Heritage Cannabis Begins Operations in West Virginia Through Relationship with Harvest Care Medical, LLC

Rhea-AI Summary

Heritage Cannabis Holdings Corp. (CSE: CANN, OTCQX: HERTF) is expanding its operations into West Virginia after Harvest Care Medical, LLC obtained its processing license. This marks Heritage's second U.S. state of operation, with plans for growth in six more states. The company's asset-light strategy enables efficient production and distribution of cannabis products, capitalizing on favorable market conditions. CEO David Schwede highlighted the company’s growth trajectory and anticipated further revenue streams as the U.S. leans towards cannabis decriminalization.

Positive

• Expansion into West Virginia signifies growth potential.
• Two operational dispensaries through partnership with Harvest Care.
• Asset-light strategy enhances cost-effective operations.
• Existing brands are highly sought after in legal markets.

Negative

• None.

Heritage’s U.S. strategy is gaining momentum as the U.S. moves toward changing federal classification of cannabis

TORONTO--(BUSINESS WIRE)-- Heritage Cannabis Holdings Corp. (CSE: CANN) (OTCQX: HERTF) (“Heritage” or the “Company”), is pleased to announce that it is commencing operations in the state of West Virginia after Harvest Care Medical, LLC (“Harvest Care”), recently received its processing license from the West Virginia Office of Medical Cannabis. Initial production on vape products and concentrates has already commenced in the State. West Virginia’s Medical Cannabis Act was signed into law in 2017 and the state saw its first legalized medical sales in the fall of 2021.

This milestone marks Heritage’s second U.S. state where it is operating, and with six additional states on the horizon, our U.S. strategy is gaining traction and taking shape as the U.S. moves closer to decriminalizing cannabis. Heritage has established brands and formulations that people want and using our IP and asset light strategy we can deliver our products in a rapid, cost effective manner and take part in the upswing of the burgeoning legalized U.S. market.

“With our growing footprint in the United States, Heritage is uniquely positioned to develop our presence with our brands that are already highly sought after in legalized medical cannabis markets. Our strategy takes advantage of early entry in markets that have near-term potential for recreational legalization, and with the recent comments from President Biden on a federal review of marijuana classification, we couldn’t be in a better position and are very excited for Heritage’s future,” said David Schwede, CEO of Heritage. “Our asset-light, capital efficient approach to our U.S. expansion adds another revenue stream to our consistent quarter-over-quarter growth we have seen since early 2021 and we see sizeable upside potential for Heritage as we roll out more planned revenue streams in Canada and the U.S.”

Heritage has been working with Harvest Care, a leading grower, processor, and provider of top-quality medical cannabis products in the state of West Virginia, with ten dispensary licenses of which two are currently in operation. Harvest Care was granted one of ten cultivation licenses last year and will contribute that and the processing license to the relationship, allowing Heritage to produce branded products to be offered to medical cannabis consumers in West Virginia.

As part of the relationship with Harvest Care, Heritage has supplied production equipment as well as training and supervision of staff on the proprietary methods of extraction and manufacturing of Heritage developed and branded products. The relationship provides favourable shelf allocation for Heritage’s branded products in Harvest Care’s West Virginia dispensaries.

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”
David Schwede, CEO

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/20221011005581/en/

For more information:

Kelly Castledine

Tel: 647-660-2560

Source: Heritage Cannabis Holdings Corp.

FAQ

What recent expansion did Heritage Cannabis Holdings Corp. make?

Heritage Cannabis Holdings Corp. has expanded into West Virginia after Harvest Care Medical received a processing license.

How is Heritage Cannabis positioning itself in the U.S. market?

Heritage is establishing operations in multiple states and leveraging an asset-light strategy to capitalize on market opportunities.

What is the significance of federal cannabis classification changes for HERTF?

Changes in federal cannabis classification can enhance market opportunities for HERTF as more states legalize cannabis.

What are the growth plans for Heritage Cannabis in the U.S.?

Heritage plans to operate in six additional states as part of its U.S. expansion strategy.

What products is Heritage Cannabis producing in West Virginia?

Heritage is currently producing vape products and concentrates in West Virginia.