The Cannabis Market Continues its Expansion Around the Globe

NEW YORK, Feb 7, 2019 /PRNewswire/ -- In the U.S., states are given the right to dictate whether cannabis can be legal for medical or recreational use, or even both. However, cannabis still remains a Schedule 1 drug according to federal law. Regardless, the U.S. is expected to dominate the global cannabis industry, as it accounted for 90% of the market value in 2016. The U.S. marketplace has made it appealing for companies to establish businesses operating within the country as the industry is gaining global traction now. In particular, this has prompted companies to expand internationally. According to data compiled by Mordor Intelligence, the global cannabis market was valued at USD 7.7 Billion in 2016 and is expected to reach USD 65 Billion by 2023. Additionally, the market is projected to register a CAGR of 37% during the forecast period. The growth of the industry is primarily due to growing adoption and support of legalization in markets like Europe and South America. Furthermore, the North American region is still expected to control almost the entire recreational market. Blueberries Medical Corp. (CSE: BBM), PharmaCielo Ltd. (OTC: PHCEF), Cronos Group Inc. (NASDAQ: CRON), KushCo Holdings, Inc. (OTC: KSHB), Plus Products Inc. (OTC: PLPRF)

The U.S. may represent a strong growth opportunity for cannabis-based companies, but many are building operations in Latin America. The LATAM region is highly attractive to cannabis cultivators due to the low costs and fertile growing conditions associated with it. Lower costs will allow industry players to produce cheaper cannabis while meeting global demand. Countries like Colombia, Argentina, Uruguay, Peru are among the several countries where companies have already, or are beginning to, establish operations. According to Prohibition Partners, the LATAM region is expected to deliver legal cannabis sales of approximately USD 12.7 Billion by 2028. "Latin America has a prospective market of over 500 million adult use customers and 4.3 million patients, making it a core priority in cannabis companies' global strategy. Its low-cost agricultural exports and increasing support for the legalization of recreational cannabis means it could play a pivotal role in the international cannabis industry," said analysts at Prohibition Partners.

Blueberries Medical Corp. (CSE: BBM) earlier this week announced breaking cannabis news that, "the completion of its business combination with Blueberries Cannabis Corp. (the "Private Company"), a leading Colombia-based licenced producer of medicinal cannabis and cannabis-derived products (the "Transaction"). Trading in the common shares of Blueberries (the "Blueberries Shares") is expected to commence on the Canadian Securities Exchange (the "CSE") at market open on Wednesday, February 6, 2019 under the symbol "BBM", following the issuance by the CSE of its final bulletin in respect of the Transaction, expected today.

"Our public listing in Canada marks the accomplishment of another important milestone for Blueberries as we continue to execute on our vision of becoming a leading producer of premium quality medicinal cannabis products internationally," stated Christian Toro, Chief Executive Officer. "Combining Canadian leadership in the cannabis industry, strategic global relationships and Colombian passion and expertise, at Blueberries Medical we do things better."

Operational and Corporate Update: Blueberries is continuing to advance its developments to become a large-scale producer of naturally grown premium quality cannabis with its primary operations well situated in the Bogotá savannah in central Colombia. Lead 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.

Since the Transaction was initially announced on September 6, 2018, the Company has continued to execute on its strategic objectives. Key developments include:

• Receipt of cultivation license, making Blueberries fully licensed for cannabis cultivation, processing/extraction and export in Colombia and abroad.
• Completed a C$8,807,500 private placement, leaving the Company well capitalized to execute on its growth strategy (see "Subscription Receipt Financing" below).
• Pre-registration completed for 134 exclusive cannabis strains with high contents of CBD & THC.
• Commencement of cultivation in 107,000 ft2 open-air greenhouse facility with commercial production anticipated in Q4 2019.
• Significant international sale and distribution agreements have been put in place for current products and products under development.
• Entered into a binding letter of intent with Harmony and Life SAS, a leading wellness clinic in Colombia pursuant to which the clinic will collaborate with Blueberries on the research, development, commercialization and distribution of cannabis-based products.
• Continued to further strengthen the Company's management and operational teams (See "New Board and Management" below).

Additional strategic milestones which the Company is continuing to pursue include:

• Expansion of the Company's cultivation facility has begun with the goal of growing to approximately 861,000 ft2 by the end of 2019 to meet expected immediate demand. Blueberries has capacity to increase its cultivation capacity up to approximately 120 hectares (~13 million ft2) of total cultivation capacity.
• Engineering and design for a cannabis oil extract processing facility to provide for near-term oil production, with additional space to accommodate modular increases in production capacity as demand for the Company's products grows.
• Continue to expand product portfolio.
• Negotiation of additional sales and distribution agreements.

About Blueberries Medical Corp: Blueberries is seeking to become a large-scale producer of naturally grown premium quality cannabis with its primary operations well situated in the Bogotá savannah in central Colombia. Lead 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."

