Centre in Rionegro, Colombia.
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