ALID
Industry:
Pharma & Biotech

DESCRIPTION

Allied Corp grows medical cannabis in Colombia and sells it wholesale to pharmaceutical distributors and manufacturers in international markets where medical cannabis is legal. Allied's core product is dried cannabis flower — both THC and CBD varieties — grown at its facility in Bucaramanga, Colombia. Allied sells bulk flower through multi-year forward purchase agreements with minimum annual volume commitments, targeting distributors and manufacturers in markets including Australia, the UK, Poland, Switzerland, and Portugal. Recent contracts include a €15.3M, 5-year agreement with a Polish distributor and a 3-year agreement with a UK distributor. Allied's central business case is a cost advantage: Allied estimates its direct agricultural cost at $0.05–$0.075 per gram, compared to an estimated $1.00–$2.00 per gram for North American producers, driven by Colombia's equatorial climate, which allows for 10–12 harvests per year. Because most target markets require EU-GMP certification for imported cannabis, Allied routes product through EU-GMP certified manufacturing partners in Portugal and Switzerland, who process the flower before it enters regulated markets. Allied's current production quota is 50,000 kg annually, with current output running at roughly 600–1,000 kg per month. Allied is a single-segment business focused entirely on Colombian cultivation and export; several other business lines — including U.S. CBD consumer products, pharmaceutical drug candidates, and a U.S. cultivation subsidiary — are dormant or deferred pending profitability of the core business.

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