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Saturday, May 21, 2022
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

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Allied Corp. exports Colombia-grown dried flower to Australia and US

The company announced the commercial agreements last year

Kelowna-based Allied Corp. exports Colombia-grown dried flower to Australia and U.S.
Allied has its main production center in Colombia. Photo via Allied Corp.

Multinational cannabis producer Allied Corp. (OTCQB:ALID) has started exporting its Colombia-grown dried flower after the country approved regulations on cannabis commercialization.

On Thursday, the Kelowna-headquartered company with primary operations in Colombia said it has started shipping dried flower to Australia and the United States in three different commercial agreements.

The first commercial export involves a shipment of 1,000 kilograms to Australia and two shipments of 1,000 and 500 kilograms to the U.S.

In September last year, Allied announced it submitted its first import permit application to the Australian Department of Health to import 1,000 kilograms of Colombia-grown dried flower. The application took four months to get approved.

A second agreement was announced in October and involves a monthly supply agreement with an unnamed U.S.-based operator to supply a shipment of 1,000 kilograms of dried flower.  The deal was set to start once Colombia released the regulations for commercial exports.

The third agreement –also dependant on regulation updates– was announced in November and involves supplying a monthly shipment of 2,000 kilograms of CBD flower for the Veterans For Healing Global CBD cigarettes. The company has sent an initial shipment of 500 kilograms so far.

On April 1, the government of Colombia approved the commercial regulations for the export of dried flower which prompted many cannabis operators in the country to start planning international exports.

Read more:  Allied Corp. to send €1M of cannabis to Australian partner

“1000 kilograms of vacuum-sealed packaged cannabis flower is quite the sight to see. We couldn’t be more proud of this monumental achievement. It has taken years of relationship building, international negotiations and precise production knowledge to pull this off,” Allied Corp. CEO Calum Hughes said.

Hughes says that scaling production to meet the requested volumes is not easy with the stringent quality assurance limits for international standards needing to be met.

“Allied’s disease and pest management program, anti-microbial, heavy metal and anti-mold and yeast program have all led us to this success. As we continue to service the contracts that we have in hand we only expect our monthly volumes to continue to grow,” he added.

Read more: Colombia releases awaited guidelines for cannabis commercialization

Read more: Colombia sets rules for commercial cannabis exports

Other Canada-headquarter companies with operations in Colombia have also said they will start exporting flower this year.

Cannabis operator PharmaCielo Ltd. (TSXV: PCLO) (OTCQX: PCLOF) which is headquartered in Toronto has also signed a sales deal through its subsidiary PharmaCielo Colombia Holdings S.A.S. with a Germany-based independent pharmaceutical wholesaler Greenstein Germany GmbH.

The company’s stock went down by 4.29 per cent on Thursday to $0.67 on the Canadian Ventures Exchange.

Florida-headquartered  Clever Leaves Holdings Inc. (NASDAQ: CLVR) (NASDAQ:CLVRW) also has its primary operations in Colombia and said it expects to export milled cannabis flower by the third quarter of 2022 and high THC flower before the end of the year.

Cleaver Leaves stock dipped by 3.14 per cent on Thursday to $1.54 on the Nasdaq Stock Market.

Read more: PharmaCielo to supply Germany with cannabis products from Colombia

 

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