VANCOUVER, British Columbia, June 25, 2018 (GLOBE NEWSWIRE) -- FloraMed Holdings Inc. (“FloraMed”), a Canadian company, is proud to announce it has received licenses to fabricate and export high-grade medical cannabis CBD and THC extracts to the Colombian domestic and international markets, through its Colombian subsidiary, CannaMed Colombia, S.A.S. (“CannaMed”).
This announcement arrives just a number of days after the formalization of FloraMed’s acquisition of CannaMed, along with CannaMed’s asset portfolio of land and facilities, as well as a pending license for cultivation of medical psychoactive and non-psychoactive cannabis flower. These enterprises will be developed in the heart of one of the largest commercial flower cultivation areas on Earth, on CannaMed’s cultivation farm in Rionegro, Antioquia. The property will also house state-of-the-art production and extraction facilities currently being developed on-site.
The economies of scale, and the low-costs of development and operations in Colombia, provide FloraMed with a competitive advantage that is unmatched in the international Cannabis marketplace, particularly considering the skilled-labor pool available in the nearby-commercial flower cultivars.
FloraMed’s competitors in the Colombian marketplace have stated that medical cannabis flower can be grown for a dramatically lower cost per gram in Colombia, even compared with Canada’s lowest cost producer at $2 per gram,1 as well as compared with cost of production in Uruguay, which is currently projected at 40-cents per gram.2
Furthermore, in Colombia alone, there are an estimated 4.5 million patients nationally, and an additional 60-million in Latin America suffering from conditions such as cancer, multiple sclerosis and epilepsy.3 Scientific studies that prove the effectiveness of cannabis against these diseases have been accepted by governments worldwide, and more recently, by the US Food and Drug Administration.4 Upon a deeper-look at projections for North American demand, considering the recent recreational legalization of cannabis in Canada, as well as the rest of the burgeoning global marketplace, the growth opportunities for companies like FloraMed are considerable.
Clifford Grossman, CEO of FloraMed Holdings, states “We congratulate our CannaMed [Colombia S.A.S.] team on reaching another milestone in our plan of becoming a fully integrated and licensed seed-to-sale cultivator and manufacturer of high-quality medical-grade cannabis products. With the issuance of our fabrication and exportation license, we will produce only the highest quality products using only the best GMP [Good Manufacturing Practices]. Under our parent company, FloraMed Holdings, we will continue our expansion into other sectors of the cannabis industry, both domestically and internationally, through organic growth and aggressive acquisition initiatives.
Terms of the Fabrication and Exportation License
Pursuant to the fabrication license, FloraMed will process low-cost, high-quality CBD and THC medical extracts, supplied from the on-site production of cannabis flower, as well as from supply sources throughout the greater-Colombian cannabis cultivation industry. The extracts produced by FloraMed will be sold to the domestic marketplace, as well as to international markets such as North America, the EU, Asia and more.
About FloraMed Holdings Inc.
FloraMed Holdings, Inc. is a global company, privately held and headquartered in Vancouver, Canada, with a focus on producing and supplying high-quality, medical-grade cannabis extracts and related products. Under its wholly owned subsidiary, CannaMed Colombia, S.A.S., based in Rionegro, Colombia, the Company will own a state-of-the-art cultivation and concentrates-processing facility for cultivation, fabrication, and exportation of high-quality psychoactive (THC) and non-psychoactive (CBD) products.
The board of directors and advisory team of FloraMed is comprised of a talented group of international business executives, specialists with real world experience and from diverse backgrounds of industry expertise. FloraMed is leveraging the tremendous advantages of producing cannabis products in Colombia, with its ideal climate and low costs of production in the medical cannabis industry. The Company, together with its directors and executives, will focus on supplying both the domestic and international marketplace with high quality, medical-grade cannabis derived products.
FloraMed Holdings Website:
www.floramedholdings.com
About CannaMed Colombia S.A.S.
CannaMed Colombia, S.A.S., is a registered Colombian company headquartered at its production facility, located in Rionegro, Colombia. CannaMed owns land for cultivation, facilities, and has applied for all Colombian licenses available for the cultivation, production, fabrication and exportation of cannabis flower and medical-grade derivatives. On May 21, 2018, CannaMed was granted a formal license for fabrication of cannabis extracts and exportation of cannabis products, and has a pending license for non-psychoactive (CBD) and psychoactive (THC) cannabis flower cultivation.
CannaMed Colombia Website:
www.cannamedcolombia.com
General Information Inquiries:
info@floramedholdings.com
Investor Inquiries:
+1.214.680.5000 USA & Canada
+57.300.561.5096 Colombia
Forward Looking Statements
This document contains forward looking statements related to the transaction and business combination between FloraMed Holdings, Inc., and CannaMed Colombia, S.A.S., including statements regarding the benefits of the transaction as well as statements regarding the companies’ products and markets. Forward looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this document, including the following: expected synergies and other financial benefits of the transaction may not be realized; integration of the acquisition post-closing may not occur as anticipated; litigation related to the transaction or limitations or restrictions imposed by regulatory authorities may delay or negatively impact the transaction; unanticipated restructuring costs may be incurred or undisclosed liabilities assumed; attempts to retain key personnel and customers may not succeed; the business combination or the combined company’s products may not be supported by third parties; actions by competitors may negatively impact results, and; there may be negative changes in general economic conditions in the regions or the industries in which FloraMed Holdings, Inc. and CannaMed Colombia, S.A.S. operate. Legal filings may identify and address other important risks and uncertainties that could cause events and results to differ materially from those contained in the forward-looking statements set forth in this document. Readers are cautioned not to put undue reliance on forward-looking statements, and FloraMed Holdings, Inc. and CannaMed Colombia, S.A.S. assume no obligation and do not intend to update these forward-looking statements, whether as a result of new information, future events or otherwise.
1 Aphria, Inc. 2018: Aphria strengthens portfolio with acquisition of leading West Coast producer Broken Coast (link)
2 Herb, 2018: Uruguay Pharmacies Are Now Selling Weed For a Mind-blowing $1.30 Per Gram (link)
3 Reuters, May 2018: Colombia sees billion-dollar bonanza from legacy of marijuana trade (link)
4 Fortune, April 2018: FDA Panel Unanimously Supports Marijuana-Based Epilepsy Drug (link)