Financial Highlights
All financial information in this press release is reported in Canadian dollars, unless otherwise indicated.
During the first 6 months of 2022, the Company has doubled its revenues from its comparative period in 2021; the Company has pivoted its core business from cultivation to the extraction services, and identified a unique niche in export market of isolated products to the
Business Highlights
The success and work accomplished during Q2 in
The poor cannabinoids solubility in water is one of the most challenging conditions and hindrances to penetrate new markets and increase consumption moments. Faced with this challenge, the Company is pleased to announce the launch of the long-awaited water-soluble development with functionality superior to what is currently on the market. The Company has put considerable efforts and investment to improve the technology performance along every single horizon; less turbidity, increased stability since the novel product developed is in solid state and disruptive functional ingredients to yield almost neutral flavor specialty.
BBM has developed different CBD-predominant and THC-predominant formulations, designed in a functional way to attend to different pathologies. With this development, supported by local business partners, BBM intends to penetrate different markets by facilitating the use of its products in patients in need of cannabis-based formulations (not hemp), being the case of THC where its natural source is Delta 9 THC, which exceeds in effectiveness, efficiency, and naturalness the current offer supplied by
New Colombian Regulation
On
In anticipation to this regulatory chances, the Company started in mid-2021 specific plans to: a) be ready to export premium grade THC with GACP CUMSC / IMC certification using a third-party cultivator model agreement with one of the largest flower processors in
Blueberries expects that these new opportunities allowed by the updated regulation in
Second Quarter 2022 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.
Results for the first two quarters of 2022 fall within the expectation of the management based on the strategic decision taken for the last quarter of 2021.
The Company has begun to expand its commercial revenues, extending our business model and to provide extraction services to other cannabis companies in
SUMMARY BALANCE SHEET
As at | As at | |||
Total current assets | $ | 799,817 | $ | 1,563,617 |
Total assets | 2,556,649 | 3,593,880 | ||
Total liabilities | 1,976,524 | 2,159,134 | ||
Total equity | $ | 385,207 | $ | 1,434,746 |
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
STATEMENTS OF LOSS AND COMPREHENSIVE LOSS
Three Months Ended | Six Months Ended | |||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||
Revenues | $ | 39,826 | $ | 14,785 | $ | 73,541 | $ | 37,905 | ||||
Cost of sales - product revenues | - | (7,171 | ) | (757 | ) | (8,366 | ) | |||||
Cost of sales - extraction services | (35,379 | ) | - | (54,419 | ) | - | ||||||
Direct cost of production - cultivation | (511 | ) | (32,846 | ) | (41,830 | ) | (97,907 | ) | ||||
Direct cost of production - extraction services | (79,411 | ) | (62,789 | ) | (110,128 | ) | (74,552 | ) | ||||
Gross profit | $ | (75,475 | ) | $ | (88,021 | ) | $ | (133,593 | ) | $ | (142,920 | ) |
Expenses | ||||||||||||
Operating expenses - cultivation | $ | (281 | ) | $ | (17,960 | ) | $ | (22,944 | ) | $ | (53,534 | ) |
Operating expenses - extraction services | (58,370 | ) | (9,465 | ) | (80,948 | ) | (11,238 | ) | ||||
General and administrative expenses | (331,097 | ) | 35,692 | (652,170 | ) | (124,261 | ) | |||||
Depreciation and amortization | (83,867 | ) | (141,191 | ) | (168,557 | ) | (358,217 | ) | ||||
Finance expense | (77,201 | ) | (64,980 | ) | (152,085 | ) | (127,469 | ) | ||||
Foreign exchange loss | 22,165 | 8,142 | (4,018 | ) | (27,124 | ) | ||||||
Total expenses | (528,651 | ) | (189,762 | ) | (1,080,722 | ) | (701,843 | ) | ||||
Other income (expense) | ||||||||||||
Gain on disposal of property, plant and equipment | 20,181 | - | 20,181 | - | ||||||||
Other expense | 72,228 | 8,716 | 26,110 | (14,629 | ) | |||||||
Total other expenses | 92,409 | 8,716 | 46,291 | (14,629 | ) | |||||||
Net loss | $ | (511,717 | ) | $ | (269,067 | ) | $ | (1,168,024 | ) | $ | (859,392 | ) |
Other Comprehensive Loss | ||||||||||||
Foreign currency translation adjustment | (36,467 | ) | (75,917 | ) | 46,825 | (269,723 | ) | |||||
