- Blueberries Medical (CSE:BBM) has signed a joint venture agreement with QualCann SAS for selling CBD oil extracts in the US
- Each company will own 50 per cent of the joint venture, which could produce 1,000 litres of crude oil annually
- QualCann will fund the operational costs, while Blueberries will undertake the extraction of the oil at its processing facility
- Both companies are working to secure import permits from the United States Department of Agriculture (USDA) to allow for distribution
- Blueberries Medical (BBM) is up 16.67 per cent to 7 cents per share, with a market cap of C$7.64 million
Blueberries Medical (CSE:BBM) has signed a joint venture agreement with QualCann SAS for selling CBD oil extracts in the US.
Each company will own 50 per cent of the joint venture.
QualCann SAS, is a wholly owned subsidiary of QualCann Inc. The subsidiary is currently cultivating at least two hectares of high-quality cannabis flower at its facility in Bogota Savanna, Colombia.
Per the agreement, QualCann will supply this cannabis flower as raw materials for the production of CBD oil extracts.
QualCann will also fund all agronomic operational costs, such as sowing, cultivation, harvest, post-harvest, and dry flower laboratory tests. It also includes final transportation of the dried cannabis to Blueberries’ processing facility.
At the facility, Blueberries will be responsible for the extraction and processing of the material to produce the CBD oil. Blueberries will also undertake various laboratory tests and storage requirements.
With an expected flower input of 7,500 kilograms, the joint venture will produce roughly 1,000 litres of crude oil annually.
Eduardo Molinari, Chief Marketing Officer of Blueberries Medical, said the agreement is a key step in the company’s growth strategy.
“This JV will allow us to introduce Blueberries’ superior quality extracts in the US medicinal cannabis market and help us to continue developing our commercial strategy generating sales in 2020 and beyond through our strategic partner,” he said.
According to the 2018 US Farm Bill, the extracts must meet certain purity requirements. Once the necessary standards have been achieved and formalised by an independent laboratory, Blueberries will commence initial shipments. Meanwhile, QualCann will undertake the necessary marketing efforts.
QualCann’s Director of Research and Development, Dr Eduardo Covo, noted that the decision to enter the partnership was part of a long-term strategy.
“We are excited with this partnership, as it furthers our long-term goals and quickly affords us the opportunity to enter the international market with our unique genetics and top-quality biomass,” he explained.
Both companies are working to secure import permits from the US Department of Agriculture (USDA), allowing distribution of the CBD oil.
Blueberries Medical (BBM) is up 16.67 per cent to 7 cents per share at 12:59pm EDT.