- Holding company with a variety of synergistic businesses as subsidiaries
- Well-positioned to become a major player in the medical and recreational cannabis sectors
- Highly scalable business model that allows for revenue generation from a variety of sources
What Heritage Cannabis does:
Heritage Cannabis Holdings Corp (CSE:CANN) is a seed-to-sale, vertically integrated cannabis business with five operating subsidiaries. As the parent company, Heritage is focused on providing the resources for its five current operating subsidiaries to advance their products or services to compete domestically and internationally.
Based in Toronto, the company currently has two Health Canada approved licenced producers, through its subsidiaries Voyage Cannabis and CannaCure Corp, which are both regulated under the Cannabis Act Regulations.
CannaCure brings a 122,000 square foot facility that acts as a flexible space to allow for partnership opportunities, such as toll manufacturing and co-branding optionality. The Fort Erie, Ontario facility has a total indoor grow space of nearly 25,000 square feet.
Meanwhile, with a strong emphasis on cannabis oils, Voyage’s offerings include a full and unique line of cannabis products for both the medical and recreational markets. The subsidiary also has a fully licensed indoor production facility with 13 acres under ownership that is zoned for cannabis cultivation. The company operates under a seed-to-sale model that encompasses production through to retail, for both medical and recreational use.
Another subsidiary, Purafarma Solutions provides extraction services and specializes in the development of medicinal grade cannabis formulations for pharmaceutical, recreational and cosmeceutical markets. Purefarma is sought after to perform extraction by licensed producers, many of which do not have the extraction capability to meet market demands or their contractual commitments.
Meanwhile, BriteLife Sciences Ltd adds critical medicinal cannabis expertise to the company’s arsenal. The subsidiary is developing various medical-related proprietary branded products and partnerships with industry leaders in the therapeutics space.
Heritage's final subsidiary, Endocanna Health Inc, is a biotech company that provides personalized, scientifically-based resources, tools and solutions to support an optimal outcome for consumers when incorporating cannabinoid products into their health and wellness goals.
How is it doing:
Heritage Cannabis is preparing to launch new recreational and medical products in Canada and the US in 2021. The company said it is hoping to see products listed in Quebec by 2Q 2021.
In the US, Heritage subsidiary Opticann is preparing an ecommerce launch of ArthroCBD, a 25 mg softgel formulated using VESIsorb, which provides 4.5-times the absorption of other oral CBD products. Another three topical products formulated with VESIsorb for the treatment of eczema, psoriasis and local pain are being prepared for launch to reach retail over-the-counter consumers at national retailers like CVS, Walgreens, Rite-Aid, Kroeger, Walmart and Costco.
The cannabis company also recently said it had started shipping derivative products under its RAD brand to both British Columbia and Alberta for sale across authorized channels in the provinces. It has also applied for a flower sales licence from Health Canada to support the planned launch of RAD Reefer and RAD Doobies.
As of February, Purefarma and Pura Vida products were made available on the genetics site, myDNA.live. The site identifies how an individual’s specific genetic makeup interacts with cannabinoids and terpenes. The EndoDNA test, which is available on endodna.com, guides individuals based on these results and provides genetically aligned product recommendations, which will offer individuals a more optimal experience with cannabis.
A month earlier, Heritage said it received the first order from the Ontario Cannabis Store (OCS) for the aforementioned Purefarma and Pura Vida products. With these orders, the company now has three brands available in Ontario, including its recently acquired Premium 5 brand that has been available at the OCS since December 2020.
Premium 5 is a premium provider of Cannabis 2.0 hydrocarbon and solventless concentrates in Canada for which Heritage paid C$21 million in a stock deal.
Across provincial lines, Heritage announced in December that it had received its first order from Alberta Gaming, Liquor & Cannabis in order to sell its products in the province. Alberta customers will be able to purchase all seven vape cartridge products offered by Heritage.
Elsewhere, the company is working to expand into Brazil after striking a deal in December with pharmaceutical CBD product importation group CannaBR Exports Corp.
Heritage has also established contracts with minimum order quantities to deliver CBD products in bulk to CannaBR’s large distribution network in Brazil with the option to establish long-term distribution contracts.
CannaCure Corp has also entered into a binding letter of intent with Entourage Participações SA for a three-year extraction and finished product supply agreement for the distribution of pharmaceutical products in Brazil.
- Getting products listed in Quebec by 2Q 2021
- Continued sales growth in Alberta and elsewhere
- Exporting to Brazil
- $12 million financing to purchase biomass, packaging materials and equipment
What the boss says:
Heritage Cannabis CEO Clint Sharples has said he is excited to grow the company's presence in North America and abroad.
“Following on our recent announcement of a bulk CBD product supply agreement in Brazil, we are pleased to be further expanding our reach beyond Canada and the US with our full-spectrum, high-quality extractions and medical softgel capsules,” Sharples said in a January statement.
“The Brazilian market for pharmaceutical cannabis and hemp products is in a high growth phase and the Agreement with Entourage Phytolab will facilitate Heritage’s growth in 2021.”
Contact Andrew Kessel at email@example.com
Follow him on Twitter @andrew_kessel