Heritage Cannabis Holdings Corp. Reports Issuance of Shares

Rhea-AI Summary

Heritage Cannabis Holdings Corp. (CSE: CANN) (OTCQX: HERTF) has announced the issuance of 30,156,643 Common Shares to former shareholders of Premium 5 Ltd. as additional consideration for an acquisition completed on January 26, 2021. This payment addresses Premium 5's excess working capital and is subject to a statutory hold period and lock-up conditions. Additionally, the Company issued 170,000 Common Shares to Prairie Commercial Mortgage Corp. to partially satisfy fees for a brokerage agreement related to refinancing with BJK Holdings Ltd. The shares were issued at a deemed price of $0.1650 each.

Positive

• Successful issuance of 30,156,643 shares to Premium 5 shareholders enhances the acquisition value.
• Issuance of shares to Prairie Commercial Mortgage Corp. signifies ongoing financial maneuvers to support business operations.

Negative

• The issuance of a substantial number of shares may lead to potential dilution for existing shareholders.
• The hold period and lock-up conditions on newly issued shares could restrict liquidity.

Heritage Cannabis Holdings Corp. (CSE: CANN) (OTCQX: HERTF) (“Heritage” or the “Company”), announces that further to its press release dated January 26, 2021, the Company has issued common shares (“Common Shares”) in the capital of the Company to the former shareholders of Premium 5 Ltd. (“Premium 5”) as additional consideration in connection with the acquisition of all of the issued and outstanding securities of Premium 5 which was completed on January 26, 2021 (“Closing”).

As part of this acquisition, the Company agreed to pay additional consideration to compensate Premium 5 shareholders for Premium 5’s excess working capital on Closing, which is satisfied in the form of the issuance of 30,156,643 Common Shares in the Company (“Working Capital Common Share Payments”). The Working Capital Common Share Payments, are subject to a statutory four month and one day hold period from the date of issuance and are also subject to certain lock-up conditions.

The Company also issued 170,000 Common Shares in the capital of the Company to principals of Prairie Commercial Mortgage Corp. in partial satisfaction of fees for services pursuant to a brokerage agreement between the parties related to the previously disclosed strategic refinancing with BJK Holdings Ltd. The shares were issued at a deemed price of $0.1650 per Common Share and are subject to a statutory four month and one day hold period from the date of issuance.

About Heritage Cannabis Holdings Corp.

Heritage is a cannabinoid company focused on the production and sale of medical and recreational hemp-based and cannabis-based products and services. In Canada, Heritage operates through its subsidiaries Voyage Cannabis Corp. and CannaCure Corporation, both regulated under the Cannabis Act Regulations. Working under these subsidiaries and the Purefarma, Pura Vida, RAD, Premium 5, and feelgood. brands, Heritage focuses on extraction and the creation of derivative products for recreational consumers, as well as the formulation of cannabis-based medical solutions. In the U.S., Heritage operates under Opticann Inc., a Colorado-based oral and topical cannabinoid company with the rights to exclusively sell CBD and CBG products made with the patented VESIsorb® drug delivery system for optimized absorption and stability. As the parent company, Heritage is focused on providing the resources for its subsidiaries to advance their products or services to compete both domestically and internationally.

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

“Clint Sharples”

Clint Sharples
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/20210419005940/en/

FAQ

What recent share issuance did Heritage Cannabis Holdings Corp. announce?

Heritage announced the issuance of 30,156,643 Common Shares to former Premium 5 shareholders as part of an acquisition.

What is the significance of the share issuance related to Premium 5?

The share issuance compensates for Premium 5's excess working capital at the time of acquisition.

How many shares were issued to Prairie Commercial Mortgage Corp.?

Heritage issued 170,000 Common Shares to Prairie Commercial Mortgage Corp. for brokerage services.

What is the deemed price for the shares issued to Prairie Commercial Mortgage Corp.?

The shares were issued at a deemed price of $0.1650 per Common Share.

What are the hold conditions on the newly issued shares?

The newly issued shares are subject to a statutory four month and one day hold period.