Heritage Cannabis Announces Corporate Update and Highlights Significant Sales Growth

Rhea-AI Summary

Heritage Cannabis Holdings Corp. (OTCQX: HERTF) reports robust growth in Canadian sales, ranking #4 in concentrates, #6 in oils, and #9 in vapes. Sales growth accelerated, with unaudited August sales at approximately $2.5 million despite local forest fire disruptions. The company has made significant progress in its U.S. expansion, with construction at its Missouri facility underway. Heritage aims to penetrate 60% of the Canadian cannabis market through new product launches, expecting first revenue from Missouri in Q1 2022, further enhancing growth prospects.

Positive

• Ranked #4 in Canadian concentrates, #6 in oils, #9 in vapes.
• August unaudited sales approximately $2.5 million despite disruptions.
• Construction on Missouri facility underway, expecting first revenue in Q1 2022.
• Gained seven new listings in Ontario, totaling 16 SKUs.

Negative

• Forest fires restricted operations at Voyage facility in August.

• Heritage is now holding top 10 market share positions in each of concentrates, vapes and oils
• US expansion hits major milestone with construction underway in Missouri

TORONTO--(BUSINESS WIRE)-- Heritage Cannabis Holdings Corp. (CSE: CANN) (OTCQX: HERTF) (“Heritage” or the “Company”), is pleased to provide an update on recent sales and market share data in Canada, along with the achievement of a key milestone in the US expansion.

Recent Sales Results and Market Share Highlights¹

• #4 in Canadian Sales of Concentrates
• #6 in Canadian Sales of Oils
• #9 in Canadian Sales of Vapes
• Accelerating Sales Growth in All Key Product Categories²

“Our recent growth rates are a strong indication that the growth reported in our Q2 and Q3 financials are not a one-off occurrence. We outpaced the market by 3x and are continuing to see strong growth over the recent months,” commented David Schwede, CEO of Heritage.

	Sales Growth Of Major Licensed Producers
	Top 8 Canadian LPs by Market Capitalization	Market Cap $mm (October 15)	Jul/Aug Sequential Sales Growth	Summer* 2021 Growth Rate	CAGR February 2021 to August 2021
	Canopy Growth	6,553	-3.49%	-12.15%	-2.45%
	Tilray	6,414	-5.58%	-2.37%	0.28%
	Cronos Group	2,537	0.99%	64.31%	7.31%
	Sundial	2,101	-15.85%	-7.36%	5.44%
	Aurora Cannabis	1,735	-2.79%	-7.15%	-5.25%
	Organigram	913	-9.07%	16.23%	11.08%
	Village Farms	878	9.13%	9.57%	9.08%
	HEXO	593	-1.97%	0.77%	-0.12%
	Average	2,716	-3.58%	7.73%	3.17%
	Market		2.28%	12.92%	4.33%
	Heritage	47	19.18%	28.80%	16.25%

Source: Headset
*Summer is May 2021 – August 2021

________________________________
¹ All market share data is sourced from Headset
² Key product categories of Concentrates, Oils and Vapes

Despite restricted operations at the Voyage facility in August as a result of local forest fires in the area, unaudited sales for the month of August were approximately $2.5 million. Along with strong provincial re-orders, Heritage continues to see improvements in both market penetration and new listings, setting the stage for further growth in the coming months.

In Ontario, Heritage gained seven new listings across multiple categories, giving Heritage a total of 16 SKUs in Canada’s largest market. Sales to the OCS in calendar Q3 more than doubled over calendar Q2. Retailer feedback has been positive, and the Company anticipates adding additional SKUs in November.

Western Canada remains the largest market for Heritage, where the Company continues to see excellent re-order rates and continued acceptance for new listings resulting in additional growth. Alberta has recently executed a significant launch of Heritage products, with the Company shipping 28 new SKUs to the province in September and October. In BC, Heritage claimed 3% of total cannabis sales, while also increasing orders by 33% from calendar Q2 to calendar Q3. Orders in Saskatchewan rose by 190% sequentially in calendar Q3, with first flower products expected to be in market in November, fueling further sales growth heading into Fiscal 2022.

Flower Launch – Accessing 60% of the Canadian Cannabis Market

Heritage has launched 10 pre rolls and 6 flower skus in multiple provinces with encouraging provincial orders and plans on having distribution across Canada by the end of calendar Q1 2022. Entry into the largest market will inevitably continue to drive overall market share and revenue growth for Heritage.

US Facility Update

The facility buildout at 3Fifteen Primo Cannabis’ (“3Fifteen”) licensed manufacturing facility has begun. Construction on the extraction area is underway and the Company is evaluating equipment. First revenue in Missouri is expected in the first quarter of calendar 2022.

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.

Forward-Looking Statements

This press release contains certain "forward-looking information" within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company's beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company's control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or may contain statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "will continue", "will occur" or "will be achieved". The forward-looking information contained herein may include, but is not limited to, assumptions related to cash flow and capital resources, and expectations related to the supply and manufacturing agreements, the intended expansion of the Company, and partnerships and Joint Venture Partnerships.

By identifying such information and statements in this manner, the Company is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such information and statements.

An investment in securities of the Company is speculative and subject to several risks including, without limitation, the risks discussed under the heading "Risks and Uncertainties" in the Company's annual management discussion and analysis for the year ended October 31, 2020 and dated February 26, 2021. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information and forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended.

In connection with the forward-looking information and forward-looking statements contained in this press release, the Company has made certain assumptions. Although the Company believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward-looking information and statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by this notice.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211020005610/en/

Kelly Castledine

Tel: 647-660-2560

kcastledine@heritagecann.com

Source: Heritage Cannabis Holdings Corp.

FAQ

What recent sales results did Heritage Cannabis Holdings Corp. (HERTF) report?

Heritage reported being ranked #4 in Canadian concentrates, #6 in oils, and #9 in vapes.

How much were August sales for Heritage Cannabis Holdings Corp. (HERTF)?

August unaudited sales were approximately $2.5 million.

What is the status of Heritage Cannabis Holdings Corp.'s expansion in the US?

Construction on Heritage's Missouri facility is underway, with first revenue expected in Q1 2022.

How many new listings did Heritage Cannabis Holdings Corp. (HERTF) gain in Ontario?

Heritage gained seven new listings across multiple categories in Ontario.