On October 13, 2020 Heritage Cannabis (CANN.C) announced that Health Canada has granted a cannabis oil sales licence to its subsidiary CannaCure – effective Oct. 9, 2020.
Heritage owns two licensed Canadian producers, Voyage Cannabis and CannaCure, both of which also have industrial hemp licences.
Working under these licences, Heritage has two additional subsidiaries, a medical services division (which is focused on cannabis-based medical solutions) and Purefarma Solutions (which provides extraction services).
CannaCure is based in Fort Erie, Ontario (pop. 31,000).
During the American Revolution Fort Erie was used as a supply depot for British troops.
The Americans attacked Fort Erie twice 1812 and 1813. The U.S. army briefly occupied it, then destroyed Fort Erie and returned to Buffalo.
Twenty-five years later, Fort Erie became a major terminus for American slaves using the Underground Railroad to flee the U.S.
CannaCure’s 122,000 square foot is designed to process, manufacture and distribute cannabis products. CannaCure is entering various partnerships to prepare for the expected growth in the Company’s extraction business and to meet the demands of the consumables market when approved by Health Canada.
CannaCure already has a license to grow cannabis, pursuant to the Access to Cannabis for Medical Purposes Regulations (ACMPR).
CannaCure’s 122,000 sq. ft building highlights:
- Modified 24,000 sq. ft. grow-op for phase 1 of its cultivation license
- Research space
- Development area
- Shipping and receiving infrastructure
- Explosion proof rooms for future extract requirements
CannaCure is developing potential strategic partners to create a path to profitability and growth
CannaCure’s goal is “to transform the global marijuana landscape through innovative growth strategies and strategic partnerships with manufacturers of cannabis products.”
Community relations at Fort Erie appear to be good.
“It’s been more than a year since legalization, and the cannabis industry has only brought positive things here,” stated Ward 1 Coun. George McDermott in a Jan, 2020 Niagara This Week article, “who noted two local cannabis operations, CannaCure and Stevens Greens, are growing the town’s employment options and putting people to work.”
Some Fort Erie residents feared that proximity to a cannabis facility would devalue their homes, but local real estate data suggest the opposite.
“Everyone says it’s going to devalue their home, but I’ve never seen any evidence to back those claims up,” stated McDermott. “I won’t support any kind of control bylaw that seeks to undermine the growth of the cannabis industry in Fort Erie.”
This sales licence announced on October 13, 2020 will allow CannaCure to begin selling cannabis products, including oil derivatives, directly to the provincial cannabis boards.
Heritage’s existing Voyage Cannabis products:
- Pura Vida CBD 4:1 honey oil
- indica vape cartridges
- sativa vape cartridges
- hybrid honey oil vape cartridges
- Purefarma Moon
- Sun and Earth vape cartridges.
- Tinctures include Pura Vida ‘Daybreak’ and ‘Nightfall’ full-spectrum THC tinctures and the popular Purefarma Hemplixer full-spectrum CBD tinctures in two concentrations, HLX15 and HLX30.
The cannabis oil sales licence puts Heritage in a good position to improve on its robust financials.
CANN Q3, 2020 Financial Highlights:
- Gross revenue of $2.4-million in Q3 2020 compared with nil in the three-month period ended July 31, 2019.
- After adjusting for excise taxes, CANN reported net revenue of $2.3-million
- Gross margin percentage loss on sales net of excise taxes of 42%. The COVID-19 outbreak had a negative impact on the company’s revenue, maintaining efficient production and operating metrics.
- Net loss of $15,000 or zero cents per common share
- As at the end of Q3 2020, the company had cash and cash equivalents of $10.2-million
Select CANN Q3 2020 Growth, Operational, and Corporate Highlights:
- On May 26, 2020, Heritage announced the intent to launch its own series of formulated extraction products under the brand name Purefarma
- The Purefarma brand will be sold through recreational channels, including cannabidiol (CBD) focused products such as elixirs and vape pens.
- On June 4, 2020, the company signed an agreement to purchase the Pura Vida brand and trademark for $75,000,
- On June 16, 2020, and June 18, 2020, the company announced the initial Pura Vida products
- On June 30, 2020, Heritage signed a term sheet with True North Agri Inc. for contract manufacturing services including biomass sourcing and the production of full spectrum cannabis oil and vape cartridge products.
- On July 8, 2020, Heritage announced the intended launch of Purefarma Hemplixers and a Pura Vida CBD tincture and four-to-one full spectrum CBD dominant vape product.
- On July 13, 2020, Heritage signed a term sheet with Weed Me Inc. for contract manufacturing services to produce high-quality cannabis vape cartridge products.
The CannaCure sales licence granted by Health Canada follows “the acquisition of Opticann, and the availability of our products through the medical site Patient Choice,” stated Clint Sharples, CEO of Heritage. “We are on a strong trajectory in the Canadian and U.S. cannabis markets and having our sales licence at CannaCure provides optionality and flexibility for the business.”
– Lukas Kane
Full Disclosure: Heritage Cannabis is an Equity Guru marketing client.
Leave a Reply