Heritage Cannabis Reports Q1 2023, Achieving Continued Growth in Gross Margin for the Quarter

Heritage Cannabis Holdings Corp. (CSE: CANN) (OTCQX: HERTF) (“Heritage” or the “Company”), today announced its financial results as at and for the three-month period ended January 31, 2023. All figures are in Canadian dollars unless otherwise noted.

“In a traditionally slow period, we are very pleased to have achieved gross margin growth - evidence our continued focus to lower our operational costs has been effective. Even with a number of our achievements expecting to positively impact our operations in the coming months, such as our Thrifty brand launch and U.S. investments, we are continuing to remain focused on cost management while improving our market penetration in our core markets”, said David Schwede, CEO of Heritage. “While this past quarter we saw provincial pricing that negatively impacted our results, we feel the majority of this reset is now behind us and we can focus on continued growth by leading in market innovation, focusing on growing our entire portfolio of in-demand products. With our U.S. strategy ramping up and early indications showing positive results ahead of expectations, we are well positioned to see an up-trend in the business in 2023.”

Selected Financial Highlights

Selected financial highlights for the three-month periods ended January 31, 2023 and 2022 include the following:

(in $CDN)	Jan 31, 2023 $	Jan 31, 2022 $
Gross revenue	9,446,995	9,596,141
Net revenue (net of excise tax)	6,323,412	6,541,211
Cost of sales	4,272,251	4,656,450
Gross margin	2,051,161	1,884,761
General and administrative expenses	4,647,547	5,160,498