Finance

Heritage Hashish Reviews Second Quarter 2021 Monetary Outcomes

TORONTO, June 28, 2021–(BUSINESS WIRE)–Heritage Hashish Holdings Corp. (CSE:CANN) (OTCQX:HERTF) (“Heritage” or the “Firm“), immediately introduced its monetary outcomes as at and for the three- and six-month intervals ended April 30, 2021 (“Q2 2021“). All figures are in Canadian {dollars} until in any other case famous.

Key Monetary Highlights of Fiscal Q2

  • Income climbed to a file $4.6M within the second quarter of 2021, up 251% from the $1.8M reported within the earlier quarter and 338% from the identical interval the prior yr.

  • Gross revenue elevated to a file $1.5M, with gross margins enhancing to 32% from 28% in Q1 2021.

  • SG&A prices as a share of income dropped to 66% within the second quarter of 2021, in comparison with 142% within the first quarter of 2021.

  • Sturdy Steadiness sheet with web working capital of $25.3M, and money rising to $11.0M as of April 30, 2021, bolstered by a profitable fairness providing which closed in the course of the quarter.

“We’re excited concerning the outcomes generated this quarter and the prospects for the Firm transferring ahead,” acknowledged Clint Sharples, Chief Government Officer of Heritage. “As we’ve got been discussing the final couple of quarters, we’ve got transitioned away from strictly offering contract manufacturing providers to an organization with a portfolio of six inside manufacturers in Canada and an e-commerce medical web site within the U.S. The leads to the present quarter are displaying the development of this shift which started lower than one yr in the past, and we proceed to construct by way of the third quarter of this fiscal yr. Whereas we expertise accelerated product distribution throughout the nation, we nonetheless have underserved markets to broaden and have but to launch into the multi-billion greenback U.S. leisure market in a significant method. From a monetary perspective, we prolonged our debt compensation window to late 2022, improved our working capital place and with continued robust gross sales progress together with managing prices, will guarantee we stay in a strong monetary place to fund progress and improve shareholder worth.”

“Though that is the primary quarter that Premium 5 has been below the Heritage banner, we’re extraordinarily proud of the efficiency of the group,” stated David Schwede, President of the Leisure division. “Now we have excessive expectations for ourselves and are working onerous to change into a acknowledged chief within the hashish sector and additional rising Heritage’s place on the Hashish map. I’m very assured, that we’re positioning Heritage for steady progress each in Canada and the U.S.”

Operational Highlights

  • Heritage has considerably expanded its product portfolio to now embody concentrates, vapes, topicals, edibles and dried flower. Provincial re-order charges and market penetration proceed to see optimistic tendencies.

  • Profitable launch of RAD, a price targeted model with choices within the focus, flower, distillate vape, dwell resin vape, and edible classes. RAD has change into a prime model in Canada for concentrates and accomplished first shipments to Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, NWT, Cannmart, Affected person Alternative, and will likely be transport quickly to PEI, Quebec, and Shelter Market within the very close to future.

  • Heritage continued to develop its distribution capabilities, including agreements with New Brunswick, the Northwest Territories, and Medical Hashish by Buyers Drug Mart within the second quarter. Subsequent to the top of the quarter, Heritage added Newfoundland, Nova Scotia, Cannmart, and introduced an association to enter Quebec by way of a distribution settlement with Nice White North Growers.

  • Secured flower gross sales below the RAD model launching Heritage into the Dried Hashish class. That is the biggest class in Canadian authorized gross sales, representing 64% of complete gross sales within the newest knowledge from Well being Canada.

Company Replace and U.S. Development Initiatives

  • The Firm entered right into a non-revolving mortgage settlement for $7M with rate of interest of prime +1.25% and due September 2022. A portion of the proceeds had been used to repay the entire excellent $4.7M due below a earlier credit score facility, which was due January 2022.

  • On April 7, 2021, Heritage introduced plans to enter the U.S. hashish market by way of an expanded relationship with Merida Capital Holdings. Subsequent to that announcement, in Could 2020, a five-year settlement with Como Well being LLC, a license holder for the manufacturing of hashish and operator of dispensaries in Missouri was signed.

  • Heritage introduced a non-binding letter of intent to accumulate California based mostly Bloom Manufacturers in an all-stock transaction. Bloom Manufacturers has gross sales in six states together with; California, Arizona, New Mexico, Washington, Oklahoma and Nevada.

  • Heritage not too long ago succeeded with the eCommerce launch within the U.S. of ArthroCBD, the 25 mg CBD softgel capsule model formulated utilizing VESIsorb®. The ArthroCBD launch marks the primary of a pipeline of over 7 new medicinal hemp based mostly CBD product choices deliberate.

