PharmaCielo Becomes First Cultivator Awarded Good Agricultural Practices (GAP) Global Certification for Colombian Medicinal-Cannabis Operations

PharmaCielo is the first cannabis cultivator evaluated by Swiss-founded SGS to meet international certification standards

Good Agricultural Practices (GAP) certification testament to safe and sustainable cultivation practices; supportive of Good Manufacturing Practices (GMP) designation continuum and international market sales

GAP skill set evidenced by cultivar registration of additional 10 unique strains; total of 30 unique and proprietary strains now registered for commercial use

TORONTO and RIONEGRO, Colombia, Jan. 20, 2020 /CNW/ - PharmaCielo Ltd. ("PharmaCielo" or the "Company") (TSXV: PCLO, OTCQX: PCLOF), the Canadian parent of Colombia's premier cultivator and producer of medicinal-grade cannabis extracts, PharmaCielo Colombia Holdings S.A.S., is pleased to announce that the Company has received the global Good Agricultural Practices (GAP) certification for its propagation, flowering and medical cannabis production operations in Colombia.

"The GAP certification attests our commitment and best practices that we deploy in the production of the highest-quality medicinal-cannabis extracts while adhering to the most stringent international safety, environmental and regulatory standards," said David Attard, CEO at PharmaCielo Ltd. "Receipt of Certificate #001, which is the first granted in the cannabis industry, is an important step and provides PharmaCielo with a competitive advantage in supporting export opportunities for our high-quality medicinal-grade extracts into international markets where such accreditation is required."

The GAP certification awarded to PharmaCielo followed a rigorous evaluation of 276 parameters to ensure full compliance with the global standard. The evaluation took a full year to complete and included monitoring and evaluation of the Company's processes from planting to post-harvest operations. The certification process also included assessment of complementing aspects such as obtaining plant material and measuring environmental impact, integrated pest and disease management (MIPE), standardized sanitation, operating procedures and use of phytosanitary products. The GAP standard also evaluates key workplace components of staff hiring practices and welfare as well as workplace hygiene and safety.

Certification was issued by SGS, one of the world's leading inspection, verification, testing and certification companies. Good Agricultural Practices codes, standards and regulations are guidelines which have been developed in recent years by the food industry, producers' organizations, governments and NGOs, aiming to codify agricultural practices at farm level for a range of commodities.

"We are very proud of this accomplishment, which is in addition to the ISO 9001:2015 certification PharmaCielo received last year, and would like to thank our employees for their relentless efforts over the past year," said Andres Felipe Botero, Chief Operations Officer with PharmaCielo Colombia Holdings S.A.S. "Being the first Colombian cannabis producer to be awarded a GAP certification is a testament to the dedication, commitment and professionalism of our entire staff in bringing to the market the purest of medical cannabis derivatives."

"We are very pleased to be able to confirm that globally, PharmaCielo is the first cannabis producer to demonstrate the ability to meet the necessary standards for GAP certification by SGS. We look forward to continuing to work with them to ensure that they meet the standards required for Good Manufacturing Processes (GMP) certification for the Company's Processing and Extraction Centre (PEC)," said Ivan Dominguez Villamil Managing Director of SGS Colombia. "The GAP certification is supportive of both the GMP and European GMP certification methodology, which ensures consistent production of high-quality, safe products and total traceability on a global basis."

In addition to completion of the GAP certification, PharmaCielo has also announced it received approval for the listing of 10 new proprietary and unique tetrahydrocannabinol- (THC) and cannabidiol-dominant (CBD) cultivars with the national cultivar registry. With these 10 new strains, the company holds 30 registered cultivars that are available for commercial cultivation.

About PharmaCielo

PharmaCielo Ltd. (TSXV: PCLO, OTCQX: PCLOF) is a global company, headquartered in Canada, with a focus on ethical and sustainable processing and supplying of all natural, medicinal-grade cannabis oil extracts and related products to large channel distributors. PharmaCielo's principal (and wholly owned) subsidiary is PharmaCielo Colombia Holdings S.A.S., headquartered at its nursery and propagation centre located in Rionegro, Colombia.

The boards of directors and executive teams of both PharmaCielo and PharmaCielo Colombia Holdings are comprised of a diversely talented group of international business executives and specialists with relevant and varied expertise. PharmaCielo recognized the significant role that Colombia's ideal location will play in building a sustainable business in the medical cannabis industry, and the Company, together with its directors and executives, is executing on a business plan focused on supplying the international marketplace.

About SGS

SGS is the world's leading inspection, verification, testing and certification company. SGS is recognized as the global benchmark for quality and integrity. With more than 94,000 employees, SGS operates a network of over 2,600 offices and laboratories around the world.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this press release.

Forward-Looking Statements

This press release contains forward-looking statements. Forward-looking statements can be identified by the use of words such as, "expects", "is expected", "intends", "believes", or variations of such words and phrases or state that certain actions, events or results "may" or "will" be taken, occur or be achieved. Forward-looking statements include statements with respect to an increase in the global medicinal demand for CBD cannabis, the expected commercialization of PharmaCielo's 30 registered asset strains, the ability of PharmaCielo to fulfill global demand for pure CBD medicinal-cannabis oil extracts, and the completion of PharmaCielo's GMP certification for its PEC. Forward-looking statements are based on assumptions, including with respect to PharmaCielo's planned products, and the ability to execute its business plan that management believes are reasonable in the circumstances, but the actual results, performance or achievements of PharmaCielo's business may be materially different from any future results, performance or achievements expressed or implied by any forward-looking statements. Forward-looking statements can be affected by known and unknown risks, uncertainties and other factors, including, but not limited to, the equity markets generally, risks associated with early stage companies, risks associated with the regulation of cannabis and cannabinoid derivatives, failure to obtain necessary TSXV approval, competition for PharmaCielo's planned products, risks associated with operating in Colombia, and currency exchange risk. Accordingly, readers should not place undue reliance on forward-looking statements.

Except as required by law, PharmaCielo undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

SOURCE PharmaCielo Ltd.