Heritage Cannabis Poised to Grow U.S. Revenue Stream as Missouri Vote Passes Amendment to Legalize Recreational Cannabis

Heritage Cannabis Holdings Corp. (CSE: CANN) (OTCQX: HERTF) (“Heritage” or the “Company”), today announced that the recent vote to legalize cannabis in the state of Missouri is expected to have positive impacts on its recently launched U.S. strategy to enter medical and recreational legalized states in the U.S. using an asset light approach in partnership with existing local license holders.

Heritage is poised to capture a substantial share of early shelf space and revenue in the newly legalized Missouri market and will be pursuing an aggressive campaign to engage with retailers and consumers. The company aims to quickly become a market leader and pacesetter of innovation in the State.

On Tuesday, voters in Missouri approved Amendment 3 which fully decriminalizes cannabis in the state and opens the market to include recreational sales, a move that is expected to significantly expand the market. This is in addition to the medical marijuana program that was approved in 2018. With legalization in force, MJBizDaily projects sales could reach up to US$550 million in Missouri in the first year of legalization and as much as US$900 million by year four. In comparison, the Canadian cannabis market size where Heritage currently operates is US$3.4 billion in 2022 according to MJBizDaily, making the Missouri market potential approximately 25% of the entire Canadian market.

“The timing of this couldn’t be more perfect with production up and running in Missouri and products ready to ship imminently. We are very pleased with this market development and Heritage is poised to capture market share with our established brands and formulations, adding a high gross margin revenue stream to the business,” said David Schwede, CEO of Heritage. “Missouri is expected to see strong growth as legalization takes shape and Heritage is well positioned to capture a piece of this burgeoning medical and recreational market. Our leadership team is focused heavily on the State and the opportunities that it presents the Company.”

In October, Heritage commenced operations in the state of Missouri through a relationship with Como Health LLC, doing business as 3Fifteen Primo Cannabis (“3Fifteen”). 3Fifteen, a rapidly growing cannabis company with five dispensaries in operation, received an Approval to Operate from the Missouri Section for Medical Marijuana Regulation, and production on vape products and concentrates commenced in the State shortly after, with product expected to ship in the coming weeks.