- PharmaCielo is actively working with, and has recently
shipped product to, established companies in Argentina, Brazil, Colombia and Paraguay.
- The Company's sales and technical teams are providing
support to these customers as they conduct testing and advance
product registrations using PharmaCielo APIsi, to
market.
TORONTO
and RIONEGRO, Colombia, Feb. 4,
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 provided investors with an
update on its Latin American sales progress and its non-brokered
private placement of debenture units.
Management Commentary
Bill Petron, CEO of
PharmaCielo, commented, "The pharmaceutical industry represents
one of the largest long-term opportunities for APIi
suppliers, as the sophisticated players in this global industry
begin to develop cannabinoid-based products over the next several
years. At the same time, there are very few organizations worldwide
with the professionalism, scale and product development expertise
to meet the needs of this sector, and even fewer in Latin America. PharmaCielo has all the
necessary capabilities in place to become a valued long-term
partner to these organizations, and, we have made Latin America's vibrant pharmaceutical and
wellness sector a core area for investment."
Mr. Petron continued, "The pharmaceutical sales
cycle is long-tail by nature. Over the long-term, as new products
come online, they also tend to exhibit highly profitable, recurring
revenue streams. It is our strong belief that suppliers who are
involved in the product development and registration process early,
will be winners as this massive market develops. We expect revenue
from these initial relationships to add to PharmaCielo's top line
in the short-term, to augment other focus areas of our business
such as high THC dried flower and THC distillates. However the real
benefit will be longer term, as PharmaCielo maintains a poll
position as this industry continues to develop."
Argentina
PharmaCielo is currently working with a pharmaceutical company
in Argentina that has over 80
years of history in the country (the "Argentina Customer"). This
Argentina Customer is currently in the process of introducing two
products in the domestic market: one is an antiepileptic agent
indicated for the treatment of seizures associated with
Lennox-Gastaut syndrome ("LGS") or Dravet syndrome ("DS") in
patients over two years old. This would be the first medicinal
cannabis product produced in Argentina. The second product is a topical
cream with cannabidiol. The Company has already shipped a
commercial quantity of CBD isolate to this customer and will
continue shipping product through the remainder of the year, to
assist with product development. Ahead of the Argentina Customer's
product launch, PharmaCielo is in the process of negotiating a
multi-year sales agreement to support expected volumes.
Brazil
PharmaCielo is actively working with an established
Phytotherapeutic company in the Brazilian market (the "Brazilian
Customer"). The Brazilian Customer is working toward the
registration of a product with the Brazilian Health Regulatory
Agency ("ANVISA") for sale in the domestic market. PharmaCielo has
sent multiple shipments of APIs to the Brazilian Customer, to
support this process and expects to formalize a sales agreement
once the product is approved and launched.
Brazil is becoming one of the
fastest growing cannabis markets in the region, with approximately
20,000 patients (up from approximately 5,000 patients two years
ago). Currently there are more than 10 ANVISA-approved products in
various stages of commercialization.
Colombia
PharmaCielo has been actively working with a Colombia-based global technology and
healthcare company (the "Colombian Customer"), to utilize the
Company's APIs in one well-established, registered product, and in
the development of others. The Colombian Customer is also one of
the largest pharmaceutical contract development and manufacturing
organizations in Latin
America.
Paraguay
In Paraguay, the Company is
working with a pharmaceutical company that actively performs
contract research & development for some of the largest
pharmaceutical players globally. The Company has shipped small
initial quantities of high THC product to this customer, to support
its R&D efforts.
Issuance of Debenture Units
As announced on December 31, 2021,
the Company has completed the issuance of $5,000,000 principal amount of its debenture
units ("Units") via a non-brokered private placement. The Company
is in ongoing discussions with specific parties and expects to
close the issuance of up to an additional $10,000,000 principal amount of Units on or
before March 4, 2022.
Each Unit consists of $1,000
principal amount of 11% secured debentures ("Debentures") and 250
non-transferable common share purchase warrants ("Debenture
Warrants"). Each Debenture Warrant entitles the holder to acquire
one common share of the Company (each a "Common Share") at an
exercise price of $1.44 per Common
Share until December 24, 2024
(subject to customary anti-dilution adjustments). The Debentures
bear interest at a rate of 11% per annum, mature on December 24, 2024, and are guaranteed by the
Holdings. The Holdings' guarantee of the Debentures will be secured
by mortgages on the real property of the Company and its
subsidiaries. Interest payable on the Debentures may be paid by the
Company in Common Shares at the Company's option, subject to
approval of the TSX Venture Exchange.
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.
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 in this
news release include, without limitation, statements regarding the
issuance of the Units, including the terms thereof and the closing
date therefor.
The forward-looking statements in this news release are
necessarily based on assumptions, including assumptions with
respect to PharmaCielo's ability to obtain necessary approvals for
the issuance of the Units.
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.
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i Active
Pharmaceutical Ingredients
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SOURCE PharmaCielo Ltd.