Heritage Cannabis Announces Sale of Interest in Stanley Park Digital Ltd.

Rhea-AI Summary

Heritage Cannabis Holdings Corp. (CSE: CANN, OTCQX: HERTF) has announced the sale of its 18% interest in Stanley Park Digital Ltd. for approx. CDN$608,649. Initially acquiring the stake in April 2020 for CDN$340,000, the company is now refocusing on its core strengths in the recreational and medical cannabis markets. The sale proceeds are expected to be received in two tranches, with CDN$444,489 already received and the remaining CDN$164,160 anticipated within 180 days. Additionally, Heritage is working to finalize its 2021 financial statements, delayed since February 2022.

Positive

• The sale of Stanley Park Digital Ltd. for CDN$608,649 strengthens Heritage's cash position.
• The focus shift towards core cannabis business could enhance operational efficiency and growth.

Negative

• Delay in filing 2021 financial statements may raise concerns about the company's transparency and financial health.

TORONTO--(BUSINESS WIRE)-- Heritage Cannabis Holdings Corp. (the "Company") (CSE: CANN) (OTCQX: HERTF) today announced it has sold its interest in Stanley Park Digital Ltd. (“SPD”), a technology consulting company that focusses on all aspects of Blockchain technology, based in Vancouver, BC, for total cash proceeds of approximately CDN$608,649.

Heritage initially signed a Letter of Intent to acquire 20% shares in SPD in January 2018, and subsequently finalized and completed its investment for an aggregate purchase price of CDN$340,000, representing an 18% interest in SPD in April 2020. The sale of the investment is in-line with the Company’s focus on its core strengths, namely growing its recreational business and leveraging its strengths in medical channels.

Proceeds from the sale paid to Heritage were in two tranches, the first amount of CDN$444,489 has been received and the remaining CDN$164,160 is anticipated to take place in 180 days’ time.

Additionally, further to the Company’s press release on February 28, 2022 relating to the delay in the Company filing its 2021 annual financial statements and management's discussion and analysis (the "2021 Filings"), the Company continues to work diligently with its auditors to have the 2021 Filings completed. In addition, the Company is also in the process of completing its Q1 2022 financial statements and management's discussion and analysis and expects to file its Q1 2022 results shortly after the 2021 Filings are made.

About Heritage

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, feelgood., the CB4 suite of medical products in Canada and ArthroCBD in the U.S.

The Canadian Securities Exchange has neither approved nor disapproved the contents of this news release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220330005589/en/

For further information:

Kelly Castledine, Email: kcastledine@heritagecann.com, Phone: 647-660-2560

Source: Heritage Cannabis Holdings Corp.

FAQ

What was the total amount received from the sale of Stanley Park Digital Ltd. by Heritage (ticker: HERTF)?

Heritage Cannabis received a total of approximately CDN$608,649 from the sale.

When did Heritage Cannabis acquire its stake in Stanley Park Digital?

Heritage Cannabis initially signed a Letter of Intent in January 2018 and completed the investment in April 2020.

What are the anticipated next steps for Heritage Cannabis regarding its 2021 filings?

Heritage Cannabis is currently working with its auditors to finalize the 2021 financial statements and expects to file its Q1 2022 results shortly after the 2021 filings.