Mexico Votes to Advance Recreational Cannabis Legalization – PharmaCielo Mexico Positioned to Become a Preferred Supplier
- On March 10 th , Mexico’s Chamber of Deputies voted 316 to 129 to advance a bill that would legalize recreational cannabis use in the country.
- With a population of more than 125 million people 1 and a potential market value of USD$3.2 billion 2 , Mexico is set to become the largest legal cannabis market in the world.
- PharmaCielo Mexico is well-positioned to be a supplier of choice; PharmaCielo on track to receive Mexican GMP 3 certification during Q2’21.
TORONTO and RIONEGRO, Colombia , March 12, 2021 /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., today provided an update on its operations in Mexico , in light of the country’s continued advancement of legislation to legalize the use of recreational cannabis in the country. On March 10 th , Mexico’s Chamber of Deputies voted 316 to 129 to advance a bill that would legalize recreational cannabis use in the country (the “Bill”). This follows the move by Mexico’s health ministry in January, to publish a much-anticipated legal framework for the medical cannabis space, including a provision for the import of medicinal extracts and products. Through PharmaCielo S.A. de C.V. (“PharmaCielo Mexico”), a joint venture with MINO Labs S.A. de C.V. (“MINO Labs”), a specialty pharmaceutical company and medical supply distributor based in Mexico , the Company is well-positioned to become a preferred supplier in the country.
Henning von Koss , CEO of PharmaCielo Ltd. , commented, “Mexican cannabis legalization has had several stops and starts since 2018, but with the recent release of medicinal guidelines and Wednesday night’s vote to continue advancing the Bill, the country looks poised to legalize and become the largest cannabis market in the world, sooner rather than later. PharmaCielo Mexico is positioned to become a preferred B2B supplier in the country, backed by PharmaCielo’s broad extract portfolio, scale and flexibility, and MINO Labs’ long track record of success in the market.”
Manuel Cosme Odabachian , CEO of MINO Labs , added, “For more than 20 years, MINO Labs has been a leader in the Mexican specialty pharmaceutical distribution sector. The interest among our existing customer base for high quality cannabis extracts and value-added formulations has been growing as Mexican cannabis legalization has advanced over the past two years. We expect significant demand when the market opens and are very encouraged by the news that recreational cannabis legalization will continue to move forward, toward the April deadline provided by the Supreme Court.”
PharmaCielo Mexico was established in 2019 to bring PharmaCielo’s high-quality cannabis extracts and derivative products to the Mexican market, leveraging MINO Labs’ extensive experience and broad presence in the country’s pharmaceutical space. Following a Colombian site visit by MINO Labs in February 2021 , PharmaCielo has submitted a request to initiate the Mexican GMP audit process, which the Company expects to be complete by the end of Q2’21, depending on the Mexican Authorities’ availability. With the voting of the Bill, PharmaCielo Mexico will immediately initiate the process to obtain an import license for cannabis products in Mexico . PharmaCielo is currently producing extracts in compliance with EU-GMP guidelines.
Distribution of cannabis products by PharmaCielo in Mexico will be subject to the approval of the TSX Venture Exchange (the “TSXV”).
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 centre 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 MINO Labs
Mino Labs S.A. de C.V. is a specialty pharmaceutical company and medical supply distributor based in Mexico with more than 20 years of experience. The company has distribution, warehousing and commercialization facilities throughout the Mexican territory supplying strategic chain, independent and retail drugstores as well as government-sector institutions with pharmaceutical, biological and OTC products. MINO has a fully operational license and a state-of-the-art 64,500-feet 2 warehouse in compliance with appropriate infrastructure requirements and licences for pharmaceutical products.
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.
This press release contains forward-looking statements. Forward-looking statements can be identified by the use of words such as, “expects”, “is expected”, “intends”, “believes”, or variations of such words and phrases or state that certain actions, events or results “may” or “will” be taken, occur or be achieved. Forward-looking statements in this news release include, without limitation, statements with respect to: the anticipated size of the Mexican legal cannabis market; expectations regarding the positioning that PharmaCielo will have in the Mexican legal cannabis market; expectations related to the timing of PharmaCielo obtaining Mexican GMP certification; future demand in the Mexican legal cannabis market; PharmaCielo’s ability to obtain all regulatory approvals and licenses required to sell its products in Mexico . 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, but not limited to: changes to PharmaCielo’s development plans; PharmaCielo’s failure to obtain Mexican GMP certification in accordance with anticipated timelines or at all; PharmaCielo’s failure to obtain and maintain all necessary regulatory approvals relating to the sale and export of cannabinoid products, including approval of the TSXV; PharmaCielo’s inability to export or distribute commercial products through sales channels as anticipated due to economic or operational circumstances; unforeseen regulatory developments in the jurisdictions in which PharmaCielo operations, including, without limitation, Colombia and Mexico ; risks associated with global economic instability relating to COVID-19; 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. Forward-looking statements in this press release are made as of the date of this press release. 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.
1 The World Bank – 2019
2 New Frontier Data – 2021
3 Good Manufacturing Practices
SOURCE PharmaCielo Ltd.
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