TORONTO--(BUSINESS WIRE)--Heritage Cannabis Holdings Corp. (CSE: CANN) (OTCQX: HERTF) (“Heritage” or the “Company”), is pleased to provide an update on its growth in distribution of recreational products across Canada.
Heritage has continued its strong execution in the third quarter. Our second quarter results were a strong validation of our strategy as we posted a 250% quarter-over-quarter increase in revenue compared to the first quarter of 2021. We have continued to execute on our strategy and as a result have seen strong growth in shelf space for Heritage brands combined with increased product distribution across Canada. This is a noteworthy accomplishment as many companies are seeing a contraction in shelf space across the country given the crowded landscape.
Recreational Sales: Retail
In Canada’s largest and most crowded market, Heritage continues to see growing interest in its premium and affordably priced products in the province of Ontario with 7 new SKUs added to the OCS in Q3. RAD Shatter products were the fastest growing products in the concentrates category and achieved #5 and #6 concentrate overall within one month of launching in the province. Additionally, in the oils category Heritage saw 40% growth in month-over-month sales, and vape sales grew 164% month-over-month.
In British Columbia, sales and recurring orders of products across all Heritage brands continue to accelerate, with a recent 119% quarter-over-quarter growth in vape sales. Currently RAD product is in 90% of the dispensaries in BC.
The RAD Sour Tangie High CBD and 1g Purefarma vapes recently launched in the province and are performing well to date. Heritage has shipped its first orders of RAD Reefer (flower) and RAD Doobie (pre-rolls) to the province and expects to introduce both products to additional provinces in Q4.
In Alberta, the province has listed 21 new Heritage SKUs, and RAD vapes have proven to be very popular as Heritage has seen consistent re-orders of RAD vapes from the province.
In Saskatchewan, Heritage added 35 new SKUs. The product launch was very successful with Saskatchewan re-ordering within weeks due to the positive sell through rate of Heritage brands. Both the Saskatchewan and Manitoba markets are a focus for Heritage, and we continue to see positive trends in re-order rates and market share wins.
Heritage recently signed a supply agreement with Quebec based Medicibis to supply their medical platform Mendocannabis.ca with 61 SKUs, which are expected to be a considerable part of the medical cannabis offerings on the platform. Additionally, Heritage recently participated in a product call with The Société québécoise du cannabis (“SQDC”) and expect to have an initial 2-3 SKUs in the province following the completion of the product call in Q4.
In New Brunswick, Heritage has become the largest provider of concentrate products, and the Company recently saw 175% growth in sales in the province over the month of June 2021. In Newfoundland Heritage secured shelf space and shipped 27 new SKUs to the province and had re-orders from retailers a week later due to strong sell through. This is an exceptional result given Newfoundland’s process is on an annual basis.
Popularity is growing in Nova Scotia. Heritage brands now have 17.8% of the market share in the concentrates category, and RAD alone grew from 7.5% to 11.7% market share in a three month time-frame over the quarter.
Heritage has a strong market share in eastern Canadian provinces and is actively working to expand its brand offerings in the region, as well as add products in PEI.
Recreational Sales: Medical Channels
Both provincial and on-line platform sales continue to grow across Canada and Heritage is supplying 39 and 46 new SKUs to on-line platforms Shelter Market and Cannmart respectively.
“The market penetration of Heritage brands and products is accelerating across Canada with the acceptance of new SKUs and multiple re-orders. While we anticipate sales exceeding our historic Q2 results we are also focused on ensuring we can build a platform that can drive continued growth for our shareholders,” stated David Schwede, President of Heritage’s recreational cannabis division. “Our core focus is to create high-quality, appropriately priced products that align with what cannabis consumers want. Our recent performance has reinforced that consumers agree as the strength of the rate of re-orders, and period-over-period growth in sales in the provinces has continued. Our model is set to expand in the U.S. and we expect to accelerate our state by state expansion by leveraging our partnership with Merida Capital Holdings to advance the Company’s U.S. product distribution strategy and have products on U.S. shelves by the end of the year.”
Medical Division: First Product Launches in Canada
The Medical Division is launching its first six Opitcann medical “CB4” line of branded products to be sold through medical channel partners and through Heritage Patient Care starting in August 2021. CB4 products are backed by scientific performance data and include CB4 Relief and CB4 Relief-T oral CBD Softgel capsules formulated with VESIsorb® technology, as well as topical CB4 Relief Deep Rub Gel formulated with enhanced skin permeation technology for maximum absorption through the skin.
The Opticann suite of branded products also includes CB4 Control sublingual (under the tongue) filmstrips containing both CBD and CBDA based on Versafilm® pharmaceutical technology and are proven to deliver rapid and better absorption of ingredients from the sublingual cavity in a convenient dosage form. Additionally, Heritage will be launching CB4 Derma and CB4 Clear topical skincare products uniquely backed by product specific clinical trial data.
“We are excited to introduce the revolutionary CB4 suite of medical products that have been in development for a number of years,” stated Umar Syed, President of Heritage’s medical division. “Opticann’s CB4 products are formulated using proven pharmaceutical technology and are uniquely backed by objective scientific data that speaks to their efficacy for both health care practitioners and patients, addressing large unmet needs in the Canadian medical market. These products are well suited for mass medical adoption given their convenient dosing forms (gelcaps, filmstrips, and topical products) with which the medical and pharmacy communities are both familiar and comfortable prescribing and recommending as medical treatments.”
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.
The Canadian Securities Exchange does not accept responsibility for the adequacy or accuracy of this release.