Blueberries Medical Announces Joint Venture with QualCann SAS to Export to the US Market
TORONTO, May 05, 2020 (GLOBE NEWSWIRE) — Blueberries Medical Corp. (CSE: BBM) (OTC: BBRRF) (FRA: 1OA) (the “Company” or “Blueberries“), a Latin American licensed producer of medicinal cannabis and cannabis-derived products, is pleased to announce that the Company has entered into a Joint Venture (the “JV”) with QualCann SAS (“QualCann”), an arm’s length third party, to produce extract oil to be commercialized in the United States of America (“US”) market.
QualCann is cultivating at least two net hectares of its registered cultivars approved by the Colombian Agricultural Institute (“ICA”) at its facility located in the Bogota Savanna, to deliver high quality dry and ground cannabis flower. QualCann has an annual estimated production of 3,750 kg of dried biomass per hectare. With a total expected input of 7,500 kg of flower, the JV will have an estimated production of 1,000 liters of crude oil per year.The JV, owned 50% by Blueberries and 50% by QualCann, will produce bulk medicinal Cannabidiol (“CBD”) oil extract. QualCann will fund 100% of the agronomic operational costs including sowing, cultivation, harvest, post-harvest, dry flower laboratory tests and final transportation of the dried cannabis to Blueberries´ extraction center, while Blueberries will do the extraction of the dried flower in its Extraction and Processing Facility (the “Extraction Facility”) to obtain the CBD Oil Extract (the “Extract”), including Extract laboratory tests and storage until pick up by QualCann.Blueberries continues securing dried cannabis supply with the goal of covering the extraction facility’s current capacity. Through these agreements the Company will scale production capacity to achieve significant sales and maximize the use of the Extraction Facility.Blueberries will start the initial shipments of the Extract through QualCann in verification of shipping routes and international trade and customs requirements. The Extract, meeting the purity requirements of the 2018 US Farm Bill, will be marketed by QualCann in the USA, for sale in multiple states including Colorado. The Extract resulting from the process must achieve international standards, in terms of potency, heavy metals, microbiological, pesticides and pesticide residues, which will be corroborated with quality analysis from an independent laboratory. The JV is working diligently with its legal team to finalize United States Department of Agriculture (“USDA”) import permits allowing free clearance through US customs and border patrol. Along with positive lab results, all imports into the USA will be strictly under 0.3% of the psychoactive element of THC, deeming the products non-psychoactive hemp derivatives.“This JV will allow us to introduce Blueberries’ superior quality extracts in the USA medicinal cannabis market and help us to continue developing our commercial strategy generating sales in 2020 and beyond through our strategic partner,” said Eduardo Molinari, Chief Marketing Officer of Blueberries.“We are excited with this partnership, as it furthers our long-term goals and quickly affords us the opportunity to enter the international market with our unique genetics and top-quality biomass,” said Dr Eduardo Covo, Director of Research and Development for QualCann.About QualCann SAS
QualCann SAS, a wholly owned subsidiary of QualCann, Inc., a Delaware corporation, is a licensed and vertically integrated Colombian cannabis operator. Established in 2017 and one of the first licensees to obtain all necessary permits for commercial production, QualCann is at the forefront of the Colombian market with its unique non-psychoactive genetics registered with ICA. QualCann is leveraging over 12 years of experience in cannabis genetic reproduction and distribution in the legal cannabis sector, particularly in the Colorado market. These genetic cultivars are continuously improved with the gifts that the Colombian ecosystem and natural resources provide. QualCann provides consistency and repeatability through its genetic stabilization and cultivation practices which require minimum inputs compared to artificial indoor growing. The company has decades of experience scaling complex industrial processes for dozens of multi-national corporations. This winning formula of top-quality breeding along with scalable practices for commercial outdoor biomass production will prove a key requirement for the global cannabis supply chain. Starting July 1st, 2020, the Colorado market will accept CBD oil produced outside the licensed system and QualCann is poised to take advantage of this using a Health Department licensed facility to distribute in ColoradoAdditional information about QualCann is available at www.QualCann.co; or please contact:Dr. Eduardo Covo, Director of Research and Development e.covo@QualCann.coAbout 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 and operations currently being established in Argentina. 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. For more information, please contact:Camilo Villalba, Chief Executive Officer
Tel: +57 (313) 483 0131Ian Atacan, Chief Financial Officer
Tel: +1 (416) 562 3220Cautionary Note Regarding Forward-Looking Information
This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward looking statements”) within the meaning of the applicable Canadian securities legislation. All statements, other than statements historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward looking statements relate, among other things, to: closing of the proposed transactions and achieving milestones in 2020 as contemplated, or at all, ability to expand distribution networks, ability to expand and upgrade the Company’s cultivation facilities in Colombia, internal expectations, expectations regarding the ability of the Company to access new Latin American and international markets, the ability to attract and retain new customers and/or financing, and future expansion plans including development of the cultivation, production, industrialization and marketing of cannabis for commercial and scientific purposes.These forward-looking statements are based on reasonable assumptions and estimates of management of the Company at the time such statements were made. Actual future results may differ materially as forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to materially differ from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors, among other things, include: fluctuations in general macroeconomic conditions; fluctuations in securities markets; expectations regarding the size of the Colombian and international medical cannabis market and changing consumer habits; the ability of the Company to successfully achieve its business objectives; plans for expansion; political and social uncertainties; inability to obtain adequate insurance to cover risks and hazards; and the presence of laws and regulations that may impose restrictions on cultivation, production, distribution and sale of cannabis and cannabis related products in Colombia, Argentina and elsewhere; and employee relations. Although the forward-looking statements contained in this news release are based upon what management of the Company believes, or believed at the time, to be reasonable assumptions, the Company cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Readers should not place undue reliance on the forward-looking statements and information contained in this news release. The Company assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.Additional information regarding the Company, and other risks and uncertainties relating to the Company’s business are contained under the heading “Risk Factors” in the Company’s Listing Statement dated January 31, 2019 filed on its issuer profile on SEDAR at www.sedar.com.No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
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A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/71c1f131-dba3-4ed9-952d-9833579805c5