On April 1, 2019, Heritage Cannabis (CANN.C) announced that its subsidiary CannaCure has received both its Standard Processing Licence and Medical Sales Licence from Health Canada.
With the award of these licences, CannaCure can now execute its downstream extraction, distillation and purification plans.
Three weeks ago, CannaCure’s 1st harvest successfully passed all tests including microbiology and pesticides and recorded an average THC content between 17-22%.
Heritage’s subsidiary PhyeinMed obtained its standard processing licence on March 1, 2019. The extracted cannabis will be formulated for use in medical sales, adding significant value compared to wholesale dried flower revenues.
CannaCure’s inaugural grow was cultivated in a limited and contained portion of the total production space to demonstrate successful indoor cultivation practices and create proficiencies for replication during expansion.
“The experience, care and passion of our cultivation team resulted in a successful first crop,” stated Clint Sharples, CEO of Heritage. “The optionality provided by our recently awarded processing licence at Falkland gives us the ability to maximize profits from all sources”.
Whatever Sharples and his team are doing – the market’s loving it.
On March 18, 2019 Horizons ETF announced a quarterly rebalance of the Horizons Marijuana Life Sciences Index ETF (HMMJ.TSX) adding 10 additional companies including Heritage Cannabis and (shameless plug), Westleaf (WL.V).
HMMJ is the world’s first ETF offering direct exposure to North American-listed securities that are involved with marijuana bio-engineering and production.
HMMJ is a passively managed ETF, which seeks to replicate the performance of the North American Marijuana Index.
“HMMJ is the best-performing equity ETF in Canada, with a year-to-date return of 58%,” stated Steve Hawkins, President and CEO of Horizons ETFs. “As the market-capitalization of cannabis stocks continues to grow, so too have the number of eligible issuers to be included in HMMJ. This is why the ETF has added 10 new names to its portfolio, bringing the total number of investee companies in HMMJ to 59.”
Horizons ETFs has more than $10 billion of assets under management.
CannaCure will soon begin its Phase 2 expansion of up to 30,000 sq ft for additional extraction.
This processing licence is a first step allowing CannaCure the ability to form partnerships for the anticipated new regulation surrounding derivative products. It is currently evaluating criteria for partnerships, specifically targeting companies that develop cannabis derivative products.
On March 7, 2019, Heritage’s subsidiary, Purefarma Solutions, added industrial-scale intake capacity to its hemp oil extraction operations.
“Federal and provincial governments in Canada continue to launch educational campaigns for farmers wishing to get in on hemp’s potential as a viable cash crop,” wrote Equity Guru’s Gaalen Engen, “If Purefarma is able to work in conjunction with its hemp farming collective in Saskatchewan, it will be a global hemp force to be reckoned with.”
“CannaCure is on the path of being one of the largest cannabis concentrate manufacturing facilities in Canada,” stated Sharples.
Full Disclosure: Heritage Cannabis is an Equity Guru marketing client and we own the stock.