Blueberries Provides Business Update and Extends Maturity Date of Convertible Debentures

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Blueberries Medical Corp. BBRRF BBM (ENG:1OA) has made several shipments of CBD and non-psychoactive derivatives to customers in Argentinaand to date has exported a total of over 60 kg to 6 different buyers.

Quality validation processes with major pharmaceutical and cosmetic companies in this country are proceeding positively, and the company estimates annual sales of over $2.5 million in 2023. It is also expected that at At the end of the third quarter of 2022, Blueberries launches the delivery of several high-THC formulations locally and internationally. , starting with Brazil as the first country to export psychoactive formulations. Argentina and Brazil should then become the two main destinations for the company’s products in the coming quarters.

Effective June 30e, the Colombian Ministry of Justice granted Blueberries export licenses for psychoactive and non-psychoactive cannabis flowers. In addition, the company has signed an agreement with YVY Life Sciences, a Uruguayan company specializing in the production of quality cannabis dried flowers to mutually operate Blueberries cultivation facilities. YVY Life Sciences will upgrade and operate this facility for the next 3 years, with the intention of exporting the premium THC flower in 2023 through a revenue sharing program. In addition to potential sales, the agreement represents a reduction in operating expenses and capital expenditures related to the Guatavita´s cultivation facilities and will allow the company to concentrate its efforts on all the other different cultivation processes.

In order to ensure an uninterrupted supply of flowers, Blueberries signed on May 16 a third-party culture agreement with Econnabis SAS to get access to the GACP CUMCS/IMC dry flower. Given the large scale of this partner, the agreed price per kg of harvested flowers will be significantly lower than the historical total cost of production per kg of the blueberries. Along the same lines, the company expects the first shipments of premium high-THC and high-CBD GACP medical flowers to global markets before the end of the year.

The company has consistently reduced overall expenses, with a 73% decrease between 2020 and 2021, and with an 18% reduction in operating expenses for cultivation and extraction facilities by the end of June 2022 compared to the previous period 2021. This financial situation will allow Blueberries to start in August the adequacy of a 13,000 square foot extraction and processing laboratory to pharmaceutical GMP standards which will be operational by the end of the first quarter of 2023.

VSconvertible Debentures

The Company has extended the maturity date of an aggregate of C$1 million of interest-bearing debentures (13% per annum) convertible into common shares of the Company at the lesser of $0.065 per share or the weighted average price 15-day volume of common shares on the Canadian Stock Exchange. The company and the holders of the debentures have agreed to extend the maturity date of the debentures to July 13, 2023 in consideration for total transaction costs of C$163,800 payable in cash or common shares of the company on the date of maturity. prolonged.

The extension of certain debentures held by Terraflos inc.company controlled by Garreton FactorChief Executive Officer and Director of the Company, was considered a “related party transaction” under National Instrument 61-101 Protection of Minority Holders of Securities in Special Transactions.

Photo by Richard T on Unsplash

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