Blueberries Medical Reports 2020 Financial Results
TORONTO, April 30, 2021 (GLOBE NEWSWIRE) -- Blueberries Medical Corp. (CSE: BBM) (OTC: BBRRF) (FRA: 1OA) the Canadian parent of Blueberries S.A.S. (“BBSAS”), the premier Latin American licensed cultivator and producer of medicinal cannabis and medicinal-grade cannabis extracts, (together the “Company” or “Blueberries”), is pleased to report its financial results for the year ended December 31, 2020. Blueberries has filed today its audited consolidated financial statements and related management’s discussion and analysis, both of which are available on Blueberries’ profile at www.sedar.com. All financial information in this press release is reported in Canadian dollars, unless otherwise indicated.
“2020 was a year of significant changes at Blueberries,” said Facundo Garreton, Chairman and Chief Executive Officer, “Our new management team has been focusing on achieving three primary objectives: cash management, establishing processing and extraction capabilities, and laying the groundwork for meaningful commercial sales growth in 2021. Because of these efforts, Blueberries is well-positioned to move forward with its strategy despite COVID-19 related disruptions.”
Financial Highlights Commentary
Revenues - Blueberries commenced commercial operations in late Q2, 2020 with sales of cloned cuttings of its cultivars to associate growers ($59,308) and introductory sales of its cosmetics products ($6,670).
Pre-operating expenses - Since the Company is in early stages of commercial operations, material operational costs are included under pre-operating expenses, which are non-capital expenditures relating to Blueberries’ cannabis cultivation and extraction operations. During 2020, due to COVID-19, the company implemented voluntary salary reductions for personnel in management positions, which is reflected in the lower pre-operating expenses in the year.
General and Administrative (“G&A”) Expenses – An analysis of selected G&A expenses is as follows:
Share based compensation – During 2020, 1,320,000 unvested options were forfeited resulting in a reversal of stock-based compensation of $186,446.
Marketing and investor relations – The 2019 costs were incurred initially relating to promotion of Blueberries stock and communication with investors as part of investor relations. These costs were considered necessary to begin trading on the CSE in order to help promote the Company, raise capital, and also included other business initiatives towards promotion, development, and growth of the Company’s operations and assets.
Legal fees – The 2020 legal fees were incurred in relation to issuing of convertible debenture, private placements, ongoing administrative matters and legal counsel regarding the structure and format of potential business ventures the Company is pursuing. The fees incurred in 2019 mainly relate to the reverse takeover transaction and consecutive public listing of the company.
Consulting – includes advice and assistance on operations, quality management, facility development, financial and technical counsel, human resources services, and regulatory compliance. The reduction of consulting fees from 2019 to 2020 are due to the Company having incurred start-up related consulting fees in 2019, mainly engagement of new services at the start of the operations on compliance with EU-GMP standards. The 2020 consulting fees are also lower because of savings realized by financial services being internalized.
Audit and accounting fees – include cost of audit, accounting and taxation services provided by the Company’s external auditor and other third parties. The 2019 fees included the reverse takeover transaction related audit fees incurred to comply with public company listing requirements and fees from a third-party contractor for accounting and taxation services. The decrease in fees in 2020 reflect internalization of the accounting function.
General office expenditures – include office and equipment rent, utilities, communication, and cleaning services. The year-on-year decrease reflects savings measures implemented due to COVID-19 pandemic. Blueberries closed its Toronto and Bogota offices, with significant monthly rental fee savings.
Travel – The decrease in travel expenses from 2019 to 2020 is due to tighter cost control on discretionary expenses and the impact of COVID-19 travel restrictions.
Finance Expense - The finance expense consists of accrued interest of $60,667 on the convertible debenture and the accretion of convertible debt liability of $59,021.
Changes in Fair Value of Derivative Liabilities – include unrealized gain on the change in fair value of the convertible debenture related derivative liability.
About Blueberries Medical Corp.
Additional information about the Company is available at www.blueberriesmed.com. For more information, please contact:
Jose Forero, President, Latin American Operations
Ian Atacan, Chief Financial Officer
Cautionary Note Regarding Forward-Looking Information
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 Colombia, Argentina and elsewhere; and employee relations. Although the forward-looking statements contained in this news release are based upon what management of the Company believes, or believed at the time, to be reasonable assumptions, the Company cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Readers should not place undue reliance on the forward-looking statements and information contained in this news release. The Company assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.
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 January 31, 2019 filed on its issuer profile on SEDAR at www.sedar.com.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
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