TORONTO–(BUSINESS WIRE)–Heritage Cannabis Holdings Corp. (CSE: CANN) (OTCQX: HERTF) (“Heritage” or the “Company”), today announced that the recent vote to legalize cannabis in the state of Missouri is expected to have positive impacts on its recently launched U.S. strategy to enter medical and recreational legalized states in the U.S. using an asset light approach in partnership with existing local license holders.
Heritage is poised to capture a substantial share of early shelf space and revenue in the newly legalized Missouri market and will be pursuing an aggressive campaign to engage with retailers and consumers. The company aims to quickly become a market leader and pacesetter of innovation in the State.
On Tuesday, voters in Missouri approved Amendment 3 which fully decriminalizes cannabis in the state and opens the market to include recreational sales, a move that is expected to significantly expand the market. This is in addition to the medical marijuana program that was approved in 2018. With legalization in force, MJBizDaily projects sales could reach up to US$550 million in Missouri in the first year of legalization and as much as US$900 million by year four. In comparison, the Canadian cannabis market size where Heritage currently operates is US$3.4 billion in 2022 according to MJBizDaily, making the Missouri market potential approximately 25% of the entire Canadian market.
“The timing of this couldn’t be more perfect with production up and running in Missouri and products ready to ship imminently. We are very pleased with this market development and Heritage is poised to capture market share with our established brands and formulations, adding a high gross margin revenue stream to the business,” said David Schwede, CEO of Heritage. “Missouri is expected to see strong growth as legalization takes shape and Heritage is well positioned to capture a piece of this burgeoning medical and recreational market. Our leadership team is focused heavily on the State and the opportunities that it presents the Company.”
In October, Heritage commenced operations in the state of Missouri through a relationship with Como Health LLC, doing business as 3Fifteen Primo Cannabis (“3Fifteen”). 3Fifteen, a rapidly growing cannabis company with five dispensaries in operation, received an Approval to Operate from the Missouri Section for Medical Marijuana Regulation, and production on vape products and concentrates commenced in the State shortly after, with product expected to ship in the coming weeks.
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, Thrifty, Premium 5, 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.
The Canadian Securities Exchange does not accept responsibility for the adequacy or accuracy of this release.
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, 2021, and dated May 10, 2022. 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.