Heritage’s second state in the U.S. begins sales with full revenue ramp-up in Missouri and West Virginia expected in 2023
TORONTO, January 04, 2023–(BUSINESS WIRE)–Heritage Cannabis Holdings Corp. (CSE: CANN) (OTCQX: HERTF) (“Heritage” or the “Company”), is pleased to announce that it has completed its first production run and shipment of products to dispensaries in the State of Missouri. This marks the start of Heritage product sales in the second state in the United States, with products now available in both Missouri and West Virginia. Products available to purchase in the U.S. include RAD distillate vapes, RAD live resin and live rosin, with additional products in the pipeline including pre-rolls and blunt, infused pre-rolls and blunts as well as concentrate dispensers.
This is the second milestone achievement in Heritage’s U.S. strategic plan, and with further expansion into additional states on the horizon, we are poised to capture market share with our established brands and formulations. 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 the recent successful legalization of cannabis in the state of Missouri we are thrilled to be ahead of the curve with products on shelves ready to serve both medical and recreational consumer groups in the State,” said David Schwede, CEO of Heritage. “Our U.S. strategy is adding a high gross margin revenue stream to the business using an asset light approach in partnership with existing local license holders, and as a market leader and innovator we continue to launch new products to capture a substantial share of early shelf space in these burgeoning markets.”
On December 8, 2022, recreational cannabis use became officially legal in Missouri, 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.
About Heritage Cannabis Holdings Corp.
Heritage Cannabis is a leading cannabis company offering innovative products to both the medical and recreational legal cannabis markets in Canada and the U.S., operating under two licensed manufacturing facilities in Canada. The company has an extensive portfolio of high-quality cannabis products under the brands Purefarma, Pura Vida, RAD, Premium 5, Thrifty, feelgood., the CB4 suite of medical products in Canada and ArthroCBD in the U.S.
ON BEHALF OF THE BOARD OF DIRECTORS OF HERITAGE CANNABIS HOLDINGS CORP.
David Schwede, CEO
The Canadian Securities Exchange has neither approved nor disapproved the contents of this news release.
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