Canadian-Colombian medical cannabis company PharmaCielo Ltd (TSXV:PCLO) (OTC: PCLOF) is taking a leap across the pond after securing a string of sales and distribution agreements for its medicinal-grade CBD and THC extracts in the European market.
Earlier this week, the company announced a significant sales agreement with XPhyto Therapeutics Corp. (CSE:XPHY), its largest to date.
Per the three-year agreement, PharmaCielo will supply a minimum of 30,000 Kg of medicinal-quality cannabis oils and isolates, including those containing THC, to XPhyto’s EU-GMP certified facility in Germany for further processing and usage in medical cannabis products for the German market.
This agreement comes on the heels of another distribution deal PharmaCielo signed with CBD Export Global for the distribution of CBD isolates and broad-spectrum CBD oils to European wholesalers and CPG product manufacturers. This multi-year, performance-based agreement includes an initial minimum target volume of 2,000 Kg in the first year. The companies can scale it up in subsequent years based on regulatory approvals in each individual European market.
“The distribution and sales agreements we just secured are significant milestones in PharmaCielo’s growth,” David Attard, CEO of PharmaCielo, told Benzinga, as they “turn a page in our business strategy from a large-scale Colombian cultivator and processor into a global supplier of high-grade medicinal CBD and THC extracts.”
“The collaboration with XPhyto and CBD Export Global will provide a critical mass and presence of our high-grade cannabis extracts across Europe for medicinal, therapeutic and wellness purposes,” he said.
“On a broader level, it is also a testament to the pivotal role and potential Colombia can play as a leading exporter of medicinal cannabis extracts.”