Canadian-Colombian medical cannabis company PharmaCielo Ltd (OTC: PCLOF) (CVE: PCLO) announced Thursday that it enacted the first in a series of contracts with local growers to outsource the cultivation of some of its proprietary high-CBD strains.

The move is part of PharmaCielo’s long-term objective to become an industrial-scale global provider of medicinal-grade cannabis extracts. It will allow the company to expand its cultivation capacity by more than 30%, taking its active surface from 12 hectares to more than 15 hectares.

Pending the external grower’s receipt of technical licensing from the government, total land size under cultivation for the company could double to 24 hectares. The product will then be processed in a new facility, currently under construction, which is expected to be able to process 360,000 kilograms of biomass per year.

PharmaCielo CEO David Attard told Benzinga “the use of external contractors to grow our proprietary non-psychoactive strains enables PharmaCielo the operational flexibility to scale-up production on an as-needed basis."

It also allows the company to shorten production and delivery time to B2B customers with an established inventory of raw materials readily available for processing final extracts based on client needs, he added.

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