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Avicanna's Colombian Subsidiary Gets THC Production Quota, Finalizes Big Commercial Export To Chile

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Avicanna's Colombian Subsidiary Gets THC Production Quota, Finalizes Big Commercial Export To Chile

Avicanna Inc. (TSX:AVCN) (OTCQX: AVCNF) (FSE:0NN) announced late Monday that the Colombian government allowed it to cultivate and process up to 10,267 kg dry flower for exports under a 2021 quota.

Santa Marta Golden Hemp S.A.S., the Colombian subsidiary of the Toronto-based company, can export dried flower in the form of psychoactive (THC) crude and standardized extracts, as well as finished phytotherapeutic pharmaceutical products.

In addition, SMGH can grow up to 1,720 cannabis plants to manufacture seeds from four registered psychoactive varieties for further commercialization.

“I believe that in the context of an emerging industry in its early stages, this is a very important milestone for Latin America, especially in an industry context where expectations are communicated more than results,” Lucas Nosiglia, president of Avicanna LATAM, told Benzinga.

“This is probably the first time that psychoactive cannabis extracts have been exported in a considerable volume to produce commercial batches between two Latin American countries.”

Lucas Nosiglia.

Export To Chile And Ecuador

Separately, the cannabinoid-focused biopharmaceutical company confirmed it has finalized its first commercial export to Chile.

SMGH has exported a total of 20.75 kilograms of high-THC and high-CBD full-spectrum psychoactive cannabis resin, branded as Aureus, under a deal with a homeopathic and naturopathic pharmaceutical company in Chile.

Nosiglia exects that “the case of Chile will be replicated in other countries in the region as we are seeing with Peru, Brazil, Argentina, and Ecuador, which are in the initial stages or in the process of defining regulations and will need to rely on countries like Colombia.

“We are betting on this regional collaboration, and we are seeing more and more interest in cannabinoid therapies from important players in the pharmaceutical industry,” he added.

Over the last year, Avicanna opted for a series of moves to boost its presence in Latin America.

In December, the company agreed to import and distribute its pharmaceutical cannabinoid-based products into Ecuador under a deal with Alliancepharma Technologies.

Separately the company partnered with another Ecuadorian firm, cosmetic distributor Spenta, to distribute its derma-cosmetic product line under the Pura Earth brand.

It took years of  R&D work and navigating the regulatory process of obtaining and using quotas to produce psychoactive extracts to establish Avicanna's presence in Latin America, Nosiglia concluded.

 

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