This month Pure Harvest Cannabis Producers Inc., a sustainable-focused cannabis company based in Santa Monica, California announced an LOI to begin operations in Colombia with The Pocket Shot Company (OTC:PCKK), a Colorado-based portable beverage company which merged with Pure Harvest in January.
Pure Harvest and The Pocket Shot’s CEO, David Lamadrid stated that the company is very excited to work with partners in Colombia and, “It is an extraordinary opportunity for the Pure Harvest Cannabis Group to participate in the growth of Colombia by way of the production and export of specialty cannabis oils, extracts and terpenes for the Americas.”
A cross-industry merger
Pure Harvest Cannabis Producers Inc. merged with The Pocket Shot Company, a ten-year-old company, in January 2019.
The deal allows the beverage company to break into a new market and gives Pure Harvest a multi-state market. Also contained in the merger agreement is the announcement that Sterling Scott, a cannabis investor, and entrepreneur, accepted a position on the board of directors and David Lamadrid, former president of Cannabis Life Sciences (OTCQB:CLSH) (CSE:CLSH.U), would take over as CEO from the founder of Pocket Shot, Jerry Bachman.
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Bachman will continue to run the beverage side of the business with the intent to add CBD infused beverages to its line. Lamadrid will expand Pure Harvest’s cannabis ventures with the goal to build Pure Harvest into a science-based, vertically integrated, multi-country firm.
Joint-venture in Colombia
Under the leadership of Lamadrid, Pure Harvest announced a new LOI with “a newly formed wholly owned subsidiary Pure Harvest Colombia Partners, Ltd, a Canadian corporation.”
The joint-venture, which is split 50/50 between Pure Harvest and Pure Harvest Colombia has been granted a 200-hectare plot, with permission to expand to 1,800 hectares, and permission to build cannabis processing facilities at cGMP standards. The location of the site has yet to be announced.
By using cGMP standards, Pure Harvest will be able to register their products genetics with the Colombian government, which is an accomplishment PharmaCielo (TSXV:PCLO) (CVE:PCLO) already enjoys as the first recipient of proprietary genetic registration from Colombia. The medicinal grade CBD that comes from these certifications will be able to be exported to other Latin American countries who have yet to deregulate CBD extraction.
“We are grateful that our partners have the deep roots in Colombia to masterfully support this Joint Venture,” Lamadrid stated in the announcement.
Colombia’s significance in the expanding market
Colombia seeks global recognition for their legal, medicinal grade cannabis. It is a country with a long history a part of the illegal drug trade and the government seeks to capitalize on Colombia’s cannabis reputation to bring in investors and prominence for its location and products.
The country’s location, with the equator bisecting the southern half, creates perfect growing conditions for cannabis cultivators, all year round.
In addition to the exceptional climate, investors seek the low prices offered by the Colombian government. Lamadrid lauded the country as being a location to, “establish the low-cost medical grade supply chain of cannabinoids that our business requires.”
Companies such as Khiron Life Sciences Corp. (OTCQB:KHRNF) (TSXV:KHRN) and PharmaCielo have already begun developing the Colombian market.
The LOI signed between Pure Harvest and Pure Harvest Colombia is non-binding with no current announcements of when the deal with be finalized.