"We have achieved remarkable growth, with revenue doubling compared to the same period last year. This accomplishment is a testament to our unwavering commitment to excellence and our strategic initiatives. Our team's dedication and hard work have been instrumental in driving our success, and we are excited about the future prospects of
FINANCIAL AND BUSINESS HIGHLIGHTS – FIRST QUARTER 2023 AND AS OF THE DATE HEREOF:
- Total revenue for the first quarter of 2023 reached
$77,894 , representing a substantial increase of$44,179 (131%) compared to the comparative period. This growth reflects the company's unwavering commitment to excellence and strategic initiatives.
Business Expansion and Achievements:
1. Market Expansion:
Blueberries Corporation has expanded its export sales of THC and CBD isolates to key markets such asPeru ,Argentina , andAustralia .- The company successfully completed one of its largest THC Distilled exports from
Colombia toAustralia after rigorous quality validation. This achievement has paved the way for an upcoming second order toAustralia , which will be three times larger and shipped before the end of the second quarter of 2023. Blueberries Corporation has also received new orders of THC value-added products, including bulk semi-elaborate products, resin, and distillate, from customers inBrazil andChile .
2. Regulatory Milestones:
- In the first quarter of 2023, the company obtained authorization from the logistic hub's authority to export the first commercial shipment of CBD:THC balanced formulations.
Blueberries Corporation is currently navigating regulatory requirements to finalize this operation and enter into a commercial arrangement with one ofBrazil's largest Compassionate Use brands.
3. Joint Venture Agreement:
Blueberries Corporation has signed a transformative joint venture agreement with Allied Corp, a renowned industry player, to expand its product offering and global market presence.- By combining Allied's expertise in premium quality flower production with Blueberries' state-of-the-art extraction facilities, the companies will collaborate on sales efforts and optimize production capabilities.
- This strategic partnership enables Allied Corp to offer high-quality derivative-based products in the markets it currently distributes, expanding its global footprint. The companies' clients and supply channel partners span five continents, including
Australia ,Europe ,Asia ,South America , andNorth America .
4. Termination of Farmland Purchase Agreement:
- On
April 5, 2023 , the company made the decision to terminate the agreement to purchase farmland in Cogua (Zipaquira),Colombia . As part of the termination agreement,Blueberries Corporation will receive compensation totaling$380,776 (US$281,140 ), to be settled as follows:$243,792 (US$180,000 ) in cash on closing. Transfer of 3,905,000 shares of the Company owned by the seller to Terraflos, valued at$136,984 (US$101,140 ). In turn, Terraflos will pay the deemed value in cash toBlueberries Corporation byJuly 30, 2023 .
These significant accomplishments and developments reflect
For the three months ended | ||||||
Revenues | ||||||
Products revenue | $ | 77,115 | $ | 23,600 | ||
Extraction services | 779 | 6,743 | ||||
Cultivation and others | - | 3,372 | ||||
Cost of Sales | ||||||
Products revenue | (66,693 | ) | (10,888 | ) | ||
Extraction services | (674 | ) | (6,929 | ) | ||
Cultivation and others | - | (1,980 | ) | |||
Direct cost of production - extraction services | (21,669 | ) | (23,940 | ) | ||
Direct cost of production - cultivation | - | (29,647 | ) | |||
Gross loss | $ | (11,142 | ) | $ | (39,669 | ) |
Revenue Breakdown and Improved Cost Efficiency Drive Strong Performance
Revenue Growth Drivers:
The successful launch of our new product, CBD isolate, played a significant role in driving revenue growth. The market reception has been exceptional, contributing substantially to our increased revenue.
Expansion of CBD isolate exports to countries such as
Revenue Distribution:
CBD and THC derivatives, specifically our standard oil products, accounted for 99% of our total revenue. This highlights the strong demand for these high-quality derivatives in the market.
Extraction services contributed 1% to our revenue, showcasing the value and expertise we offer to our clients.
Cost of Sales and Direct Cost of Production:
Our cost of sales and direct cost of production encompasses various direct expenses related to extraction and agricultural operations, including strain management, cultivation supplies, personnel costs, and allocation of fixed operational costs.
For the three months ended
Operating expenses | Operating expenses | ||||||
Extraction services | Cultivation | Extraction services | |||||
For the three months ended | |||||||
Salary, wages, and benefits | $ | 3,655 | $ | 411 | $ | 994 | |
Supplies, spare parts and equipment | - | 87 | - | ||||
Facilities | 4,979 | 8,103 | 5,673 | ||||
Fuel and oil | - | 50 | - | ||||
Transportation | 3,202 | 159 | 1,896 | ||||
Utilities | - | 502 | 1,761 | ||||
Leases | - | 2,122 | - | ||||
Other | 13,946 | 16,032 | 25,900 | ||||
Total | $ | 25,782 | $ | 27,466 | $ | 36,224 |
Achievement: Significant Reduction in Operating Expenses Drives Financial Performance
Operating Expense Reduction:
Our operating expenses for the three-month period amounted to
This achievement is primarily attributed to our strategic decision to temporarily cease cultivation operations. By focusing our efforts on other core areas, we have successfully minimized the associated operating expenses.
