News roundup: September 2019

A monthly summary of the key events taking place in the Colombian medicinal cannabis industry

Operations

Medcann first Colombian company to receive government export quota

Medcann Pharma’s Colombian affiliate, medcann Colombia is the first and only company to receive a quota to produce and export psychoactive cannabis (over 1% THC) from the Colombian government. The company currently has 12 registered varieties ready for cultivation and expects to have product available by the end of the year.

Clever Leaves INVIMA GMP certification

Clever Leaves is the first company in Colombia to receive the GMP (Good Manufacturing Practices) certification to produce medical cannabis from INVIMA, the government entity in charge of national drug and food surveillance. This allows it to produce phytotherapeutic medicines which can be prescribed through a medical distribution channel.

PharmaCielo delivers first commercial CBD export

Less than a month after receiving its commercial export permit, PharmaCielo Colombia Holdings SAS, affiliate of PharmaCielo Ltd (TSXV:PCLO, OTC:PHCEF), made its first shipment of CBD isolate to Switzerland-based Creso Pharma. Creso Pharma specializes in nutraceuticals, lifestyle, therapeutic, topical and products derived from cannabis and hemp for human and veterinary use.

View Systems is manufacturing homeopathic cannabis products

Recently-acquired subsidiary of View Systems Inc (OTC:VSYM), Sannabis SAS, has started to manufacture their Cannabis 3D line of homeopathic products. They have ordered packaging for over 10,000 products including gels, nasal sprays, creams, drops and pellets. View Systems has been developing advanced weapons detection systems for over 20 years.

Vinzan International acquires Colombia Dreams Marihuana

Vinzan International, headquartered in Canada, has acquired 51% of Colombia Dreams Marihuana, which will be rebranded as Vinzan Colombia. The company has two growing locations in Guamo-Tolima and Sierra Nevada de Santa Marta, totalling over 18 hectares. Vinzan is a licensed physical trader of cannabis and derivative THC / CBD products worldwide.

Finance and Acquisitions

Blueberries closes oversubscribed private placement

Blueberries Medical Corp (CSE:BBM) closed an oversubscribed, non-brokered private share placement for total gross proceeds of CAD$3,457,500. The company will use the net proceeds to expand its Colombian cultivation and extraction facilities as well as increasing their working capital.

Verdemed announces new USD$9 million financing round

Canada-based Verdemed Holdings Inc intends to raise an additional USD$9 million to expand its medicinal cannabis cultivation activities in Cali, including acquiring a 60% controlling stake in Greenfarma. It is counting on USD$3 million from its current backers, and also plans to expand its Brazilian Verdemed Care platform to Mexico and Colombia.

Market

$557 potential Latin American sales by 2023

A new report from consumer intelligence firm, Brightfield predicts that the potential CBD and medical marijuana sales in Latin America could total USD$557 million by 2023. The report states that given the stigma still associated with marijuana, there is a higher potential for CBD in the short term. In Colombia, it highlights the challenges that high prices may pose to the development of the local industry, as well as the strong export potential and excellent growing climate.