- The Company will start supplying the German market with three THC-dominant products, with commercial shipments expected to begin in late 2022.
- This is PharmaCielo's first sales agreement related to THC products. Represents a significant milestone related to management's re-focusing of PharmaCielo's product strategy toward THC-dominant products.
TORONTO and RIONEGRO, Colombia, Feb. 14, 2022 /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. ("Holdings"), today announced that it had signed a sales agreement (the "Agreement") with Greenstein Germany GmbH ("Greenstein"), an independent pharmaceutical wholesaler specializing in the distribution of cannabis-based phytopharmaceuticals in Germany. Greenstein has a joint venture with NOWEDA e.G. ("NOWEDA"), a German pharmacist-owned cooperative founded in 1939 that supplies all pharmacies across Germany. Under the Agreement, PharmaCielo will initially supply NOWEDA via Greenstein three THC-dominant final products, with shipments expected to begin in late 2022. Additional details related to the Agreement were not disclosed.
Management Commentary
Bill Petron, CEO of PharmaCielo, commented, "Through its joint venture with NOWEDA, Greenstein has access to one of the largest pharmaceutical wholesale distribution networks in Germany. Between NOWEDA's reach, and the built-in scalability of PharmaCielo's operations, we see a substantial opportunity to build this relationship over the long-term to the benefit of both companies as well as patients in Germany."
Mr. Petron continued, "The signing of this Agreement represents a massive early success in our efforts to strengthen our sales channels, and concentrate our efforts on the development and sales of our THC product portfolio. This is just the beginning of the opportunities we see in the region. We expect 2022 to be a pivotal year for PharmaCielo, both in Europe as well as in other focus markets globally, as our sales professionals continue to work with potential customers, to drive results."
Matthias Koeppel, Co-Founder and CEO of Greenstein, commented, "PharmaCielo, with its world leading cultivating and processing facilities in Colombia, is uniquely positioned to supply the German market. We are excited to bring to market their excellent product portfolio through our network. We look forward to building and developing our relationship with PharmaCielo."
Mr. Koeppel continued, "We see this as a first, but confident and strong step in securing high quality, competitively priced THC products for the German market.
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 cultivation and processing center 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.
About Greenstein
Greenstein Germany is an independent pharmaceutical pre-wholesaler specialized in the import and distribution of cannabis flowers, extracts, and APIs to distributors on the European Continent. Greenstein Germany holds a pharmaceutical wholesale license according to §52a German Drug Law (AMG) and a narcotic license authorized by the German Federal Opium Agency (BfArM) according to §3 (BtMG). Greenstein is the exclusive pre-wholesaler to APOCAN GmbH, a joint venture between Greenstein and NOWEDA.
For further information:
Ian Atacan, Chief Financial Officer
+1 416-562-3220
i.atacan@pharmacielo.com
Media and Investor Inquires:
investors@pharmacielo.com
Forward-Looking Statements
This press release contains forward-looking statements. Forward-looking statements can be identified by the use of words such as "expects", "is expected", "intends", "anticipates", "believes", or variations of such words and phrases or state that certain actions, events or results "may" or "will" be taken, occur or be completed or achieved. Forward-looking statements in this news release include, without limitation, statements with respect to: Company expectations that GMP audits will be scheduled by potential customers, the completion of scheduled GMP audits by potential customers, expectations that potential customers that have scheduled or completed audits will become customers of the Company, the success or traction of the Company's sales strategy, collaboration with pharmaceutical companies in their product development cycle and the expectation that such collaboration will result in a competitive advantage to the Company and that the advantage will be sustainable, expectations that the successful completion of audits will grow the Company's sales pipeline or build its reputation as a global supplier of choice, the expected timing of the completion of European Union GMP audit processes, the Company obtaining approvals or licenses related to importing Company products into European Union, and the expectation by the Company that the timing of completion of the European Union GMP certification will not affect sales. The forward-looking statements in this news release are necessarily based on assumptions, including assumptions with respect to: PharmaCielo's ability to execute its business plan as currently contemplated, PharmaCielo's ability to obtain necessary regulatory approvals for the export of its products from Colombia and import of its products into other countries, sufficient demand for the Company's products , that potential customers will be satisfied with the results of audit processes, that any changes to Colombian cannabis legislation will not negatively impact the Company's business, that the Company will be able to locate and retain necessary personnel to achieve its business goals, PharmaCielo's ability to maintain its distribution contracts in good standing 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 changes to PharmaCielo's development plans, the failure to obtain and maintain all necessary regulatory approvals relating to the export of cannabinoid products and the import of these products into other countries, TSXV approval, 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, fluctuation of the market price for the Company's products, risks associated with global economic instability relating to COVID-19, risks related to retention of key Company personnel, 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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