News roundup: January 2020
A monthly summary of the key events taking place in the Colombian medicinal cannabis industry
Plena Global achieved commercial CBD shipments from Colombia to Europe
Plena Global Holdings, a large-scale B2B medicinal cannabis supplier, announced that its Colombian subsidiary has successfully delivered commercial shipments of CBD isolate to licensed pharmaceutical and biotechnology companies in Germany, and sent a customs-cleared delivery to the Netherlands. The company also has further shipments planned, all of which strictly adhere to Good Agricultural and Collection Practices (GACP) and European Good Manufacturing Practices (EU-GMP) standards and procedures. Plena Global is currently engaged in large-scale commercial production for 2020 at its 30-hectare facility in Nemocón.
Avicanna to supply UK market with cannabis products manufactured in Colombia
Avicanna (TSX: AVCN) entered an importation and distribution agreement with Astral Health, operating subsidiary of the LYPHE Group to supply with cannabis medicinal products to patients in the UK under the MHRA “specials” program. The products are expected to be prepared in Colombia using Avicanna’s proprietary formulations, using cannabis extracts from Santa Marta Golden Hemp, and manufactured at the facilities of Altea Farmaceutica following Good Manufacturing Practices protocols.
According to the agreement, Avicanna will supply Astral with cannabis-based medicinal products and both parties will work together to achieve strategic milestones in the UK regarding market access, activation and safety.
Clever Leaves is granted cultivation and exports quota
Colombian licensed producer, Clever Leaves, was awarded a quota to cultivate, extract and commercialize, including export, high-THC medicinal cannabis. The quota is additional to previous quotas granted to Clever Leaves for scientific and research purposes. The company currently holds GACP and BPM (Buenas Practicas de Manufactura) certifications in the production processes of medicinal cannabis.
PharmaCielo approval to export CBD isolate from Colombia to the US
PharmaCielo (TSXV: PCLO, OTCQX: PCLOF) has announced that it has received TSX Venture Exchange approval of the export from Colombia of medicinal- grade CBD isolate that is compliant with the 2018 Farm Bill to a distributor in the United States who had placed an order for up to US$3 million under the Supply Agreement. CEO David Attard said it believes it is the first TSXV listed company to receive approval to export CBD isolate from Colombia to the US market.
Creso Pharma repays CAD$3.9 Million loan to PharmaCielo
PharmaCielo says the repayment of Creso Pharma’s CAD$3.9 million loan means they are well-positioned to capitalize on growth initiatives moving into 2020.
Colombia’sFEDECOREandOneWorld Pharma join forces on Hemp
Colombian cannabis and hemp producer, One World Pharma (OTCQB: OWPC) will partner with FEDECORE – the Colombian Federation of Regional Advisors – to provide seed-to-sale assistance to qualified local populations in Colombia. Ownership of Colcannapy SAS will be split with OWP owning 51% and FEDECORE owning 49%, and the company will work with selected populations across the country to produce high-quality industrial hemp for subsequent international sale.
One World Pharma has also been awarded a civilian honor by the Assembly of the Department of Cauca, for its efforts to invest in, develop and empower the local population in the region.
Sannabis gets INVIMA approval for cosmetic products
Sannabis, the Colombian subsidiary of View Systems (OTC: VSYM) has received INVIMA approval to start producing cosmetic products. The approval is for liquids, solids, oils, lotions, semi-solids, gels, waxes, and powders
Medcann enters JV with Botaniki Lab
Colombian cannabis producer medcann has entered an agreement with Botaniki Lab, a pharmaceutical manufacturer, to supply 600 tons of non-psychoactive dry flower per year. As per the agreement, dry flower supply will take place periodically and Botaniki Lab will be in charge of extraction and commercialization, with a special focus on Latin American and European markets.
Zerenia clinic increases Khiron’s clinical capacity
The opening of Zerenia – a new Bogotá- based medical care clinic – will increase Khiron Life Sciences’ (TSXV: KHRN) clinical capacity by 75%. The 15,000 sq ft facility promises complementary professional medical services in a single, integrated care environment and the company says it will be part of its patient acquisition strategy as it prepares for the issue of cannabis prescription in Colombia.
CB2 Insights announces collaboration with FCM Global to support research and development in Colombia
Canadian company CB2 Insights (CSE: CBII), an evidence-driven data company focused in the cannabis industry, has partnered with fully licensed Colombian producer FCM Global. The partnership aims to create market access and design clinical trials to support the development of future FCM cannabinoid- based products. FCM currently owns and operates a 2.2-hectare facility in La Ceja, Antioquia, as well as a biomass production facility of 474 hectares in Tolima. Both companies are looking to build a foundation for future clinical trials and product innovation in Colombia.
PharmaCielo receives Good Agricultural Practices certification
PharmaCielo, the Canadian parent company of PharmaCielo Colombia Holdings SAS, is the first cultivator to receive Good Agricultural Practices (GAP) Global Certification for its Colombian Medicinal-Cannabis Operations. The certification was issued by Swiss SGS and follows the evaluation of 276 parameters.
Ikänik Farms Obtains GACP Certification for Its Colombian R&D and Agronomic Testing Facility
Pideka SAS, a wholly-owned subsidiary of Ikänik Farms has been issued a Good Agricultural and Collection Practice (GACP) for medicinal plants certification for its Casa Flores R&D and agronomic testing facility. The new certification, will allow Pideka to export non-manufactured pharmaceutical-grade cannabis products to European markets from Casa Flores. The certification was issued by SGS Colombia, SAS.
Blueberries Medical appoints co- founder Camilo Villalba as CEO
Blueberries Medical (CSE: BBM), Latin American licensed producer of medicinal cannabis and cannabis-derived products, has appointed Camilo Villalba as its CEO. Co-founder Villalba moves from his position as COO to take the position. The company expects to make initial exports in the first half of 2020.
Finance and Acquisitions
Khiron Life Sciences reports Q3 financial results
Khiron Life Sciences (TSXV: KHRN) announced its financial results for Q3 of 2019, ending September 30. The company reported USD$47.9 million cash balance, USD$2.8 million in quarterly revenue, recognized from service sales at its ILANS clinics and sales of its cosmeceutical products Kuida. The reported adjusted EBITDA was a loss of USD$5.5 million for Q3 of 2019, USD$1.9 million higher than the previous year Q2, largely due to the growth of the operation, including cultivation and operating costs of USD$1 million. The company is preparing to manufacture and sell its first medical cannabis extracts.
Organto closes sale on Colombian cannabis subsidiary
Organto Foods Inc. (TSXV: OGO) closed the sale of its former Colombian cannabis subsidiary Medicannabis SAS to Xebra Brands. Xebra is a private company focused on the design and distribution of wellness and leisure products, and it is in the process of filing trademarks for cannabis-infused beverages, including soft drinks, energy drinks, iced teas, lemonade and sports drinks. According to the agreement, Organto received 7,124,630 common shares of Xebra, representing approximately 7.44% of the current proforma outstanding shares of Xebra.
Leviathan Cannabis amends property acquisition in Colombia
Leviathan Cannabis Group (CSE: EPIC) has terminated its original lease to own property in Rio Nego, Antioquia, originally announced on September 16. Through its subsidiary LCG Holdings, Leviathan is now purchasing a superior, less expensive property in the same area to cultivate and manufacture hemp. LCG is now acquiring a nine-hectare plot of land in Rio Negro, as well as the infrastructure including office space, workers’ quarter and drying rooms. The company expects to build about 65,000 m2. of greenhouses. The property was purchased for a price of USD$1.114 million, which shall be paid in five installments over 18 months.