Blueberries Medical Corp. (OTCQB:BBRRF) (CSE:BBM) (FRA:1OA) released its financial results for the quarter ended on June 30, 2022, revealing total revenue of CA$39,826, an increase of CA$25,041 (or 169%) compared to Q2 2021.
Q2 2022 Financial Highlights
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The gross profit, excluding the direct cost of production, in the extraction services is approximately 11%.
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Gross profit was a loss of CA$75,475 compared to a loss of CA$88,021 in Q2 2021.
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Net loss was CA$511,717 compared to net loss of CA$269,067 in Q2 2021
The company has pivoted its core business from cultivation to the extraction services, and identified a niche in export market of isolated products to the Latin America countries. To date, the company has been successful in exporting isolated products to Argentina. “Accordingly, in aligning with the company’s strategy, the company has begun to expand its commercial revenues, adding more final products and services to others cannabis companies in Colombia and Latin America (Latam),” stated Facundo Garreton, CEO and chairman of Blueberries Medical Corp.
New Colombian Regulation
On February 18, 2022, the Colombian government issued the Resolution 227/2022 that improved license holders’ conditions, such as extending from 5 to 10 years the term of the licenses and facilitating the process for applying to THC quotas. This resolution also regulated the use of non-psychoactive cannabis plant and its derivatives in food, beverages, alcoholic beverages, and dietary supplements. In this same direction, on April 1, 2022, the Colombian government issued the Resolution 539/2022 that regulates the Decree 811 of 2021 in all aspects related to the exportation of seeds for sowing, grain, plant component, cannabis plants, cannabis, cannabis derivatives and related products, allowing therefore the exportation of dry flower for medical and scientific purposes.
In anticipation to this regulatory chances, the company started in mid-2021 specific plans to:
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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 Colombia;
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Started the development of multiple non-psychoactive high value-added ingredients for food and beverages, including specialties for chocolate and a fully translucid CBD water-soluble powder for beverages and other uses.
Blueberries expects that these new opportunities allowed by the updated regulation in Colombia will be rapidly traduced into sales and income for the company both locally and in development markets during the third quarter of 2022.
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 its business model to provide extraction services to other cannabis companies in Colombia. Together, with the anticipated increased revenue, the company will focus its spending on CAPEX and EUGMP certifications.
Photo: Benzinga; Sources: courtesy of Kindel Media via Pexels
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