This former congressman is betting big on the cannabis industry

From Ulises Román Rodríguez via El Planteo.

In a paraphrase of Julio Cortázar one could say: “Garretón / a model to assemble”. Born in the province of Tucumán in northwest Argentina, Facundo Garretón is an exemplary entrepreneur. He is a man who leads his life in cycles that keep making him switch jobs. He likes to study, learn and expand on everything he does.

He became a famous entrepreneur in the IT world when he created the Invertir Online website. And in 2015 he ventured into politics and was elected a congressman.

At the end of his mandate, he returned to what motivates him most: starting a business. And not just any company: this time he ventured into the production of cannabis for medical purposes at Yvy Life Sciences, a Uruguay-based company.

But what made Facundo invest in cannabis?

“I have been an angel investor in various high-risk companies in sectors such as life sciences and biotechnology for several years. In 2017, while I was in Congress, I had the opportunity to help regulate the cannabis industry, ”Garretón said in an interview with El Planteo from his home in Uruguay, where he currently lives.

From that moment on, he began to study comparative legislation and learn what was happening in other countries around the world in relation to cannabis.

“I found the sector to be very attractive to invest in because I was aware that it was developing and not yet mature.”

With an entrepreneurial sixth sense, Garretón discovered that a great opportunity was right under his nose.

“Latin America has great potential, so right after my tenure in Congress I started getting involved in the industry, analyzing more than 300 cannabis companies,” he says.

He made his first investment in early 2020: YVY Life Sciences in Uruguay.

The production chain

Facundo Garretón invested in several companies, each of which focused on a segment of the cannabis production chain.

For example, YVY Life Sciences focuses on planting and processing: of seeds, genetics, cultivation, flowering, harvesting, primary processing, flower separation, classification, drying, storage and flower export.

Following this logic, Facundo invested in Blueberries Medical Corp. (OTC: BBRRF) in Colombia, a company focused on oil extraction, laboratory testing and mastery of specific formulations.

“I founded Blueberries as CEO and am now the chairman. Blueberries is a fully operational company based in Colombia but listed on the Canadian Stock Exchange, ”he told El Planteo.

Eventually he started a company called DrGea.com to sell and distribute cannabis-based products that would be “the last link” in the production chain.

Susana’s mansion

In February 2021, Facundo Garretón announced on his Instagram account: “We bought (Susana Giménez ‘) house @gimenezsuok to build a wellness center and a cannabis development center in Uruguay.”

His post bounced off the media because on the one hand it was the mansion of one of the most famous showbiz characters in Argentina and on the other hand the company was involved in marijuana.

“The opportunity to buy this mansion from Susana Giménez came about and we considered building a cannabis center with plantations, a boutique hotel, a spa and a restaurant specializing in cannabis eating,” says Garretón.

The model would be like the one offered by the wineries on the Wine Route in Argentina, where you can learn about the elaboration processes through to tasting.

“It’s a medium and long term bet, Uruguay is the first country in the world to regulate the industry, it has to have a cannabis center with these characteristics and we are in the process of building the first cannabis center of its kind in Latin America (safe) and probably in the world. “

An entrepreneur’s vision

“The cannabis industry is a developing industry that is constrained by regulatory issues, and we still have a few years to go before we can turn it into real business,” says the entrepreneur from Tucumán.

“In fact, all cannabis companies are losing a lot of money and investing in the future.” Garretón connects the emerging cannabis industry with the beginnings of the internet in the late 1990s. “Everyone wanted to invest in .com, but few were able to make money. In fact, for many years .com companies lost money and hundreds of thousands of companies disappeared. “

However, those who stayed, “those who invested well, who did things right, are the big companies of today, from Amazon to Mercado Libre”.

How do you see Argentina in the market?

We hope the medical and industrial cannabis issue is well regulated, but Argentina lags behind compared to other countries on the continent.

How do you think the country could consolidate in the cannabis industry?

Argentina should regulate the three verticals. That is, not only medical and industrial, but also leisure and participate in the regulation of the entire value chain of production, not only in pharmaceutical and medical products, but also in beauty products, food, beverages, wellness and all basic parts from the Fibers of the plant, flowers and seeds.

What would you recommend to people looking to invest in the cannabis industry?

Know that this is a complex, super difficult, long-term business that requires big backs and deep pockets. In the years to come, many firms will be formed, many firms will close, thousands of entrepreneurs will collapse, so one has to be careful and careful about investing and investing with people who know the industry and the business, who have knowledge of the business and not necessarily have the knowledge of the system.

A personal relationship with cannabis

Facundo Garretón is a member of a cannabis club in Uruguay. Every three months they harvest special genetics. “Just to try different strains, which I love, but the truth is, I’m not a big cannabis user.”

However, he admits that “because I am connected to the industry, I have access to a lot of very interesting products”.

He also says that his wife “takes CBD drops” and that his mother “uses some cannabis-based creams for neck pain” and that several members of his family “use different types of cannabinoids”.

Photos by Lelen Ruete for YVY Life Sciences.

This article originally appeared on El Planteo and was republished with permission.