South America is a key cannabis market investors need to have exposure to

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During the last year, the Latin American cannabis market has been a major area of interest and this is a trend that we are excited about. When you compare the cost of cultivating cannabis in North America to Latin America, the economics associated with the Latin American opportunity are much more attractive and we are bullish on the growth prospects associated with this emerging market.

Over the next year, we expect to see further interest in the Latin American cannabis opportunity as companies that are levered to this market prove that there is significant value associated with this market. Currently, there are only a handful of companies that have legitimate leverage to this emerging cannabis market and investors need to be aware of this. We are most excited about the companies that have a first-mover advantage on the Latin American cannabis market and want to highlight an early-stage opportunity to be aware of.

The company, Blueberries Medical Corp. (BBM.CN) (BBRRF) (1OA) has significant leverage to the cannabis oil opportunity in Latin America and has set up operations in Colombia and Argentina. Going forward, the name of the game for this Latin American cannabis company is execution and expansion. Over the next year, we expect to see Blueberries Medical significantly expand its reach and enter new emerging cannabis markets.

When it comes to Blueberries Medical, there are a number of factors that make us excited about this opportunity and we have highlighted these below:

  1. The company has attractive leverage to the Latin American cannabis market and is focused on producing high-margin premium cannabis oil
  2. With operations in Colombia and Argentina, the company has significant growth prospects and is in the middle of a major expansion
  3. The company has made significant additions to the management team and we are favorable on the team’s ability to execute and create value for shareholders
  4. Blueberries Medical has secured strategic relationships to support growth and find this partnership to be significant when it comes to the company’s long-term opportunity
  5. When compared to its peers, Blueberries Medical has an attractive valuation and is trading at a fraction of their market caps

An Emerging Latin American Cannabis Opportunity

2019 has already proven to be a banner year for Blueberries Medical and we are not even at the mid-point. So far this year, the company has advanced operations in a number of ways and we are excited about the recent developments. From a larger production footprint to strategic additions to the management team, the company has significantly improved its position in the Latin American cannabis market and we are favorable on its growth prospects.

Blueberries Medical is a fully licensed producer of medical cannabis flower and oil products in Colombia that has recently expanded into Argentina through a binding agreement to acquire cannabis cultivation, processing, manufacturing, export and other rights in Argentina from BBV Labs Inc., which has entered into a joint venture with the Argentinian state-owned company Cannabis Avatara, S.E., to develop and cultivate cannabis on a 3.2 million sq. ft. agricultural property. The Latin American cannabis company has been focused on expanding its state-of-the-art facilities that are going to be Good Manufacturing Practices (GMP) compliant and we are bullish on the growth prospects associated with this. Being GMP compliant is necessary when it comes to being able to export medical cannabis to international markets and we are favorable on this focus.

One of the reasons we are excited about Blueberries Medical is due to its focus on the cannabis oil opportunity. Demand for cannabis oils continues to increase and this is a trend that we expect will continue as researchers learn more about the therapeutic value of cannabinoids. We believe that the cannabis oil vertical represents one of the most significant markets and are favorable on Blueberries Medical’s leverage to this opportunity. When compared to cannabis flower, the margins and the prices associated with cannabis oil are much more profitable for the company and we find this to be important.

Attractive Leverage to the Colombian Cannabis Market

Blueberries Medical has attractive leverage to the Colombian cannabis market and its current facility (Guatavita Farm) is located in the Bogota savannah, a major production center in Colombia. The company has secured 3 hectares of land for the first facility and plans to build-out half of this property (1.5 hectares) in 2019. This facility is strategically located in one of the safest regions of Colombia and is in an area that has scalable cultivation infrastructure.

The Latin American cannabis company is also focused on expanding at its Zipaquira Farm and this represents a massive opportunity. This initiative has a much larger land package and provides the company with 15 hectares to operate on. Blueberries Medical has the ability to increase the size of this land package to 40 hectares and this would be a massive farm.

Earlier this year, Blueberries Medical entered into a letter of intent for a joint venture with Harmony and Life S.A.S., operating as El Manantial medical centers. The joint venture will further the development and commercialization of Blueberries Medical’s products through El Manantial’s rapidly growing patient base and through a collaboration with its team of physicians, pharmacists and technicians.  The joint venture provides a direct distribution channel to an established and rapidly growing patient base by exclusively selling Blueberries’ cannabis-derived products.

We believe that this relationship significantly enhances Blueberries Medical’s ability to distribute products in Colombia and will monitor how this initiative adds value. El Manantial represents a strategic partner and is one the fastest growing networks of medical centers in Colombia. The medical centers are currently representing over 7,000 patients and this number is expected to increase to more than 50,000 patients over the next 36-month period as four new centers are expected to come online.

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