PharmaCielo Enters Strategic Alliance to Provide Pre-Tested and Insured Product to Customers in the U.S. Market
- Alliance with AssuredTrans Inc. will enable PharmaCielo to provide up-front independent laboratory analysis and insurance of its recently expanded product portfolio to potential customers in the U.S., beginning in 2021
- Former congressman notes alliance enables U.S. customers to have confidence in the purity and quality of PharmaCielo's products
TORONTO, ON and CORAL SPRINGS, Fla., Dec. 11, 2020 /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., announced that it has entered into a strategic alliance with U.S.-based AssuredTrans Inc. ("AssuredTrans"), an independent provider of cannabinoid extract testing, verification and insurance.
The alliance between AssuredTrans and PharmaCielo provides U.S. CBD buyers a value proposition that guarantees independent product quality assurance, reduced supply chain costs and customized product specifications for multiple manufacturing needs.
"At AssuredTrans, the success of our business is based on our ability to validate and verify the specifications and quality of third-party products and provide product insurance to bulk purchasers in the rapidly emerging CBD extract marketplace," said Jeremy Applen, COO of AssuredTrans. "Given the product quality we have already seen from PharmaCielo and its capability to continue producing at the specifications in demand from global buyers, we are excited to align our companies to meet the needs of U.S. customers. The market is expanding every day, and we are confident that our solution, matched with PharmaCielo's extensive product range, will enable us to develop meaningful relationships with established product manufacturers as they look to add CBD to their product ranges."
AssuredTrans's patent pending ecosystem ensures and insures both product and material specifications, protecting both the manufacturer and the supplier, a very unique solution in the current market. This proprietary system mitigates the financial and material risk associated with purchasing raw ingredients such as CBD extracts, giving large manufacturers the peace of mind and ability to produce at scale. AssuredTrans is partnered with a leading international specialist insurance provider, an 800-laboratory testing service and customer-directed audit provision via an established logistic audit and certification firm with global offices in over 70 countries, including Colombia.
"In speaking with customers and prospects around the world and most recently in the U.S., including large established health product manufacturers, there is a growing need to provide independent laboratory analysis in confirmation of product quality," said Henning von Koss, CEO of PharmaCielo Ltd. "Through this alliance, we now have the ability to offer independent product verification, customized guaranteed specification and insurance to U.S. bulk purchasers of our extracts. Providing these key items up front gives potential customers immediate confidence in our product quality as well as financial assurance as they look to enter into sales agreements with PharmaCielo."
"It is important to keep in mind that despite the enormous progress that has been made, the medicinal cannabis industry is still in its formative stage. There is now an impressive level of public acceptance of the medical and health-related benefits that can be derived from the cannabis plant, but this opportunity must not be taken for granted," said former Congressman Dana Rohrabacher. "By adhering to the highest global standards and enabling third-party validation of its products, PharmaCielo is facilitating the development of public trust in this new industry and fostering an even greater understanding of this new and effective way to combat pain and inflammation, among other health issues. By demonstrating a serious commitment to the growth and long-term success of a global cannabis market, PharmaCielo is slamming the door on the industry's past and leading it into a new era of professional management of the production, processing and commercialization of this exciting new health related product."
As PharmaCielo recently announced a significant expansion of its extract product range, the provision of independent laboratory analysis and insurance of its products will be available to support U.S. market entries beginning in 2021 and beyond. Individual product profiles and pricing, as well as referrals to the independent AssuredTrans Inc. services, are available through [email protected].
The export of PharmaCielo products into the United States is subject to the approval of the TSX Venture Exchange (the "TSXV").
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 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 AssuredTrans Inc.
AssuredTrans provides Consumer Packaged Goods (CPG) and Industrial companies the confidence to enter into global production using CBD material. AssuredTrans has developed a unique ecosystem which ensures and guarantees product and material specifications. To build a global ecosystem, AssuredTrans has partnered with global leaders that are experts in their respective fields; a global food, pharma and materials testing laboratory, a global audit and certification organization servicing over 70 countries, and a global insurance organization specializing in specialty insurance products. By utilizing this ecosystem, AssuredTrans eliminates the current financial costs and material risks associated with purchasing non-specified or non-guaranteed CBD-derived products. This provides confidence to large global manufacturers to enter the CBD-derived economy and produce at scale and shorten suppliers' sales cycles through producing to AssuredTrans specifications.
Forward-Looking Statements
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 potential benefits of the strategic alliance between PharmaCielo and AssuredTrans on PharmaCielo's business; PharmaCielo's expected production capacity; PharmaCielo's ability to export CBD into the US; the expansion of the CBD extract marketplace; the effect that the strategic alliance between PharmaCielo and AssuredTrans will have on public trust in the medicinal cannabis industry; the expected timing of independent analysis of and insurance on PharmaCielo's products being made available.The forward-looking statements in this news release are necessarily based on assumptions, including, without limitation, assumptions with respect to: PharmaCielo's ability to execute its business plan as currently contemplated; PharmaCielo's ability to obtain and maintain all necessary regulatory approvals for the export of its products into the United States, including approval of the TSXV; PharmaCielo's ability to retain AssuredTrans to provide services in respect of its products on favourable terms; the reaction of cannabis market participants to the testing, verification and insurance services provided by AssuredTrans; and AssuredTrans' continued operation described in this press release. 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; the failure to obtain and maintain all necessary regulatory approvals relating to the export of cannabinoid products, including approval of the TSXV; the inability to export or distribute commercial products through sales channels as anticipated due to economic or operational circumstances; AssuredTrans ceasing to provide the services described in this press release to PharmaCielo; risks associated with operating in Colombia; 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.
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.
SOURCE PharmaCielo Ltd.
David Gordon, Chief Corporate Officer, +1.416.864.6116, [email protected], PharmaCielo.com; Media Relations: International: Gal Wilder, Cohn & Wolfe, +1.647.259.3261, [email protected]; Colombia: Giselle Díaz Bermúdez, SPR Group, + 57 310.859.5468, [email protected]; Investor Inquiries: [email protected]
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