By optimizing our cost structure and reallocating resources, we have created a more efficient and streamlined operation, positioning
We remain committed to driving further improvements and maximizing value for our shareholders and stakeholders. We are confident that our prudent management of operating expenses will continue to generate positive results as we navigate the dynamic landscape of the cannabis industry.
General and Administrative (“G&A”) Expense
Substantial Reduction in General and Administrative Expenses Drives Cost Efficiency.
G&A Expense Reduction:
Total G&A expenses for the period amounted to
This achievement is a testament to our diligent efforts in streamlining administrative operations, identifying cost-saving opportunities, and implementing efficient practices across our organization.
Nature of G&A Expenses:
Our G&A expenses encompass various administrative costs associated with the day-to-day operations of the company, including but not limited to office rent, utilities, professional services, software licenses, and other administrative overheads.
By diligently managing our G&A expenses, we have created a leaner and more cost-efficient operational framework, enabling us to allocate resources strategically and focus on core business activities.
We remain steadfast in our commitment to driving further cost efficiencies while maintaining the highest standards of operational effectiveness and financial discipline.
The nature of G&A expenses is as follows:
For the three months ended | |||||
Audit and accounting | $ | 37,000 | $ | 62,923 | |
Consulting | 7,906 | 31,001 | |||
Director and management fees | 42,488 | - | |||
Filing and transfer agent fees | 11,300 | 11,561 | |||
General office | 3,788 | 9,278 | |||
Insurance | 26,447 | 22,864 | |||
Legal | 11,600 | 892 | |||
Other | 11,813 | 278 | |||
Salary, wages, and benefits | 88,184 | 137,798 | |||
Share based compensation expense | 20,694 | 44,478 | |||
Total | $ | 261,220 | $ | 321,073 |
Salary, wages and benefits
Strategic Cost Management Leads to Significant Reduction in Salary, Wages, and Benefits
Cost Reduction:
Total salary, wages, and benefits for the period amounted to
This achievement is a direct outcome of our focused cost management initiatives, which include careful control of headcount and resource allocation. By streamlining our workforce and aligning resources with commercial and revenue-generating activities, we have achieved significant savings in personnel-related costs.
Our commitment to prudent financial management and strategic resource allocation allows us to effectively allocate resources towards activities that drive revenue and enhance our overall business performance.
Audit and accounting
Audit and accounting fees include cost of audit, accounting and taxation services provided by the Company’s external auditor and other third parties. The decrease is due to the under accrual of fiscal 2021 audit fees of
Director and management fees
Director and management fees are incurred specifically for certain directors and officers of the Company for services provided to Blueberries either from themselves personally or through a related entity. For the three months ended
Share based compensation
For the three months ended
Other matters
Board Appointments and Key Leadership Changes Drive Growth and Expansion
Board Appointment:
We are delighted to welcome
The Board Member
Board and Leadership Changes:
With the appointment of
In line with these structural changes, we are thrilled to announce the appointment of
About
Elevating the Cannabis Industry with Innovative Ingredients. Blueberries is a distinguished Latin American licensed producer and a prominent international supplier of high-quality cannabis-derived ingredients across various industries. Our core focus lies in developing and commercializing a wide range of cannabis-derived ingredients, including high and low THC, CBD, and other cannabinoids, in compliance with the regulations of each destination country and specific application requirements.
As a part of Terraflos, a comprehensive holding company that excels in producing biocomponents and integrating the production value chain from plant molecules to people, Blueberries leverages the synergies among our scientific expertise and other Terraflos companies to create exceptional value for people's health and well-being.
Blueberries possesses a team of experts at the forefront of cannabis research and development. Their deep understanding of the plant's properties, coupled with their scientific acumen, enables us to create innovative and effective cannabis-derived ingredients. As an international supplier, we ensure that our ingredients adhere to the regulations of each destination country. By integrating our supply chain with precision and expertise, we guarantee consistent quality and compliance.
Blueberries actively collaborates with other Terraflos companies to maximize the value we bring to people's health. By combining our strengths and resources, we unlock new possibilities and achieve groundbreaking advancements in cannabis-derived ingredient development.
At Blueberries, we are dedicated to making a positive impact on people's lives by providing high-quality, safe, and compliant cannabis-derived ingredients. We understand the diverse needs of various industries, and our goal is to meet and exceed their expectations by delivering exceptional solutions backed by scientific rigor and meticulous quality control.
With our relentless pursuit of innovation, commitment to excellence, and close collaboration within the Terraflos ecosystem, Blueberries is positioned as a pioneering force in the cannabis industry. Together, we strive to create transformative cannabis-derived ingredients that add significant value to the health and well-being of individuals worldwide.
For more details about our company, please visit our website at www.blueberriesmed.com. If you have any inquiries or require further information, feel free to reach out to:
Chairman of the Company
Email: fgarreton@blueberriesmed.com
Phone: +54 911 6015 2227
Chief Financial Officer
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.
Source:
2023 GlobeNewswire, Inc., source