TORONTO: Blueberries Medical Corp., a Latin American licensed producer of medicinal cannabis and cannabis-derived products, has officially commenced sales of its proprietary cultivars approved by the Colombian Institute of Agriculture (ICA).
Blueberries has entered into multiple sales agreements to distribute its proprietary genetics to licensed producers located in Bogota Savannah, the region where the Company operates. Under the agreements, the Company will leverage contract growers to produce the Company’s registered non-psychoactive cannabidiol (CBD) strains approved by ICA.
These proprietary cultivars were developed and tested by the Company’s agronomic team and optimized for growth in the local climate.
Production from contract growers will be processed at the Company’s extraction facility under arrangements whereby Blueberries will retain a certain portion of the extracted product for resale as compensation for these services. Such arrangements provide the Company with premium extracts without the associated cultivation capital expenditures and related risks.
“Being located in the same geographical region with the largest number of licensed cannabis growers in Colombia is a tremendous opportunity to sell our approved CBD dominant genetics to the licensed cannabis producers of the region” said Carlos Maldonado, Vice President of Operations.
“This added line of business has great potential and will allow us to expand our dry flower production capacity without making any new substantial capital or operational investment in cultivation, which is aligned with our strategic focus on extraction. Additionally, we will secure sufficient cannabis biomass to feed our extraction line and will process a standardized extract oil.”
Blueberries leverages technology and strict quality protocols in its genetics cultivation operations. Starting with the cutting of the clones from the mother plant, the highly skilled and experienced technical and operational personnel utilize the most optimal technique to ensure the starter plants are female and clones produce high-yielding crops.
“Now that our stabilized clone production is in full operation, we are able to produce high quality genetics for the regional marketplace. By bringing our CBD-dominant seedlings to licensed producers along with our value-added standard operating procedures, we are leveraging our operational expertise and cultivation license.” said Camilo Villalba, Chief Executive Officer of Blueberries. “Our genetics sales will be followed by the sales of our extracts in Q3, 2020, generating revenues to achieve cash flow positivity in the near future.”
In addition to the Company’s own flower production, multiple agreements with local contract and associate growers secure sufficient cannabis supply to utilize a significant portion of the extraction facility’s current capacity, while scaling production capacity to maximize the use of the Company’s extraction capabilities.
The initial processing capacity of the extraction facility is approximately 70,000kg/year of dried flower. Blueberries’ operations team is heavily focused on establishing a best-in-class extraction operation with the goal of becoming a leading extraction center in Latin America and an international supplier of medicinal-grade cannabis oil extracts, active pharmaceutical ingredients (API) and related products.