Heritage Cannabis Announces Corporate Update and Highlights Significant Sales Growth, Growing Market Share and Distribution

TORONTO–(BUSINESS WIRE)–Heritage Cannabis Holdings Corp. (CSE: CANN) (OTCQX: HERTF) (“Heritage” or the “Company”) is pleased to provide an update on recent activities, including sales, market share, growing distribution and development of the society. expansion in the United States.

Year-end financial statements

Heritage’s financial results for the year ended October 31, 2021 will be released on the afternoon of Wednesday, May 11, 2022.

In 2021, Heritage and Premium 5 came together and formed a foundation upon which a strategically transformed business was built. The management team has spent the year positively changing the direction of the company, and change takes time. The results of some of the efforts made during the year are reflected in the 2021 results with a number of non-cash items responding to changes made during the year. These items were needed to set the stage for the new and improved heritage.

Over the next few weeks, Heritage will release financial results for the first quarter ended January 31, 2022 and then be back on schedule. The company is stronger than ever, as the sales and market performance details below show.

Recent sales activity and market performance1

Overall market share ranking and sales performance in British Columbia, Alberta, Saskatchewan and Ontario

  • Continued Sequential First Quarter Sales Growth with Fourth Consecutive Quarter Growth of Over 25%, Based on Orders Shipped

  • Heritage ranks 17th out of 267 Canadian cannabis companies for recreational revenue

  • Heritage’s top performing brand is RAD, which ranks 24th out of more than 500 brands across the country, with no significant presence in flowers and prerolls which hold the largest category share. This is a notable achievement as the RAD brand only came to market at the end of 2020

    • RAD has relaunched Radsicles for the summer season and is seeing significant retail distribution across the country.

    • RAD has grown to 1% of Canadian recreational market sales, and overall Heritage has 1.5% of the recreational market

Provincial market details

  • Heritage has a market share of 2.6%, 3.5% and 2.9% in Alberta, British Columbia and Saskatchewan respectively

  • Heritage has the #1 and #4 selling concentrate SKUs in Alberta

  • As of April 2022, in Ontario (Canada’s largest market), in the concentrates excluding hash category, Heritage holds the #1 and #2 selling concentrates

    • Heritage is approaching 1% market share with 24 Stock Keeping Units (“SKUs”) available in Q1 through the OCS and 17 more recently accepted for a total of 41 products available. This represents a 583% increase from the initial launch in Ontario in early 2021

  • In Manitoba, in the second quarter, Heritage recorded a 43% growth in sales compared to the first quarter

  • Added significant new net SKU listings in Newfoundland and Nova Scotia

  • Achieved 22 new SKU registrations in Prince Edward Island during the second quarter

National Product Rankings

  • Heritage is #1 in recreational concentrate sales in Canada (vs. #2 in Q1) with 15.2% market share

  • #10 in recreational vape sales with 2.7% of the market

  • #4 in the oils category with 7.5% market share

Medical

  • The additional medical sales come on top of the fact that Heritage has products listed on Canada’s two largest medical platforms

Industry growth rate

According to the latest helmet data, Heritage saw sales growth of 26% in the three months ending March 2022, helping Heritage lead sales growth among industry leaders.

March 22

CAGR

Market capitalization

M$ (May 6)

3 months follow-up

next growth rate

August 2021 to

March 2022

February 2021 to

March 2022

canopy growth

3,030

-20.6%

-3.8%

-3.4%

Tilray

3,108

-19.9%

-5.9%

-3.1%

Chronos Group

1,430

-12.2%

1.9%

5.1%

Sundial

1,408

2.2%

2.3%

4.7%

Aurora Cannabis

836

-32.3%

-9.4%

-7.8%

Organizational chart

559

-4.4%

3.8%

8.2%

Village farms

454

1.5%

-0.6%

4.4%

Valens

94

9.5%

4.4%

9.8%

HEXO

194

-14.6%

-3.1%

-1.6%

Medium

1,235

-10.1%

-1.1%

1.8%

Market

-4.5%

0.7%

2.8%

Heritage

40

26.1%

7.3%

13.1%

“Heritage continued to improve its product sales rankings in several categories provincially across the country. We are thrilled that our products continue to receive positive feedback and our mission to create SKUs forever translates into revenue growth,” commented David Schwede, CEO of Heritage. “We have proven that we can deliver products that are in demand across the country, but more importantly keep customers coming back for more. We thank all retailers and budtenders for helping us grow our brands and would also like to thank our medical platform partners for trusting us to supply their patients.

Sequential Growth in Provincial Sales Rankings

Province

Q2 2022

Q1 2022

alberta

#12

#22

British Columbia

#ten

#24

Ontario

#31

#34

Saskatchewan

#7

#12

Flower and pre-rolls

In 2021, Heritage launched prerolls and flower SKUs in several provinces with encouraging provincial orders. Already in a short time, Heritage ranks #25 in pre-rolls and #45 in bloom. Heritage continues to add new products including infused pre-rolls and blunts to the flower category, and with growing popularity it is expected to take a growing share of the larger product segment. cannabis products in the Canadian market.

US Expansion Update

Heritage has made significant progress in building a licensed manufacturing facility in support of the relationship with 3Fifteen Primo Cannabis in the State of Missouri. The Heritage team has made progress in establishing the biomass supply chain and is in the process of training facility staff. Production is expected to begin in the third quarter, with revenue from the sale of branded products to Missouri medical cannabis consumers following shortly thereafter.

About Heritage Cannabis Holdings Corp.

Heritage Cannabis is a leading cannabis company providing innovative products to the legal medical and recreational cannabis markets in Canada and the United States, operating out of 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., the CB4 line of medical products in Canada and ArthroCBD in the United States.

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

David Schwede

David Schwede

CEO

The Canadian Securities Exchange accepts no responsibility for the adequacy or accuracy of this release.

Forward-looking statements

This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities laws and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or of the current condition, but rather represent only the Company’s beliefs regarding future events, plans or objectives, many of which, by their nature , are inherently uncertain. and outside 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 “anticipates”, “expects” or “does not expect”, “is expected”, ” budget”, “expected”, “estimates”, “plans”, “intends”, “anticipates” or “does not anticipate” or “believes” or variations of these words and expressions or may contain statements that certain actions, events or results “may”, “could”, “could”, “could” or “will be taken”, “will continue”, “will take place” or “will be carried out”. Forward-looking information contained herein may include, but is not limited to, assumptions related to cash flow and capital resources, as well as expectations related to supply and manufacturing agreements, planned expansion of the Company, partnerships and joint venture partnerships.

By identifying such information and statements in this manner, the Company cautions the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results, level of activity, performance or achievements of the Company. 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 a number of risks, including, without limitation, the risks described under the heading “Risks and Uncertainties” in the annual management report of the Company for the financial year ended. on October 31, 2021 and dated October 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 expected, 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 assurances or warranties can be assured 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 contained or referred to 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.

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1 National helmet data

Sallie R. Loera