Business Highlights
Exported 150kg of premium CBD 5% Full Spectrum Oil to Futura Farms Peru, a leading licensed distributor serving the Peruvian market, representing a single largest sale to any customer worldwide since the commencement of operation in 2018.
BBSAS obtained the registration of its agronomic operation area as a plant breeding unit and exporter of selected seeds from Colombian Agricultural Institute (ICA).
Appointment of Guillermo Rodriguez as a new Chief Financial Officer.
Appointment of Joaquin Barbera as a new independent member of the Board of Directors.
New Colombian Regulation
Blueberries, as a member of Board of Directors of Asociación Colombiana de Industrias de Cannabis (Colombian Association of Cannabis Industries), the largest association of cannabis licensed producers in Colombia, is closely monitoring of the progress of Colombian new regulatory framework (“Colombian regulatory”) surrounding medical cannabis. The Company is keeping abreast of the Colombian regulatory to be well equipped and timely prepared to seize the additional revenues that the new Decree allows; as it, specifically, related to the possibility to export dry flower of THC and CBD strains for the medical market, more efficient access of medical cannabis through pharmacies, the manufacture of FMCGs using non photoactive cannabis derivatives, and the extend of the magistral formulations for veterinary use.
The Company has identified opportunities such the ability to connect cannabis formulas with patients more easily, the delivery of raw materials and solutions for the FMCGs industry, and for veterinary products as immediate. Therefore, the Company has focused its efforts, time and resources in preparing high value-added formulations and non-psychoactive specialty ingredients for specific Food & Beverages applications and for veterinary uses. Additionally, the Company has approached national pharmacy chains for potential partnership in distributing its medical formulas across Colombia.
Third Quarter 2021 Financial Review
The Company’s current strategic focus is centered in the optimization of the cash position, giving special attention to the continued reduction and control of expenses and to the generation of income through multiple commercial avenues and various product lines and B2B services. The management rigorously ensures that all activities are guided under the three fundamentals pillars of Operate with Excellence, Connect with Demand, and Differentiate.
“We are a sales-oriented organization, but we believe that we have a strong and robust team to thrive in an exciting but complex industry”, said Mr. Jose Forero, President of the Operations in Latin America. He continued saying that “In the third quarter, we accomplished strong efficiencies, not only in the farm, but also in our extraction facility, where we incremented the capacity by 28% with no capex investment. We successfully exported a 150kg shipment of premium CBD oil for medical formulas to Peru and received the register from the Colombian government to both improve our strains and export seeds and cuttings. These are solid examples on how our actions are always guided by the three fundamental pillars of the Company”.
Since February 2021, after the Company’s CEO and Chairman, Facundo Garreton, joined of the Company, a new management team was put in place with a single objective, specifically, “Blueberries Medical Corp.’s short term strategy will be to minimize fixed structure costs and expenses, reducing capital and operational expenditures, while preserving working capital to optimize the resource and cost structure and full focus on revenue generating activities. For example, operating expenses were reduced from $1,053,831 incurred during the third quarter 2020 to current $682,665 in the third quarter of 2021, a reduction of 35%,” added Guillermo Rodriguez, new CFO of the Company. The Company has started to expand its commercial revenues, extending our business model and to provide extraction services to other cannabis companies in Colombia and with the recently completed private placement closed in September 2021, the Company received an approximately $2 million in cash,” continued Guillermo Rodriguez.
The Company’s completed a non-brokered private placement for aggregate gross proceeds of approximately $1.9 million dollars, strengthening our cash position from approximately $400,000 at the end of the third quarter to $1.8 million as of September 30, 2021. The Company also aggressively reduced its non-essential expenditures in an effort to conserve cash, resulting in significant reduction in payables and improved working capital. Together, with the anticipated increased revenue, the Company will focus its spending on CAPEX and EUGMP (European Union Good Manufacturing Practices) certifications.
The Company signed a Framework Agreement with YVY Life Sciences of Uruguay(“YVY”) a couple of months ago. Under the Framework Agreement, Blueberries and YVY will structure collaborative plans, initially starting with mutual development of strains and genetics in Colombia, and subsequent registration of those cultivars both in Colombia and Uruguay. This will provide a fast-track opportunity to register Blueberries’ proprietary genetics in Uruguay, thus allowing the partners to cultivate and export dry flower of Blueberries’ strains from Uruguay.
“We are thrilled with this strategic alliance. Our goal is to work closely with YVY, to replicate YVY’s unique cultivation model with small producers in Colombia, producing high-quality and natural products while generating scalable social benefits and minimizing environmental impact,” said Facundo Garreton, Chief Executive Officer and Chairman of Blueberries Medical Corp. “Our vision is to use the Framework Agreement as the first step in a long-term strategic partnership which will help us quickly take practical steps in developing collaborative projects both in Colombia and Uruguay.”
Blueberries’ commercial operations have successfully moved from introductory sales of cuttings of its cultivars to associate growers to effective sales of cannabis derivatives and extracts to customer both in Colombia and Peru. The company launched a tolling service processing flower and biomass from small and mid-size licensed producers that is also positively impacting revenue results this year. Revenue increased from $39,607 to $173,886, an increase of over 300% from the first three quarters in 2020. Gross profit grew to $109,126, an increase of 63% from the comparative first three quarters.
Operating expenses have been reduced by $1,932,072 or 55%, primarily due the reduction in the general and expenses as the Company’s continued to reduce non-essential and redundant expenditures across the Company as well as forfeiture of 5,241,665 of stock options.
Reduction in accounts payable and accrued liabilities of $604,254 or 60% from the first three quarters in 2020. In efforts to conserve cash, the Company has negotiated a debt settlement with resulted in a gain of $66,596 through the settlement.
About Blueberries Medical Corp.
Blueberries is a Latin American licensed producer of naturally grown premium quality cannabis with its primary operations ideally located in the Bogotá Savannah of central Colombia. The Company is led by a specialized team with proprietary expertise in agriculture, genetics, extraction, medicine, pharmacology and marketing, Blueberries is fully licensed for the cultivation, production, domestic distribution, and international export of CBD and THC-based medical cannabis in Colombia. Blueberries’ combination of leading scientific expertise, agricultural advantages and distribution arrangements has positioned the Company to become a leading international supplier of naturally grown, processed, and standardized medicinal-grade cannabis oil extracts and related products.
Additional information about the Company is available at www.blueberriesmed.com.
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