Heritage Cannabis Holdings Corp (CSE:CANN) (OTCQX:HERTF) (FRA:2UE) reported the launch of a new Premium 5 brand RAD, in connection with its pending acquisition of Canadian recreational and medical cannabis company Premium 5 Ltd.
The company said RAD is being introduced in response to consumer demand for more affordable cannabis concentrate offerings.
“There is a strong market for our product offerings through Premium 5, but we acknowledge the growing consumer demand for more affordable concentrate offerings,” said Premium 5 CEO David Schwede in a statement.
READ: Heritage Cannabis buys full spectrum cannabis concentrate producer Premium 5 for C$21M in stock
He added: “With RAD, we aim to leverage our strong reputation to delight our consumers with quality products at a value price point.”
Heritage Cannabis noted that RAD is entering the Canadian cannabis market with 21 stock-keeping units (SKUs), or scannable bar codes, with plans to launch a number of new SKUs in the coming months.
It added that products have now been ordered and shipped into Alberta and British Columbia and are soon expected to be going into the remaining provinces and territories.
The company also said it has terminated its previously-announced term sheet with Cannahive Inc dated August 18, 2020, as the two companies were unable to settle the terms of the definitive joint venture agreement.
Heritage added that it is now pursuing various alternative options for edibles.
The company announced in late December a deal to acquire Premium 5 Ltd in consideration for C$21 million of Heritage Cannabis stock, with the potential for an additional C$20 million in Heritage shares should certain revenue growth and gross margin milestones be met over the next 24 months.
Heritage said demand for Premium 5 products has resulted in provincial purchase orders nearing C$10 million since launching sales in June 2020 and growing each month to an annualized run-rate of about $20 million.
Heritage Cannabis is a vertically-integrated cannabis provider that currently has two Health Canada approved licensed producers, through its subsidiaries Voyage Cannabis Corp. and CannaCure Corp., both of which are regulated under the Cannabis Act Regulations.
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