Blueberries Medical Corp., a Latin American licensed producer of medicinal cannabis and cannabis-derived products, is pleased to announce it has closed a non-brokered private placement offering of C$1,000,000 in principal amount of unsecured convertible debentures. The financing included a strategic investment by Mr. Facundo Garreton, a successful entrepreneur who has built and grown many businesses in Latin America and globally.
Mr. Garreton stated: “I am very happy to join the Blueberries team. I consider it to be one of the cannabis companies with the greatest potential in Latin America, not only for its productive operations in Colombia, but also for the excellent team and unique extraction capabilities, which complement other initiatives in which I am involved. I am increasingly committed to this exciting cannabis industry, in a world where more and more people are suffering from various medical conditions and scientific research suggests that cannabis has significant therapeutic potential to improve their quality of life. We will work with Blueberries on various initiatives, including research and the cannabis production value chain to help many people with ailments and with alternative solutions based on the cannabis plant.”
Camilo Villalba, Chief Executive Officer of Blueberries, stated, “We are excited to announce the strategic investment from Mr. Garreton. This investment from a successful entrepreneur with deep industry knowledge and relationships in Latin America is highly strategic and will provide significant value to Blueberries as we enter this exciting phase of our business development.”
Mr. Garreton is a successful entrepreneur in the fields of innovation, technology and life sciences, and a former member of Congress in Argentina. His successful track record as an entrepreneur includes founding InvertirOnline.com, one of Latin America’s largest online brokerage firms, as well as founding and serving as director of SociaLab and Sistema B, the most important platform for social entrepreneurs in Latin America. Mr. Garreton has invested in other cannabis companies including YVY Life Sciences in Uruguay and Flow Kana in California. Mr. Garreton is a director of various successful companies such as: YVY Life Sciences, Pachama.com, VU Security, Untech.bio, Bulltick, GoodPeople, Inipop.com and others. Also, he is an investor in companies such as ClaraFoods, TheNotCompany, Blue Planet Ecosystems, Memphis Meat, Cambridge Crops, Electro-Active Technologies (EAT), Unbox Robotics, Prellisbio.com and MycoWorks.
The Company intends to use the proceeds from the Offering for inventory production, product launch, commercialization, additional capital investments at its GMP-compliant extraction and processing facility and general working capital purposes.
The Debentures will mature 24 months from the date of closing (the “Maturity Date”) and bear interest at a rate of 13% per annum. The Debentures will be convertible at the option of the investors, in whole or in part, into common shares of the Company (the “Shares”) at a conversion price of the lower of: (i) C$0.065 per Share or; (ii) the volume-weighted average price of the Shares on the Canadian Securities Exchange (“CSE”) for the 15 consecutive trading day period ending on the Conversion Date subject to a minimum conversion price of C$0.05. Prior to the Maturity Date, the Company may prepay all or part of the outstanding principal amount of the Debenture and any accrued and unpaid interest thereon at any time and from time to time, provided that prior to such prepayment, the Company must provide the investors with at least five business days prior notice of such intention to make such prepayment at which time the investors may, but shall not be obligated to, convert any or all of the Debentures in accordance with the terms of the Debentures.
C$814,647 in principal amount of Debentures were indirectly acquired by Mr. Facundo Garreton through an investment by Glassford S.A. (“Glassford”), a company controlled by Mr. Garreton. On August 1, 2020, provided the Debentures are outstanding or, upon conversion of the Debentures into Shares, as long as Glassford holds at least 8% of the issued and outstanding Shares, Blueberries will appoint an individual identified by Glassford as a director of the Company and nominate this individual as a director at future annual shareholder meetings of the Company.
Mr. Facundo Garreton currently exercises control over 2,110,125 Shares, representing approximately 1.71% of the Company’s issued and outstanding Shares. Following completion of the transaction, Mr. Garreton will own, on an as converted basis (presuming his Debentures are converted at a price of C$0.065 per Share) 14,643,155 Shares, representing approximately 10.75% of the outstanding Shares assuming the conversion of his Debentures.
Blueberries is a Latin American licensed producer of naturally grown premium quality cannabis with its primary operations ideally located in the Bogotá Savannah of central Colombia.
Additional information about the Company is available at www.blueberriesmed.com.