PharmaCielo Ltd., the Canadian parent of Colombia’s premier cultivator and producer of dried flower and medicinal-grade cannabis extracts, PharmaCielo Colombia Holdings S.A.S., today commented on the recent decision by the Colombian Ministries of Health, Justice, and Agriculture (the “Ministries”) to extend the timeframe within which THC products may be sold. The Ministries have passed a resolution allowing producers up to 48 months to sell these products following their production, compared to the original 24 months (the “Resolution”). This Resolution is of immediate benefit to the industry and to PharmaCielo. As the country’s largest cannabis producer, PharmaCielo has over 2.0 tonnes of THC extract in inventory to support expected growth in international sales in the following years, which would have been subject to destruction under the legacy framework.
Management Commentary
Marc Lustig, Chairman and CEO of PharmaCielo, commented, “On behalf of PharmaCielo, I would like to thank the Colombian government for its commitment to fair regulation that enables the safe and efficient operation of the domestic cannabis industry, along with its competitiveness on a global scale. This resolution will enable the retention of high-quality THC extracts in inventory both now and longer term, to ensure we can quickly fulfill demand as our international customer base continues to grow.”
Shares for Settlement of Certain Amounts Owing
Today, the Company also announced that it intends to issue, subject to the approval of TSXV, up to 2,079,152 common shares of the Company (“Settlement Shares”), in satisfaction of an aggregate of up to $457,415 debt owed to certain former service providers and employees of the Company. The deemed price of the common shares to be issued have been approved by TSXV to be C$0.22, being the higher of the price of common shares at market close, or 10-day Volume Weighted Average Price on the date the board of directors of the Corporation approved issuance of shares, (the “Deemed Price”). The Settlement Shares will be subject to a four-month hold period under applicable Canadian securities laws, starting from the date of issuance of the Settlement Shares.
About PharmaCielo
PharmaCielo Ltd. 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.
