The Colombian Government has passed Regulation 227, which aims to make the country's cannabis industry more competitive on a global scale. In July 2021, the Colombian government signed Decree 811 into law. The government's announcement introduces a set of practical regulations implementing the legal provisions of Decree 811 that, among other important advances, will enable PharmaCielo and other producers to begin exporting dried flower and access additional opportunities for CBD-based products. In the coming weeks, the Colombian government is expected to release further technical commercial guidelines.
With the GACP1 designation already in place, and the ability to re-allocate part of its existing 50 tonne quota toward dried flower, PharmaCielo expects that it is well-positioned to begin exporting dried flower during the first half of 2022, with volumes growing through the remainder of the year.
Management commentary
Bill Petron, CEO of PharmaCielo, commented, "The passing of the Regulation 227 is a historic development for the Colombian cannabis industry, opening the large and growing global dried flower market as well as multiple CBD-based opportunities, to Colombian producers. The Colombian government has consistently demonstrated its desire to build this industry into a global leader, and in our opinion the announcement today makes Colombia the most export-friendly and competitive jurisdiction in the world. Dried flower accounts for up to 50% market share in most mature cannabis markets globally, and represents a massive opportunity both for the Colombian industry, and PharmaCielo. With scalable cultivation and processing capacity in place, a structural cost advantage, and the sophistication to ensure consistently high-quality products, PharmaCielo is positioned to capture market share against current international exports from markets like Canada."
Mr. Petron continued, "The government's revised approach to the quota system will both ensure speed to market, as well as greater efficiency throughout the sales process. We expect 2022 to be a very exciting year of growth for PharmaCielo, as we launch and expand dried flower exports, bringing global patients access to high quality, affordable medical cannabis products."
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