Heritage Cannabis Announces Corporate Update and Highlights Significant Sales Growth and New Products - Seite 2

In Ontario, Heritage gained new listings across multiple categories, giving Heritage a total of 19 SKUs in Canada’s largest market, with nine additional SKUs coming to the OCS in the spring – a strong signal on the sell-through the province is seeing with Heritage brands.

As a result of the successful completion of the milestone set out in the Premium 5 acquisition agreement, Heritage has issued 107,142,858 common shares.

Flower and Pre Rolls

In 2021, Heritage launched ten pre rolls and six flower SKUs in multiple provinces with encouraging provincial orders, resulting in the category making up 19% of our portfolio sales within a short time-frame. Heritage will be further diversifying our portfolio by adding 12 new SKUs to the flower product line-up during the summer, including infused products from the Pura Vida and RAD lines, which have had a strong and increasing following.

Based on US data, pre-roll products make up 11% of sales in California, and the sale of infused pre rolls make half, or 5.5%, of the pre roll category². In Canada, pre rolls make up 16% of current market sales, and based on this data a potential 8% market for infused pre rolls. With these infused product launches and successful sell through of our products to date, Heritage is well positioned for strong growth in this area and plan to be a leader in the category, contributing to further growth in revenue.

US Expansion Update

With the financial backing of Merida Capital, Heritage has made significant progress on the licensed manufacturing facility build-out in support of the relationship with 3Fifteen Primo Cannabis in the state of Missouri. With the project now fully-funded, the Heritage team has progressed with equipment orders, and is establishing the biomass supply chain for the facility. Production is expected to begin in the spring of 2022, with revenue from the sale of branded products to medical cannabis consumers in Missouri following shortly after.

Based on strategic imperatives and due diligence activities, Heritage management has decided to no longer pursue the acquisition of Capna Intellectual/dba Bloom Brands, and instead will focus efforts on current U.S. activities that better align with short and long term goals.

About Heritage Cannabis Holdings Corp.
Heritage Cannabis is a leading cannabis company offering innovative products to both the medical and recreational legal cannabis markets in Canada and the U.S., operating under two licensed manufacturing facilities in Canada. The company has an extensive portfolio of high-quality cannabis products under the brands Purefarma, Pura Vida, RAD, Premium 5, feelgood., the CB4 suite of medical products in Canada and ArthroCBD in the U.S.