Heritage Cannabis Announces Closing of the Acquisition of Premium 5 Ltd.

Nachrichtenquelle: Business Wire (engl.)
26.01.2021, 13:00  |  225   |   |   

Heritage Cannabis Holdings Corp. (CSE: CANN) (OTCQX: HERTF) (“Heritage” or the “Company”), announces that further to its press release issued on December 23, 2020, it has completed the acquisition of all of the issued and outstanding securities of Premium 5 Ltd. (“Premium 5”), a Canada-based recreational and medical cannabis company and market leader in high-quality full spectrum concentrates.

“This transaction delivers on several critical strategic objectives including immediate coast to coast sales and an impressive catalog of products for both the provincial boards and consumers across Canada,” stated Clint Sharples, CEO of Heritage. “We continue to build out our strong product development pipeline catering to multiple consumer categories and price points, and the addition of Premium 5 will expand our reach and accelerate the growth of our domestic and international platform.”

Strategic Rationale

Distribution – Premium 5 products are currently available from retailers in eight provinces, as well as one of the only concentrate brands available nationally to medical patients through both the Shoppers Drug Mart and Shelter Market platforms. These key relationships with provincial boards will be invaluable in extending market reach for all Heritage products and planned new releases.

Brands – Premium 5 is the first-to-market for several concentrate products in the legal adult cannabis market, and now has the largest concentrate product portfolio in the country with 66 unique SKUs. With the newly launched RAD brand – a first in the value hydrocarbon concentrate, flower and distillate vape categories – Premium 5 has offerings targeted to the premium, core and value segments. This breadth of portfolio establishes Heritage as a leader in strain-specific and unique, highly sought after cannabis products. This has also allowed Heritage to potentially leverage these product portfolios in markets outside of Canada.

Financial Synergies – Premium 5 has scaled revenues to an annualized run-rate of approximately $20 million under an asset light model with a small, experienced team. Heritage will optimize existing capacity to internalize many functions currently outsourced by Premium 5, increasing the EBITDA margin of an already profitable business and moving forward the timeline to positive cash flow generation for Heritage.

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Heritage Cannabis Announces Closing of the Acquisition of Premium 5 Ltd. Heritage Cannabis Holdings Corp. (CSE: CANN) (OTCQX: HERTF) (“Heritage” or the “Company”), announces that further to its press release issued on December 23, 2020, it has completed the acquisition of all of the issued and outstanding securities of …

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