VANCOUVER, Jan. 16, 2019 /CNW/ - Organto Foods Inc.
(TSX-V: OGO, OTC: OGOFF) ('Organto"). Organto today
announced that the Organto Global Cannabis Group, through its
wholly-owned subsidiary, Medicannabis S.A.S., has been granted a
license from Colombia's Ministry
of Justice to cultivate non-psychoactive cannabis (CBD) at its
cultivation and breeding facility in Guasca, Cundinamarca,
Colombia. The license authorizes the cultivation of
non-psychoactive cannabis in Colombia for medicinal use and further
processing into cannabis products, including but not limited to,
oils, tinctures, beverages, topicals and other products. It also
allows for grain and seed production and for scientific
purposes.
"We are thrilled to receive this license as was anticipated, and
as a result we now have the ability to advance the breeding and
seed production of high-CBD cannabis cultivars adapted for
equatorial climates." commented Todd
Dalotto, President of the Organto Global Cannabis
Group. "The granting of this license is a key first step as
we establish our low-cost, ecologically designed growing and
processing facilities and build out our commercial operations using
cultivars developed from our diverse seed library."
Organto acquired 100% of Medicannabis, a late stage applicant
for licenses to enable it to cultivate and process medicinal
cannabis in Colombia, in November
2018. The acquisition was part of Organto's strategy to build
out a global cannabis group using cost-effective M&A
strategies. The acquisition of a late stage applicant came
with certain uncertainties and risks, many of which have now been
mitigated with the grant of this license, supporting Organto's
cost-effective approach to the
transaction.
PLANS FOR 2019
The Organto Global Cannabis Group has
applied for three other license types and cultivar registrations in
Colombia, and these are expected
to follow this grant. Once received, these will permit the
company to manufacture and export derivatives (of both psychoactive
(THC) and non-psychoactive (CBD) cannabis), cultivate psychoactive
cannabis, and grow cultivars for commercial use.
The Group plans to have its ecologically-designed cultivation
facility operational in Q3-2019 for planting of non-psychoactive
(CBD) cannabis seeds and breeding trials late in the summer of
2019. Under the proposed timeline, the first harvest would be
expected to occur in late 2019, early 2020, for initial commercial
sales in Q1 2020.
Organto intends to provide further operational and
organizational updates as expected expansion plans are finalized
and the Global Cannabis leadership and advisory team is
expanded.
ON BEHALF OF THE BOARD
Steve Bromley
Chair and
Interim Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this news release.
ABOUT ORGANTO
Organto's business model is rooted in its commitment to
sustainable business practices focused on environmental
responsibility and a commitment to the communities where it
operates, its people and its shareholders. Organto is
comprised of two independent business units, i) the Organto Foods
Group, and ii) the Organto Global Cannabis Group. The Organto Foods
Group is an integrated provider of year-round value-added branded
organic vegetables and seasonal organic and non-GMO fruit and
vegetable products using an asset-light business model to serve a
growing socially responsible and health conscious consumer around
the globe. The Organto Global Cannabis Group is focused on the
growing market for medicinal cannabis around the world, with
initial efforts focussed on key regions of Latin America, utilizing low-cost natural
growing operations and a diverse and exclusive IP seed library to
deliver the medicinal properties consumers expect.
FORWARD LOOKING STATEMENTS
This news release may include certain forward-looking
information and statements, as defined by law including without
limitation Canadian securities laws and the "safe harbor"
provisions of the US Private Securities Litigation Reform Act of
1995 ("forward-looking statements"). In particular, and without
limitation, this news release contains forward-looking statements
respecting Organto's current business model and related expertise;
Organto's belief that the granting of the license to cultivate
non-psychoactive cannabis is a key first step as the company
establishes low-cost, ecologically designed growing and processing
facilities; Organto's belief that this license will allow the
company to advance the breeding and seed production of high-CBD
cultivars adapted for equatorial climates; belief that this
addresses certain risks and uncertainties associated with an early
stage applicant; management's beliefs, assumptions and
expectations; and general business and economic conditions.
Forward-looking statements are based on a number of assumptions
that are subject to a variety of risks and uncertainties and may
prove to be incorrect, including without limitation assumptions
about the following: the continued growth in global demand for
cannabis products and the continued increase in jurisdictions
legalizing cannabis, and the timely processing of regulatory
approval for the acquisition of Medicannabis and the license
applications. The foregoing list is not exhaustive and Organto
undertakes no obligation to update any of the foregoing except as
required by law.
SOURCE Organto Foods Inc.
