The shipment of CBD, which is used in health and lifestyle products, was sent to the Swiss headquarters of Creso Pharma (ASX:CPH), an Australia-based cannabis company that PharmaCielo acquired in June.
“PharmaCielo is the first medicinal cannabis company to commercially export cannabis derived isolates from Colombia to Switzerland — the global capital of the pharma industry,” said PharmaCielo CEO David Attard in a press release.
The news comes after the company secured its first commercial exporting permit from the Colombian government last month.
Attard added that the company’s ability to successfully export cannabis products has given it an advantage in the European market.
Cannabis is currently illegal in Switzerland, but products derived from cannabis plants with low tetrahydrocannabinol (THC) levels (less than 1 percent) can be sold legally. In 2012, the possession of 10 grams of cannabis or less was decriminalized and is no longer a criminal infringement; however, it is still punishable by a fine of 100 Swiss francs.
As for medical marijuana, there is only one product — Sativex, generically known as Nabiximols — licensed for sale in the European country. Otherwise, the Federal Office of Public Health (FOPH) can grant special authorization for the medical use of prohibited narcotics, including cannabis.
Medical marijuana in the country may be legalized in the near future though. A proposal from the Swiss government released earlier this year aims to allow prescriptions for cannabis to treat people suffering from cancer and other conditions.
The proposal would replace the existing system, which involves getting an exception from the FOPH; it could further open up Switzerland’s cannabis market.
PharmaCielo’s collaboration with Creso Pharma also involves a multi-country agreement with Uruguay-based Laboratorios Adler, which was announced last week.
As part of the deal, PharmaCielo will supply the Latin American company, a veterinary product producer, with its CBD products and Creso Pharma’s veterinarian CBD products for distribution in Uruguay, Paraguay, Bolivia and Southern Brazil.
As part of PharmaCielo’s results for Q1 2019, the company reported that is in “active negotiations” across multiple markets in South America and the European Union.
According to those results, the company’s operating costs reached C$4.8 million during the period, a drop from C$9.6 million in the same quarter last year.
PharmaCielo also reported a drop in its total net loss, which fell from C$10 million during the same quarter in 2018 to C$7.7 million in Q1 of this year.
The company’s share price has jumped since the announcement, rising to C$5.64 by 10:20 a.m. EDT on Monday; that represents an almost 5 percent increase from Friday’s (August 16) close of C$5.37. As of 3:00 p.m. EDT on Monday, shares of the company were trading at a price of C$5.50.
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Securities Disclosure: I, Danielle Edwards, hold no direct investment interest in any company mentioned in this article.