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PharmaCielo Becomes Colombia's First Fully Licensed, Fully Operational Cultivator and Processor of Cannabis Oil Extracts

RIONEGRO, Colombia and TORONTO, Canada (October 24, 2017) – PharmaCielo Colombia Holdings S.A.S., the Colombian subsidiary of PharmaCielo Ltd., has been granted the first Colombian licences for the cultivation of cannabis with unrestricted percentages of tetrahydrocannabinol (THC) and cannabidiol (CBD) alike, becoming the world's largest licensed producer. In 2016, the company received a manufacturing licence and has since established a fully functional and government-approved cultivation and processing facility in Rionegro.

“To say that we are excited is an understatement, as to date the Colombian government has issued licences only for the cultivation of non-psychoactive cannabis containing little to no THC,” said Federico Cock-Correa, Director and CEO of PharmaCielo Colombia Holdings. “Receipt of the dual licences for psychoactive and non-psychoactive cannabis containing THC and CBD, combined with the fact that we have Colombia’s only fully functional cultivation and processing facility inspected and approved by the government, allows PharmaCielo the opportunity to become Colombia’s first and leading producer of medicinal-grade oil extracts.”

Receipt of cultivation licences that enable the propagation of the full range of cannabis varietal possibilities enables the Company to develop a complete vertical offering of standardized, medicinal-grade formulations containing all active elements, including levels of THC greater than +1.0%. PharmaCielo is now positioned as Colombia’s first unrestricted producer of medicinal-grade oil extracts and related products and is capable of providing reliable, standardized relief and wellness formulas for patients in need, including those requiring higher levels of THC.

Since receiving its manufacturing licence in 2016, PharmaCielo has developed an extensive nursery and propagation centre in Rionegro. The facility features 12.1 hectares (1.3 million square feet) of open-air greenhouses ready for cultivation. The facility has been independently reviewed and certified by the government as part of overall licensing, and in the future, will supply plant seedlings to over 1,000 hectares (2,500 acres) of contract growers’ open-air greenhouses for final cultivation.

“We are obviously very happy with today’s announcement,” said Dr. Patricio Stocker, President and CEO of PharmaCielo Ltd. “Over the past year, since we were granted our initial licence, we have invested considerable effort and resources into building the infrastructure required for cultivation and processing of cannabis oils as well as working together with rural communities to help build a new Colombian agricultural sector to join coffee and flowers.”

Earlier this year, the company announced a partnership agreement with Cooperativa Caucannabis (comprised of 63 campesinos and indigenous farmers), based in the department of Cauca, which separately applied for a cultivation licence for a new greenhouse facility to be jointly operated with PharmaCielo. The members of Cooperativa Caucannabis have since been certified by the government as independent small growers and expect the government’s response to their application in the coming days.

“The Colombian government has put significant effort into ensuring all Colombians benefit from this new industry,” added Cock-Correa. “When combined with the skills and resources of PharmaCielo, the certification of small growers by the Colombian government ensures that the dedicated focus on the Colombian peoples who will benefit is maintained.”

Receipt of unrestricted licensing validates the commitment of PharmaCielo to Colombians as a whole, and to establishing facilities that meet and exceed the security requirements necessary to establish a global standard for the secure cultivation of cannabis, in acknowledgement of the realities of past global experiences.

Major General Jose Vicente Ureña Molina, Chairman of the PharmaCielo Colombia Holdings board, commented, “Part of the reason we have received the first unrestricted licence was because of our commitment to setting an extremely high standard of overall security. Our Rionegro facility, similar to our planned facility in Cauca, has been optimized both structurally and operationally with state-of-the-art systems and operating policies designed to ensure the entire seed-to-sale process is completely monitored and accountable and that nowhere along the line will security be compromised.”

“We intend to immediately begin cultivation, processing and scientific testing of highly standardized, premium-quality cannabis oil extracts and related products demanded by the international marketplace,” added Dr. Stocker. “We expect to initiate sales and distribution of finished products to the global marketplace in 2018, to the benefit of all stakeholders.”

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. 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, has built a compelling business plan focused on supplying the international marketplace.

This press release may contain forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “estimates”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or “recurring” or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors, such as demand for the Company’s products, currency exchange changes and risks, internal funding and the financial condition of the Company, product roll-out, competition, technological changes, and other commercial matters involving the Company, its products, and the markets in which the Company operates, as well as general economic conditions, which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. 

Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this press release. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

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