Heritage Cannabis’ (CANN.C) is emerging as a vertically-integrated cannabis company with quality growing and extraction operations through carefully selected acquisitions, thereby allowing access to every sector within the cannabis industry.
Formerly Umbral Energy, Heritage Cannabis has rebranded and redirected itself towards a burgeoning international cannabis market which is expected to to be valued at $32 billion by 2022.
With a focus on “leveraging its expertise and contacts to forward projects deemed prospective,” Heritage Cannabis has three subsidiaries to its credit. Each targets different sectors of the industry: cannabis production, CBD-oil manufacturing and potentially even the edibles market.
As evidence of its ability to network within the industry, one of Heritage Cannabis’ subsidiaries, PhyeinMed, announced that it had signed a distribution deal with cannabis giant Canopy Growth (WEED.T) in March.
Jagdip Bal, Heritage Cannabis’ then CEO, made a statement in February 2018 that the company was anticipating the receipt of their production licence in the “very near future.” Heritage Cannabis has also submitted three applications for dispensary licences in Alberta.
“I am excited to see the expansion of my personal Private Stash brand to Canada. I look forward to working with the quality team that Heritage has assembled, in order to help ensure the brand integrity I have worked to create”. ‘It Will Always Be Good’ – is my personal commitment to all our customers.”
Heritage Cannabis’ subsidiary, PhyeinMed, will supply recreational and medicinal cannabis products to Canopy Growth, both for sale in its brick-and-mortar locations and through its online store, TweedMainStreet.com.
Located in the B.C.’s Okanagan Valley, PhyeinMed is a licensed producer (LP) under the Access to Cannabis for Medical Purposes Regulations (ACMPR). The company is 75 percent owned by Heritage Cannabis.
PhyeinMed is currently engaged in the construction of cannabis cultivation and production facilities in Falkland, B.C. In March, the company announced it had completed phase one of build-outs on the property.
As previously announced, Phase one consists of 15,500 sq ft of production space. The company was awarded a production licence under ACMPR guidelines in July 2018.
Phase two is currently underway and involves the construction of ten greenhouses, with four slated for completion this fall and the remaining six by spring 2019. The initial four will cost $350,000 according to Heritage Cannabis.
Total grow canopy from the second phase of construction will deliver 41,580 square feet of grow space. The company aims to produce its first harvest in Q1 2019.
In September, Heritage Cannabis signed an LOI to wholly-acquire Purefarma Solutions, a CBD-oil manufacturer based in Kelowna, B.C.
Heritage Cannabis said the deal provides it and PheinMed with an “established pathway into the Canadian retail and wholesale, as well as overseas markets.”
Besides market access, the acquisition of Purefarma Solutions also gives Heritage Cannabis access to its subsidiary’s experienced oil extraction team.
Purefarma’s revenues for 2017 were approximately $2 million, while its EBITDA was $500,000. The company also has an existing supply agreement for 1,600 acres of hemp through its farmer partners. Heritage Cannabis expects this harvest to be brought to market in 2019.
“As many in this industry have realized, the extraction business is exciting yet difficult to execute.By adding the experts from Purefarma, a team of recognized industry leaders in the extraction business, we have provided Heritage and its subsidiaries a platform to position itself on the global stage.”
-Clint Sharples, chairman and interim CEO of Heritage Cannabis
Heritage Cannabis announced its acquisition of CannaCure in July, though the deal remains incomplete. Both companies have agreed to extend the deadline of the acquisition to November 2, 2018 so as to meet agreed upon conditions.
Located in Niagara Region, Ontario, CannaCure is in possession of a state-of-the-art pharmaceutical facility which was good manufacturing processes (GMP) certified under previous ownership.
The fully-constructed building has 122,000 square feet of space in total, with 24,260 square feet currently built-out and ready for production.
Build-outs to the facility will include the addition of extraction equipment, expanded grow rooms and, potentially, capabilities for producing edibles.
CannaCure retains a purchase option for a 3.4 million square feet operating greenhouse in Leamington, Ontario.
“We are working closely with the team at CannaCure to close this transaction, and it remains an important part of our expansion plans. We are targeting closing this and the Purefarma transaction at the same time, and executing our business growth as one entity in the near future.”-Sharples
Heritage Cannabis is managed by a board of directors with a wealth of experience in technical project development, product distribution and public company management.
The company is also expanding its management team, seeking to bolster its board of directors with with experienced individuals who can assist in establishing Heritage Cannabis in an ultra-competitive market.
Clint Sharples is the president, chairman and a director at Heritage Cannabis. Sharples is a partner in a small private equity management company formed in 2005. His primary roles are CEO of Modu-Loc Fence Rentals, a Canada’s Best Managed Company, and chairman of Strategic Aviation and Sky Café.
Michael Tkautz is the VP of business development for Heritage Cannabis and a director & co-founder of CeraPaint, and insulation paint technology company.
A seasoned entrepreneur, Tkautz has worked with several start-ups across Canada and Australia and co-founded two companies; Heart In Diamond, which specialized in manufacturing custom lab-grown diamonds; and GreenCity Initiatives, a company converting unused waste back into valuable resources.
Tkautz attended Sheridan College to complete his degree in Advertising to bolster his skills and abilities in sales and marketing, cultivating his proficiency in entrepreneurship.
Sharples is responsible for over 1,200 employees and $80 million in annual revenues. His prime role with Heritage Cannabis is to lead the overall corporate development and implementation of the strategic direction.
Heritage Cannabis’ CFO and corporate secretary, Kristina Khersonski, is an accountant with 15 years experience providing consulting and financial services to public companies in various industries.
Debra Senger is a Heritage Cannabis director and the founder and CEO of PhyeinMed Inc., a licensed producer and subsidiary of Heritage Cannabis. Debra has over 20 years experience with management of public companies.
Brad Culver, director, is a senior exploration geophysicist with Birchcliff Energy, a successful public oil and gas company based in Alberta. Previously, Culver worked with Encana for 10 years. He obtained his degree in geological sciences from Queens University in 1988.
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