Blueberries Medical Corp. (CSE: BBM) (OTC: BBRRF) (the “Company” or “Blueberries“), a leading Colombia-based licenced producer of medicinal cannabis and cannabis-derived products, has entered into a letter of intent (the “Letter Agreement”) dated February 13, 2019 for a joint venture (the “Joint Venture”) with Harmony and Life S.A.S., operating as El Manantial medical centers (“El Manantial”).
The Joint Venture will further the development and commercialization of Blueberries’ medicinal cannabis products through El Manantial’s rapidly growing patient base and collaboration with El Manantial’s team of physicians, pharmacists and technicians with deep expertise in a variety of medical areas. It will also provide a direct distribution channel to an established and rapidly growing patient by selling exclusively Blueberries’ cannabis-derived products. The Company has also set out to build two BPE (Good Elaboration Practices) certified pharmacies in support of the initiative which will provide additional sales channels for Blueberries’ products. Blueberries and El Manantial will also develop a treatment-focused medical education program designed to assist physicians in prescribing cannabis-based treatment plans to patients.
“Our joint venture with El Manantial provides an outstanding opportunity for Blueberries to develop medical products and acquire patients in the Colombian market”, stated Christian Toro, Chief Executive Officer of the Company. “El Manantial is a respected leader in Colombia, and their focus on equitable access to medicine and patient care aligns with our goal of providing treatment to a broad spectrum of patients. The Joint Venture emphasizes communication with prescribing doctors and education of both doctors and patients which is expected to ensure that Blueberries is developing treatments that the medical community needs, and that a streamlined process is developed for the company to reach its patients.”
El Manantial is among the fastest growing networks of medical centers in Colombia, currently representing over 7,000 patients and expected to grow to over 50,000 patients over the next 36-month period as four new centers are projected to come online. This is an important development in Blueberries’ strategy to acquire patients and develop treatments with cannabis products, positioning Blueberries as a leader in the Colombian medicinal cannabis product market.
“This transaction will allow us the opportunity to work with the Blueberries team to develop new cannabis products and treatments, which can in turn be rolled out to our medical center network, offering patients the best possible care”, stated Dr. Andres Vidal, founder of El Manantial. “We plan for our prescribing physician education program to be an important step in supporting the widespread adoption of cannabis treatments in Colombia and globally.” Dr. Vidal, who has control and direction over El Manantial, is also a director of Blueberries.
Blueberries will make a strategic investment of up to C$400,000 in the construction of specialized pharmacies that are BPE (Good Elaboration Practices) certified. In addition to the pharmacies owned and operated by El Manantrial, the Company-owned pharmacies will also sell cannabis and cannabis-derived products exclusively from Blueberries. Completion of the build-out of the Company’s pharmacies is expected to occur during Q3 2019.
Letter Agreement Terms
- Collaborate on the research, development, and commercialization of Blueberries cannabis derived medicinal products.
- Blueberries to be exclusive supplier of cannabis and cannabis-derived products to El Manantial for research and sale through their medical center network and pharmacies.
- Blueberries will make a strategic investment of up to C$300,000 for the development of educational programs for the medical community to deliver to patients. The program will include certification for physicians obtained through comprehensive training, and it is expected to come online in Q2 2019.
- Blueberries will invest up to C$100,000 for medical center facility upgrades to expand capacity in order to accommodate the rapidly growing patient base.
The proposed Joint Venture is subject to completion of satisfactory due diligence by each of the Company and El Manatial, and the execution of a definitive agreement.
About El Manantial
Founded in 2013 by Dr. Andres Vidal, El Manantial offers its patients the best of conventional medicine, and the best of alternative and complementary medicine, guaranteeing the best possible patient care. A diverse team of physicians and technicians of various specialties of conventional medicine, family medicine, nutrition, aesthetic medicine, homeopathic medicine, and natural medicine, bacteriologists, paramedics, pharmacists make El Manantial a leading center of medical expertise in Colombia. As one of the fastest growing medical center network in Colombia, the goal of El Manantial is to generate equitable access for all Colombians to medical treatment. The centers are actively engaged in the research and development of new and cutting-edge treatments to meet the needs of patients. For further information about El Manantial, please visit https://centromedicoelmanantial.co/.
About Blueberries Medical Corp.
Blueberries is a Colombia-based licensed producer of naturally grown premium quality cannabis with its primary operations ideally located in the Bogotá savannah of central Colombia. Led by a specialized team with proprietary expertise in agriculture, genetics, extraction, medicine, pharmacology and marketing, Blueberries has received all licenses required for the cultivation, production, domestic distribution, and international export of CBD (cannabidiol) and THC (tetrahydrocannabinol)-based medical cannabis. Blueberries’ combination of leading scientific expertise, agricultural advantages, and distribution arrangements has positioned the Company to become a leading international supplier of naturally grown, processed, and standardized medicinal-grade cannabis oil extracts and related products.