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Blueberries Medical announces use of first cannabis extraction line

Cannabis
TSX:BBRRF
14 February 2020 12:54 (EDT)

Blueberries Medical (BBM) has announced the deployment of its first cannabis oil extraction line.

Located 30 minutes outside of Bogota, the extraction line is fully operational and will offer the company significant capacity to process cannabis from its cultivation centres, as well as cannabis acquired from third party producers.

Initial capacity of the facility is expected to be 80,000 kg per year of dried flower, with the ability to accommodate further growth in the addition of up to five more extraction lines.

“We are extremely pleased to announce the commissioning of the first extraction line at our extraction facility, a major milestone for Blueberries,” said Blueberries Medical CEO, Camilo Villalba.

“We are confident in our ability to continue meeting operational and commercial goals for 2020 as we accelerate towards commercial sales using our scalable and low-cost approach to address the local and international demand for cannabis oil.”

The equipment, manufactured by Vitalis, is the first of its kind in Colombia and is built to strict EU-GMP certification.

Blueberries Medical is expecting commercial production of CBD oils and products to begin in the first half of 2020.

“We are also looking forward to commencing work with our contract and associate growers who share our vision for producing the highest quality cannabis. Our goal is to support our partners, who are licensed producers by providing our proprietary genetics, propagation services and extraction capabilities,” continued Mr. Villalba.

The company also announced that it has entered into several agreements with cannabis cultivators to secure over 40,000 kg per year of dried flower supply.

It’s expected that these contracts will scale production capacity to meet sales growth and simultaneously maximise the efficiency of the Blueberries’ facilities.

Shares in the company are currently trading at C$0.16, with a market cap of C$17.29 million.

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