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Heritage Cannabis is pioneering the seed-to-sale cannabis model

Snapshot

The cannabis holding company has four unique, synergistic business under its umbrella

cannabis leaf next to bottle

Quick facts: Heritage Cannabis

Price: 0.32 CAD

CSE:CANN
Market: CSE
Market Cap: $151.56 m
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  • Holding company with four unique, synergistic businesses under its umbrella

  • 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

  • Experienced management team who have built out brands in Canada and the US


What the company does

Heritage Cannabis Holdings Corp (CSE:CANN) is a seed-to-sale, vertically integrated cannabis business.

Based in Toronto, the company currently has four businesses under its umbrella that run the gamut from extraction to production.

Heritage’s subsidiaries Voyage Cannabis Corp and CannaCure Corp are both Health Canada-approved licensed cannabis producers, while Purafarma Solutions provides extraction services and BriteLife Sciences focuses on the medical market.

Since its inception nearly five years ago, the last six months have been some of the busiest for the cannabis company. Milestones include a new supply agreement with CannTrust, a $7.5 million financing and the acquisitions of CannaCure and Purafarma.

CEO Clint Sharples explained Heritage’s strategy amidst the unfolding cannabis landscape in North America in a recent interview with Proactive.

“Although you see companies out there with billions of dollars market capitalization, there is no set company with a footprint in the market,” he said. “Everything is up for grabs. We want to make sure that we’re going to be (an important) player in the areas of the industry that are significant, which includes grow, extraction, medical services and the products that we can make.”

The four pillars

Purafarma Solutions Inc is at the centre of the Heritage strategy. As an industry-leading extractor with a scientific approach to processing, the company has an existing supply agreement for 1,600 acres of hemp available through partner farmers and is ready for the 2019 consumer market.

The Purafarma team will expand its premium CBD and THC oil offerings within the Heritage licensed producer infrastructure, bringing state-of-the-art extraction and distillation equipment with proprietary customization under the Heritage umbrella.

Licensed producer CannaCure Corporation brings a 122,000 square foot facility that will act 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.

Voyage Cannabis Corp 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.

BriteLife Sciences Ltd is the newest addition to Heritage’s portfolio, adding the critical medicinal cannabis expertise to the company’s arsenal. The subsidiary will introduce various medical-related proprietary branded products and partnerships with industry leaders in the therapeutics space.

Upcoming catalysts

Heritage isn’t slowing down after a busy 2018. The company has a long list of milestones it is planning to hit in 2019 and a number already under its belt, including receiving Voyage’s processing and sales license and launching its medical cannabis division.

The company hopes to start generating revenues from its extraction activities by 2Q. Voyage is also expected to be a source of revenue in the second quarter after it completes its first harvest. At CannaCure, look for Phase 2 construction of the dedicated extraction room to begin, and at BriteLife, signing partnerships for medical cannabis education is expected.

A big upcoming milestone is the launch of Heritage’s first retail location, subject to provincial license approval. If all goes according to plan, the company will open its location by the end of 2019.

CEO Clint Sharples is also enthusiastic about the potential that edibles hold within Heritage’s longer-term strategy. In a recent interview with Proactive, he said that the company will look for more joint venture partnerships with companies that will help to launch Heritage as an edibles player when Health Canada legalizes the product.

“All of us on the edibles side are looking at what health benefits could be derived from these products,” he said in the interview. “Edibles will be huge, as will the oils and derivative products.”

Contact Angela at [email protected]

Follow her on Twitter @AHarmantas

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