Comprehensive loss | $ | (548,122 | ) | $ | (344,984 | ) | $ | (1,121,199 | ) | $ | (1,129,115 | ) |
Net loss per share - basic and diluted | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.01 | ) | $ | (0.01 | ) |
Weighted average number of shares outstanding - basic and diluted | 163,810,263 | 142,996,446 | 163,810,263 | 142,996,446 |
Revenue
For the three months ended
Operating Expenses | Operating expenses | |||||||||||
Cultivation | Extraction services | Cultivation | Extraction services | |||||||||
For the three months ended | ||||||||||||
Salary, wages, and benefits | $ | 431 | $ | 7,232 | $ | 15,496 | $ | 6,651 | ||||
Supplies, spare parts and equipment | 200 | 32,094 | 3,639 | 278 | ||||||||
License costs | (27 | ) | - | 527 | (2 | ) | ||||||
Facilities | 1,680 | 2,573 | (2,883 | ) | 915 | |||||||
Laboratory | - | (2,973 | ) | (3,182 | ) | 427 | ||||||
Fuel and oil | 36 | 1 | 6,245 | (8 | ) | |||||||
Transportation | 2 | 992 | (168 | ) | 19 | |||||||
Utilities | 106 | 416 | 268 | 135 | ||||||||
Other | (2,147 | ) | 18,035 | (1,982 | ) | 1,050 | ||||||
$ | 281 | $ | 58,370 | $ | 17,960 | $ | 9,465 | |||||
Operating Expenses | Operating expenses | |||||||||||
Cultivation | Extraction services | Cultivation | Extraction services | |||||||||
For the six months ended | ||||||||||||
Salary, wages, and benefits | $ | 9,429 | $ | 11,192 | $ | 27,477 | $ | 7,165 | ||||
Supplies, spare parts and equipment | 553 | 33,447 | 5,079 | 340 | ||||||||
License costs | 16 | - | 570 | - | ||||||||
Facilities | 4,223 | 4,702 | 1,313 | 1,096 | ||||||||
Laboratory | 65 | 868 | - | 564 | ||||||||
Fuel and oil | 51 | 203 | 6,424 | - | ||||||||
Transportation | 52 | 1,704 | 458 | 46 | ||||||||
Utilities | 264 | 1,076 | 957 | 165 | ||||||||
Other | 8,291 | 27,756 | 11,366 | 1,862 | ||||||||
$ | 22,944 | $ | 80,948 | $ | 53,644 | $ | 11,238 |
Operating Expenses
During the three months ended
During the six months ended
General and Administrative Expenses
Three months ended | Six months ended | ||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||
Audit and accounting | $ | 55,275 | $ | 17,500 | $ | 124,568 | $ | 8,683 | |||||
Consulting | 38,767 | 5,301 | 63,398 | 23,047 | |||||||||
Director and management fees | - | 43,700 | - | 100,700 | |||||||||
Filing and transfer agent fees | 23,368 | 7,940 | 34,929 | 32,842 | |||||||||
General office | 26,166 | 10,171 | 11,216 | 24,979 | |||||||||
Insurance | 24,561 | 20,568 | 47,425 | 38,183 | |||||||||
Legal | 7,528 | 4,496 | 8,420 | 4,829 | |||||||||
Other | 366 | 19,189 | 636 | 22,894 | |||||||||
Salary, wages, and benefits | 127,447 | 95,731 | 265,245 | 159,511 | |||||||||
Share based compensation expense (recovery) | 27,182 | (260,265 | ) | 71,660 | (291,425 | ) | |||||||
Travel | 437 | (23 | ) | 445 | 18 | ||||||||
Total | $ | 331,097 | $ | (35,692 | ) | $ | 627,942 | $ | 124,261 |
Audit and accounting fees - Audit and accounting fees include cost of audit, accounting and taxation services provided by the Company’s external auditor and other third parties. The increase of
Director and management fees - For the three months ended and six months ended
General office - General office expenses include office and equipment rent, utilities, communication, and cleaning services, which are expensed as incurred. For the three months ended
Salary, wages, and benefits-Salary, wages, and benefits include payroll, training, benefits, and severance costs of employees in
Share-based compensation expense (recovery) - For the three months and six months ended
About
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
Additional information about the Company is available at www.blueberriesmed.com. For more information, please contact:
jforero@blueberriesmed.com
Tel: +57 310 345 8808
grodriguez@blueberriesmed.com
Tel: +54 911 6015 2227
Cautionary 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: commencement of commercial production of CBD-dominant oils and products, successful implementation of full GMP standards at its extraction facility to allow for additional export potential to international markets, achieving additional milestones is contemplated, or at all, ability to expand distribution networks, ability to expand and upgrade the Company’s cultivation facilities in
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
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
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
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