Heritage Cannabis shareholder Merida Capital will help introduce Heritage’s brands and products into select states, where medical and/or recreational cannabis is legal, or soon expected to be
Heritage Cannabis Holdings Corp (CSE:CANN) (OTCQX:HERTF) (FRA:2UE) said it has expanded its relationship with Merida Capital Holdings to rapidly advance Heritage’s US product distribution strategy.
Merida, a strategic shareholder in Heritage Cannabis, will help introduce Heritage’s brands and products into select states where medical and/or recreational cannabis is legal, or soon expected to be, starting with Michigan, Missouri, West Virginia, and California.
“Entering the US cannabis market with a clear path and strong partner is a pivotal and transformational moment for Heritage. The work done over the past three months with integrating Premium 5, increasing working capital and removing restrictive lending covenants has laid the foundation for today’s announcement,” Heritage Cannabis President David Schwede said in a statement.
READ: Heritage Cannabis is pioneering the seed-to-sale cannabis model
“We are excited to reveal more of our vision to create shareholder value through this accretive expansion. Further, our growing relationship with Merida underscores the strength of the business and will accelerate our state-by-state expansion and access to nine purposefully selected US markets, including the initial four we’re targeting immediately,” Schwede added.
“This is the start of a number of strategic pursuits planned to drive higher profitability and leverage our growing brand portfolio.”
Merida Capital was the largest non-insider investor in Premium 5 before Heritage Cannabis acquired the company in January.
Merida Capital Partner Max Gerard also commented, stating: “Merida is excited to strengthen our relationship with Heritage and introduce Heritage’s extraction expertise and Premium 5’s brand capabilities to our portfolio of 50+ companies.”
“We specifically believe this relationship will create incredible synergies for our limited license operators, which will immediately open shelf space to Premium 5’s products in large markets like Michigan and Missouri.”
Heritage Cannabis is a vertically integrated cannabis provider that currently has two Health Canada-approved licensed producers, through its subsidiaries Voyage Cannabis Corp and CannaCure Corp, both of which are regulated under the Cannabis Act Regulations.
The company recently acquired Canadian recreational and medical cannabis company Premium 5 Ltd, which Heritage Cannabis expects will make it a leader in the extract and extract derivatives market, as Premium 5 is a premium provider of Cannabis 2.0 hydrocarbon and solventless concentrates in Canada.
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