Chosen monetary highlights for the three- and six-month intervals ended April 30, 2021 embody the next:

Three-month intervals ended

Six-month intervals ended

(in $CDN)

April 30, 2021
$

April 30, 2020
$

April 30, 2021
$

April 30, 2020
$

Gross Income

4,604,798

1,358,149

6,432,071

5,366,544

Internet Income

3,575,175

884,830

5,095,791

4,516,412

Price of Gross sales1

2,083,913

1,009,513

3,094,274

3,258,319

Gross Margin

1,491,262

25,302

2,001,517

1,408,078

Basic and Administrative Bills2

3,043,816

1,922,551

6,190,040

4,167,493

Different Revenue (Bills) 1

(641,651)

336,875

(602,901)

(88,108)

Complete Revenue (Loss)

(5,151,011)

(1,681,936)

(8,362,093)

(3,700,202)

1 Restated to agree with present interval presentation.

2 Excludes amortization and depreciation.

Monetary Statements

The consolidated monetary statements of the Firm as at and for the three- and six-month intervals ended April 30, 2021 and accompanying administration’s dialogue and evaluation have been filed with the securities regulators and can be found on SEDAR at www.sedar.com below the Firm’s issuer profile.

About Heritage Hashish Holdings Corp.

Heritage is a number one hashish merchandise firm working two licensed manufacturing services in Canada and providing modern merchandise to each the medical and leisure authorized hashish markets in Canada and U.S. The corporate has an in depth portfolio of top of the range hashish merchandise below the manufacturers Purefarma, Pura Vida, RAD, Premium 5, feelgood. and ArthroCBD.

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

“Clint Sharples”

Clint Sharples
CEO

The Canadian Securities Alternate doesn’t settle for duty for the adequacy or accuracy of this launch.

Ahead-Wanting Statements

This press launch comprises sure “forward-looking info” inside the that means of relevant Canadian securities laws and might also include statements which will represent “forward-looking statements” inside the that means of the secure harbor provisions of the U.S. Personal Securities Litigation Reform Act of 1995. Such forward-looking info and forward-looking statements should not consultant of historic information or info or present situation, however as an alternative characterize solely the Firm’s beliefs relating to future occasions, plans or aims, lots of which, by their nature, are inherently unsure and outdoors of the Firm’s management. Typically, such forward-looking info or forward-looking statements may be recognized by means of forward-looking terminology corresponding to “plans”, “expects” or “doesn’t anticipate”, “is predicted”, “price range”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “doesn’t anticipate”, or “believes”, or variations of such phrases and phrases or could include statements that sure actions, occasions or outcomes “could”, “might”, “would”, “may” or “will likely be taken”, “will proceed”, “will happen” or “will likely be achieved”. The forward-looking info contained herein could embody, however isn’t restricted to, assumptions associated to money movement and capital sources, and expectations associated to the provision and manufacturing agreements, the meant growth of the Firm, and partnerships and Joint Enterprise Partnerships.

By figuring out such info and statements on this method, the Firm is alerting the reader that such info and statements are topic to identified and unknown dangers, uncertainties and different elements which will trigger the precise outcomes, degree of exercise, efficiency or achievements of the Firm to be materially totally different from these expressed or implied by such info and statements.

An funding in securities of the Firm is speculative and topic to a number of dangers together with, with out limitation, the dangers mentioned below the heading “Dangers and Uncertainties” within the Firm’s annual administration dialogue and evaluation for the yr ended October 31, 2020 and dated February 26, 2021. Though the Firm has tried to determine vital elements that might trigger precise outcomes to vary materially from these contained within the forward-looking info and forward-looking statements, there could also be different elements that trigger outcomes to not be as anticipated, estimated or meant.

In reference to the forward-looking info and forward-looking statements contained on this press launch, the Firm has made sure assumptions. Though the Firm believes that the assumptions and elements utilized in getting ready, and the expectations contained in, the forward-looking info and statements are affordable, undue reliance shouldn’t be positioned on such info and statements, and no assurance or assure may be provided that such forward-looking info and statements will show to be correct, as precise outcomes and future occasions might differ materially from these anticipated in such info and statements. The forward-looking info and forward-looking statements contained on this press launch are made as of the date of this press launch, and the Firm doesn’t undertake to replace any forward-looking info and/or forward-looking statements which might be contained or referenced herein, besides in accordance with relevant securities legal guidelines. All subsequent written and oral forward-looking info and statements attributable to the Firm or individuals appearing on its behalf are expressly certified of their entirety by this discover.

View supply model on businesswire.com: https://www.businesswire.com/information/residence/20210628005829/en/

Contacts

Clint Sharples
416-705-8529
csharples@heritagecann.com
or
Kelly Castledine
647-660-2560
kcastledine@heritagecann.com

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