Blueberries Medical Corp. (CSE: BBM / OTC: BBRRF / FRA: 1OA) – Latin American Cannabis Producer with a Flexible Cultivation Footprint and Low Production Costs – Initiating Coverage
Blueberries Medical Corp. (“Blueberries”, “company”) is a leading Latin American producer of premium medical-grade cannabis products, with operations in Colombia and Argentina.
High Cannabis Yield: We estimate that Blueberries will have a cannabis yield of 146 grams per sq. ft. by the end of 2020 – a number that is significantly higher than our observation of an average yield of between 80 grams per sq. ft. to 120 grams per sq. ft. for major Canadian cannabis producers.
Low Production and Operating Costs: Due to ideal climate conditions and low labor costs, the company expects a long-term cost per gram of US$0.15. This is exceedingly low relative to the average cost per gram of major Canadian cannabis producers.
Explosive Growth in Latin America’s Legal Cannabis Market Expected: According to a report by Prohibition Partners, legal Latin American cannabis sales of US$125 million in 2018 are expected to grow at a CAGR of 58.41% to US$12.70 billion by 2028.
The company’s management team has a strong track record. Blueberries’ CEO Dr. Stocker combines experience with a large-cap company with experience in the Latin American cannabis space, having served as CEO of Colombian cannabis company Pharmacielo Ltd. (TSXV: PCLO) between 2015 and 2018.
