Heritage Cannabis Announces Changes to the Board of Directors and Transition to a New Chief Executive Officer

Rhea-AI Summary

Heritage Cannabis Holdings Corp. has announced significant changes to its leadership, with Donald Ziraldo resigning from the Board and Clint Sharples stepping down as CEO. David Schwede, previously President of Recreational, has been appointed as the new CEO. Schwede, known for scaling Premium 5 to profitability, is expected to drive sequential revenue growth and expand distribution, including U.S. market entry by year-end. Max Gerard has also resigned from the Board but will continue as an advisor while awaiting regulatory clearance.

Positive

• David Schwede's appointment could lead to sequential revenue growth and increased market presence.
• Schwede has a successful track record in the cannabis industry, having positioned Premium 5 as a top brand.

Negative

• Donald Ziraldo's resignation may raise concerns about continuity in leadership.
• Max Gerard's resignation could indicate regulatory hurdles affecting Board stability.

Heritage Cannabis Holdings Corp. (CSE: CANN) (OTCQX: HERTF) (“Heritage” or the “Company”), announces changes to its board of directors (the “Board”) and appointment of a new Chief Executive Officer (“CEO”).

Donald Ziraldo has recently resigned from the Board of Directors and his position as Chair for personal reasons and to pursue other business initiatives. The Company wishes to thank Mr. Ziraldo for his contributions and guidance in shaping Heritage and wishes him every success in his future endeavours.

Clint Sharples will assume the position as chair of the Board, and in conjunction with this, Mr. Sharples has stepped down as CEO of the Company. The Board has appointed David Schwede as his successor in the role of CEO. Mr. Schwede originally joined Heritage as President of Recreational following the acquisition of Premium 5. Prior to joining the Company, Mr. Schwede was CEO of Premium 5, and was a member of Senior Management at Aurora Cannabis. With a history as CEO of tech start-ups, he is an entrepreneur who has successfully operated and scaled multiple businesses that have won several start-up awards including one of Forbes start-ups to watch for 2019. Notably, his most recent success was scaling Premium 5 to a profitable, top concentrate brand in nine months and increasing revenues, national distribution and market share since joining Heritage as the President of the Recreational division.

“I am very pleased to hand the CEO role to David at a pivotal and exciting time for Heritage,” stated Clint Sharples, chair of the Board. “David has a long track record of success in the cannabis space, innovating unique products and applying his entrepreneurial spirit to execute on growth strategies. Over the past six months, David has demonstrated that he is capable of leading this company and I have full confidence that he will successfully take Heritage to the next level.”

“Since day one, Heritage has proven to be the platform on which to build a successful house of brands. I am very excited and honored to be given the opportunity to continue to build on the success of the new Heritage,” stated David Schwede, CEO of Heritage. “As we move into the next phase of our exciting journey, I am confident we will continue to see sequential revenue growth, further distribution nationally, and a presence in the U.S with products on shelves by the end of the year, all while keeping the path to profitability as our core focus.”

Max Gerard, a Partner at Merida Capital Holdings (“Merida”) has resigned as director from the Board pending security clearance by Health Canada which is a requirement for appointment as a board member and will retain a position as an advisor to the Board. Merida, a large strategic shareholder in Heritage will maintain an active role in the Company and continue to support the advancement of Heritage’s Canadian and U.S. strategy. and Merida will take a role on the board in the future once regulatory clearance is awarded. In Mr. Gerard’s place, David Schwede, Heritage’s incoming CEO has been appointed as a director of the Board.

About Heritage Cannabis Holdings Corp.

Heritage 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, feelgood., CB4 and ArthroCBD.

ON BEHALF OF THE BOARD OF DIRECTORS OF HERITAGE CANNABIS HOLDINGS CORP.

“David Schwede”

David Schwede
CEO

The Canadian Securities Exchange does not accept responsibility for the adequacy or accuracy of this release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210804005640/en/

FAQ

What changes were announced in Heritage Cannabis Holdings Corp's leadership?

Heritage announced the resignation of Donald Ziraldo from the Board, Clint Sharples stepping down as CEO, and David Schwede being appointed as the new CEO.

Who is the new CEO of Heritage Cannabis Holdings Corp.?

David Schwede has been appointed as the new CEO, previously serving as the President of Recreational at Heritage.

What is David Schwede's experience prior to becoming CEO?

David Schwede was CEO of Premium 5 and has a history of successfully scaling businesses in the cannabis sector.

What impact could the leadership changes have on Heritage Cannabis Holdings Corp.?

The changes could drive revenue growth and expand market presence, particularly in the U.S. market.

What happened to Max Gerard in the Board of Directors?

Max Gerard resigned from the Board pending security clearance by Health Canada but will remain as an advisor.