PharmaCielo Ltd. (OTC: PHCEF) is a global company, headquartered in Canada, with a focus on ethical and sustainable processing and supplying of all natural, medicinal-grade cannabis oil extracts and related products to large channel distributors. PharmaCielo Ltd. recently announced its entry into the Mexican market through an equity joint venture with MINO Labs S.A. de C.V., a specialty pharmaceutical company and medical supply distributor based in Mexico, based on an agreement signed on January 25, 2019. The JV is called PharmaCielo S.A. de C.V. The announcement marks a key milestone in PharmaCielo's plan to become a leading global exporter of high-quality medicinal-grade cannabis oils and derivative products. Cannabis oil delivery under the JV to the Mexican market is expected to commence in Q4 2019, subject to the JV and PharmaCielo obtaining the requisite registrations and licenses. PharmaCielo's ability to carry out the contemplated business under the JV will be subject to the approval of the TSX Venture Exchange. "We are thrilled about the opportunity to join forces with MINO. Ultimately, our plan is to bring our high-quality cannabis oils to Mexico," says David Attard, Chief Executive Officer of PharmaCielo. "Our premium quality oils are extracted from proprietary strains of dried flower at flower cost levels below USD 0.05 per gram. This enables us to focus our efforts and financial investment on the creation of the highest-quality oil-based health and wellness products, which when combined with the expertise of Mino Labs, will enable the JV to participate in the advancement of the medicinal cannabis industry in Mexico."

Cronos Group Inc. (NASDAQ: CRON) is a globally diversified and vertically integrated cannabis company with a presence across four continents. Cronos Group Inc. recently announced that it has entered into a joint venture agreement with an affiliate of Agroidea SAS, Colombia's leading agricultural services provider with over 30 years of research, development and production operations. This partnership establishes a newly formed entity, NatuEra S.à r.l., in Colombia that will develop, cultivate, manufacture and export cannabis-based medicinal and consumer products for the Latin American and global markets. "We searched extensively for the right partner in Latin America. In AGI we have found an executive team with immense experience in running large scale horticultural operations and serving the needs of large, sophisticated international clients which will be crucial in establishing consistent and efficient supply chains for cannabinoid based products," said Mike Gorenstein, Chief Executive Officer of Cronos Group. "By leveraging AGI's expertise and Cronos Group's cannabis know-how, NatuEra will enable Cronos Group to create a cultivation and manufacturing hub in Latin America for our global distribution channels in a manner that minimizes region-specific and execution risk."

KushCo Holdings, Inc. (OTCQB: KSHB) is the parent company to a strategically integrated group of business units that are transformative leaders across several industries. KushCo Holdings, Inc. recently announced it has entered into a number of long-term supply arrangements-in-principle with regard to three large, well-known new customers. The Company believes these long-term supply arrangements (with expected terms of one to three years) will not only create lasting partnerships with these new customers, but also are expected to provide the Company with an aggregate value of up to USD 75.0 Million of new revenue over the next three years, while providing more supply chain certainty for all parties involved. Jason Vegotsky, Kush Supply Co.'s President commented, "We are witnessing a rapid evolution of our customer base as the large multi-state operators continue to gain scale and prepare for additional market legalization. As the leading provider of ancillary products and services into the US and Canadian cannabis markets our customers count on us to provide security of supply so they can maximize their market opportunities. It is therefore vital we have the products they need, readily available and in the ever-increasing quantities they require. These long-term supply arrangements, once implemented, will establish a working partnership such that both parties can achieve the maximum benefit in this dynamic market environment."

Plus Products Inc. (OTCQB: PLPRF) is a leading branded products manufacturer based in California. Recently, Plus Products Inc., the leading cannabis edibles brand in California announced that it has signed a definitive agreement whereby PLUS™ intends to acquire the assets of California-based cannabis-infused baked goods brand GOOD CO-OP, INC. in an all share transaction. PLUS is the largest edibles brand in California and has been focused on leading the largest edibles category: gummies. This acquisition represents a strategic entrance for PLUS into a second edibles category, baked goods, allowing for greater market share in the edibles market. GOOD (good-coop.com) is a premium edibles brand focused on creating delicious cannabis-infused brownies and baked goods. Committed to offering the best taste, flavor profile and quality without using additives or preservatives, GOOD's products, including bite size brownies and pumpkin spice blondies, have been featured in Fortune, Vice Magazine and Eater. "We grew PLUS into the top edibles company in California by leading with our product. We have focused on manufacturing consistent, high quality edibles that resonate with consumers," said Jake Heimark, Co-Found and Chief Executive Officer of Plus Products "The GOOD team has been focused on the same. This acquisition accelerates our time to market in the baked goods category, and will help solidify the PLUS leadership position in edibles. We are committed becoming the largest edibles brand in all legal jurisdictions by continuing to lead with product, and we look forward to Mike, Pete and the GOOD team helping us build toward that vision."

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