Heritage Cannabis Holdings Corp (CSE:CANN, OTCQX:HERTF) has highlighted its major achievements in 2021, including growing sales figures as it continues its expansion into the United States.
“We are continuing to see a strong positive response to our suite of products across the country, accompanied by growing sales figures – topping our prior quarter by approximately 30% in 1Q which is our second quarter delivering over 20% sequential growth,” said David Schwede, CEO of Heritage in a statement. “We previously signalled continued growth in sales and new product development, and we are delivering quarter after quarter as our platform outpaces other key market players.”
Along with new product launches and strong provincial re-orders, Heritage continues to see advancements in both market penetration and new listings across the provinces.
Recently, Heritage products became available for purchase on one of the largest online medical sales platforms in Canada - Canopy’s Spectrum Therapeutics, and received purchase orders to launch on another large online platform as early as March. These additions are setting the stage for further growth in 2022, the company said.
READ: Heritage Cannabis set to launch nine new products in Ontario cannabis market
With the financial backing of Merida Capital, Heritage said it has made significant progress on the licensed manufacturing facility build-out in support of the relationship with 3Fifteen Primo Cannabis in the state of Missouri. The Heritage team has progressed with equipment orders, and is establishing the biomass supply chain for the facility.
Production is expected to begin in the spring of 2022, with revenue from the sale of branded products to medical cannabis consumers in Missouri following shortly after.
Based on strategic imperatives and due diligence activities, Heritage said that its management has decided to no longer pursue the acquisition of Capna Intellectual, which does business as Bloom Brands. It will instead focus its efforts on current US activities that better align with short and long term goals.
In Ontario, Heritage gained new listings across multiple categories, giving it a total of 19 stock-keeping units (SKU) in Canada’s largest market, with nine additional SKUs coming to the Ontario Cannabis Stores (OCS) in the spring – a strong signal on the sell-through the province is seeing with Heritage brands.
Recent achievements include:
- For the 12 months beginning January 25, 2021, Heritage subsidiary Premium 5 produced $19.6 million in revenue and exceeded milestone expectations set at the time of the acquisition. This represents 113% growth from Heritage’s fiscal 2020 of $9.2 million in revenue
- Record sequential sales growth of approximately 30% over sales in the fourth quarter, based on shipped orders
- Became the only third party listed brands on Canopy Growth’s medical platform Spectrum Therapeutics, Canada’s second-largest medical platform
- Received purchase orders to be listed on another large medical platform with products expected to launch as early as March
- Number 2 in Canadian sales of concentrates (up from No. 4 in 4Q) and No. 5 in Canadian Sales of Oils (up from No.6 in 4Q)
- Number 2 vape brand in British Columbia
- In Ontario, 19 stock keeping units were available in 1Q through the OCS and an additional nine will be added this spring for a total of 28 available products
- As of November 2021 in Ontario, in the concentrates excluding hash category Heritage has 17% market share and is the No. 1 selling concentrate company in the category
- Added 45 net new SKU listings across the country accelerating sales growth in all key product categories
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