“Mexican cannabis legalization has had several stops and starts since 2018, but with the recent release of medicinal guidelines and Wednesday night’s vote to continue advancing the Bill, the country looks poised to legalize and become the largest cannabis market in the world, sooner rather than later. Pharmacielo Mexico is positioned to become a preferred B2B supplier in the country, backed by Pharmacielo’s broad extract portfolio, scale and flexibility, and MINO Labs’ long track record of success in the market,” commented Henning von Koss, CEO of Pharmacielo
On March 10, 2021, Mexico’s Chamber of Deputies voted 316 to 129 in favor of advancing a bill that would legalize recreational cannabis use in the country. Additionally, in January, Mexico’s health ministry published a legal framework for the medical cannabis space, including a provision for the import of medicinal extracts and products. With the voting of the Bill, PharmaCielo Mexico plans to immediately initiate the process to obtain an import license for cannabis products.
While the passing of the Bill will undoubtedly assist PharmaCielo in becoming a leading supplier, the Company’s joint venture with Mino Labs has already proven to be beneficial. PharmaCielo and Mino Labs entered into an equity joint venture on January 28, 2019 and founded PharmaCielo Mexico. This marked a key milestone for the Company’s plan to become a leading global exporter for medicinal-grade cannabis oils and derivatives. PharmaCielo’s partnership with Mino Labs provided the Company with a place in the Mexican cannabis market and in doing so, put PharmaCielo in an incredible spot pending the official legalization of recreation cannabis in Mexico.
“For more than 20 years, MINO Labs has been a leader in the Mexican specialty pharmaceutical distribution sector. The interest among our existing customer base for high quality cannabis extracts and value-added formulations has been growing as Mexican cannabis legalization has advanced over the past two years. We expect significant demand when the market opens and are very encouraged by the news that recreational cannabis legalization will continue to move forward, toward the April deadline provided by the Supreme Court,” stated Manuel Cosme Odabachian, CEO of MINO Labs
However, PharmaCielo isn’t just twiddling their thumbs waiting for the Bill to pass. Last month the Company completed their first commercial shipment of THC-free broad-spectrum distillate. The shipment itself was exported to an existing customer with operations in the U.K. and E.U. An earlier shipment of CBD isolate was exported to the same customer in Q4 2020. With their hand in various pots, PharmaCielo has a firm grasp on the cannabis market and shows no signs of slowing down.
Pharmacielo’s stock price opened at $2.33 and currently sits at $2.29.