Colombian cannabis companies are now able to export THC and CBD-dried flower. The government's completion of a regulatory checklist will essentially enable such cannabis companies as Flora Growth FLGC and PharmaCielo PCLO PCLOF to export to the United States and numerous other countries. The announcement follows the government's passing of Regulation 227 in February, which was designed to make the country's cannabis industry more competitive globally.
Jason Warnock, Flora's chief commercial officer said that the resolution allows the company to "produce high THC flower, including multiple cannabis strains with THC levels over 20 percent," and "clears the path to export dried CBD flower to markets including the United States where Flora already sells hundreds of CBD products via owned brands like JustCBD, MIND, and Mambe."
Flora maintains low-cost cultivation - approximately 6 cents per gram - on its fully integrated 254-acre licensed cannabis farm, Cosechemos, which boasts onsite cryo-ethanol extraction, advanced drying systems, sterilization, cannabinoid isolation systems as well as advanced onsite testing. The facility is currently capable of producing 600 kg of dried cannabis daily and over 10,000 kg of cannabis derivatives annually under EU-GMP guidelines.
The company can now include shipments of dried cannabis flower with its derivatives exports, including Flora Lab's subsidiaries in Bogota, Colombia and JustCBD in Fort Lauderdale, completing the vertical integration of certain Flora portfolios including its CBD edible, topicals and other infused products.
In March, Flora received its 2022 export quota from the Colombian government, totaling up to 43,600 kg of high-THC cannabis. This happened on the heels of completing its first import of CBD-containing food and beverage products into the United States under its Mambe brand.
"We are grateful for the Colombian government's forward-thinking approach to cannabis regulation and are excited to bring Colombian-made cannabis food and beverage products to the U.S. market," said Luis Merchan, the company's CEO and president, who is one of the speakers at Benzinga's Cannabis Capital Conference, to be held on April 20 and April 21 at the Fontainebleau Miami Beach Hotel in Florida.
Bill Petron, CEO of PharmaCielo, said that the company plans to begin shipping dried flower cannabis in the second quarter of this year, "with volumes growing through the fourth quarter and 2023."
The company is "well-positioned to capture market share in import-dependent markets such as Germany, Israel, and Australia," Petron continued. "Over the past several months, we have strengthened our international sales team, resulting in wins in key markets such as Germany and Eastern Europe and setting the foundation for growth as dried flower is added to our export portfolio."
PharmaCielo recently inked a sales agreement with Greenstein Germany GmbH, an independent pharmaceutical wholesaler specializing in distributing cannabis-based phytopharmaceuticals in Germany. The company intends to start supplying the German market with three THC-dominant products, with commercial shipments expected to begin in late 2022.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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