- PharmaCielo has received a purchase order for CBD Isolate as an API, which will be used by a large pharmaceutical company in Brazil (the "Customer"), for final testing.
- The Customer has already qualified PharmaCielo as a supplier of API – the Company expects to begin shipping product on a commercial basis to the Customer by Q4 2023.
TORONTO and RIONEGRO, Colombia , Feb. 8, 2023 /CNW/ - PharmaCielo Ltd. ("PharmaCielo" or the "Company") (TSXV: PCLO) (OTCQX: PCLOF), the Canadian parent of Colombia's premier cultivator and producer of dried flower and medicinal-grade cannabis extracts, PharmaCielo Colombia Holdings S.A.S. ("Holdings"), today announced that it has received a purchase order for CBD Isolate as an API from a large Brazilian pharmaceutical company. The Customer is in the final stages of testing PharmaCielo's API in order to register PharmaCielo as its supplier. The Company anticipates that testing will be complete in Q3 of 2023, with commercial shipments to begin in by Q4 2023.
Bill Petron, CEO of PharmaCielo, said, "With a population of over 210 million people, Brazil is a very important and growing market for PharmaCielo. Today's announcement represents further consolidation of our position in the country. Last week we announced that we had received our first commercial purchase order from Ease Labs Pharma, and in mid-2022 we signed a sales agreement with one of the largest Phyto-therapeutic companies in the Brazilian market. We see significant potential to expand sales volume within each of these relationships, as well as to broaden the scope to include additional APIs, such as broad spectrum, as the market continues to grow. While the equity market environment remains challenging, our team is focused on executing, with consistent and demonstrable progress on revenue, as well as efficiencies, with the objective of accelerating our trajectory toward cash flow positive."
Engagement of ITG as Market Maker
PharmaCielo also announced that subject to regulatory approval, it has engaged the services of Independent Trading Group ("ITG") to provide market-making services in accordance with TSX Venture Exchange ("TSXV") policies. ITG will receive compensation of CAD$7,000 per month for an initial term of three months, and will continue on a month-to-month basis thereafter unless terminated by either party. There are no performance factors contained in the agreement and ITG will not receive shares or options as compensation. ITG and the Company are unrelated and unaffiliated entities and at the time of the agreement, neither ITG nor its principals have an interest, directly or indirectly, in the securities of the Company.
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, pharmaceutical-grade medical cannabis 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.
Forward-Looking Statements
This news 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 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, TSX Venture Exchange 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 or other developments, 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 TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
SOURCE PharmaCielo Ltd.
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