BOGOTA, Colombia, June 25, 2019 /CNW/ - CannabCo Pharmaceutical Corp. Colombia S.A.S. (CannabCo Colombia), a Colombia based cannabis cultivator and manufacturer of medical cannabis products, is pleased to announce that it has signed an LOI for the provisioning of 7000 kg per annum of non psychoactive (<1% THC), and 5000 kg per annum of psychoactive cannabis oil in a variety of formats. Products would include oil in 30-60 ml bottles of varying concentrations, capsules, and topical creams both in CBD (non psychoactive) and THC/CBD (psychoactive) formats.
The LOI represents the initial production on an annual supply agreement and is estimated in value to be in excess of $70MM USD per annum. Parties intend to increase allocation and supply based on market development in the targeted region.
Production will occur in Colombia at CannabCo's extraction, production and processing facility located 30 minutes outside of the country's capital city of Bogota.
"We are very excited to be part of Colombia's efforts to become the world leader in medical cannabis supply" said Joseph Palumbo, the country general manager. "We have been inundated with supply requests for a market that is grossly underserviced and under-producing currently, and we are looking forward to ramping up to meet the demand over the next few years. We believe that Colombia with its perfect growing climate and dedication to the medical cannabis market will be the primary source of medical cannabis on a global scale."
CannabCo could not be more pleased with the supply agreement or its decision to enter the Colombian cannabis market. "With its near perfect growing conditions for cannabis, abundant and educated low cost labour force, and already established agricultural footprint, Colombia is the perfect place for our cannabis cultivation and product manufacturing efforts" said Joseph.
Currently Colombia has made great strides in setting up the infrastructure to meet the global demand for medical cannabis oil, however even with the enormous strides made by CannabCo and other Colombia operations; it will be many years before production reaches capacity to make a dent in global demand. And with new markets opening up frequently, this supply gap keeps widening. Experts estimate that Colombia may eventually supply a significant percentage of the world's demand for cannabis oil and medical cannabis derivative products, both psychoactive and non-psychoactive (CBD).
About CannabCo Pharmaceutical Corp. Colombia S.A.S.
CannabCo Colombia is a Colombia based full service cannabis company with cultivation projects in multiple regions across the country. The company's primary extraction plant is located 30 minutes outside the capital city of Bogota. The company will process both psychoactive and non-psychoactive cannabis and hemp flower for the production of THC and CBD oil for the medical cannabis market. The Company's state of the art production facilities will have the capability of producing a wide range of end products to meet emerging market supply requirements for Colombia's evolving Cannabis industry, as well as global export. The facility is pursuing EU GMP status allowing access to the underserviced global pharmaceutical market. The company currently has multiple social projects as part of its ethical standards and is committed to the highest quality production of medical grade cannabis products in the industry. The company is vertically integrated controlling all aspects of cultivation, extraction, product manufacturing, and distribution of its medical products allowing it full control over the high quality of its end products. The company intends to be the largest producer and manufacturer of THC/CBD based products on a global scale utilizing Colombia as its operating base.
Forward Looking Statements
This press release may contain certain "forward-looking information" and "forward-looking statements" within the meaning of applicable securities legislation. All information contained herein that is not historical in nature may constitute forward-looking information. Forward-looking statements may be identified by statements containing the words "believes", "anticipates", "plans", "intends", "will", "should", "expects", "continue", "estimate", "forecasts" and other similar expressions. Actual results and developments may differ materially from those contemplated by these statements. Although CannabCo Colombia believes that the expectations reflected in forward-looking statements in this press release are reasonable, there can be no assurance that such statements will prove to be accurate. Future events and results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements in this press release.
SOURCE CannabCo Pharmaceutical Corp. Colombia S.A.S