Heritage Cannabis (CANN.C) launches new consumer product as global cannabis stocks rally 61% in Q4, 2020

On January 11, 2021 Heritage Cannabis (CANN.C) announced that it has launched Premium 5 Ltd brand RAD, a specialty cannabis concentrate/extract that combines quality with affordability.

Heritage operates two Health Canada approved cannabis growers. Working under these two licenses through the Purefarma, Pura Vida and Premium 5 brands, CANN focuses on extraction and the creation of derivative products for recreational and medical consumers.

Premium 5 introduced one of the first hydrocarbon products in the Canadian recreational and medical markets, and it was the first to launch live resin vapes.

It currently offers two brands in eight provinces across Canada, as well as Shelter Market and Shoppers Drug Mart.

It is best known for its namesake brand Premium 5, which is first in the premium hydrocarbon and solventless concentrates category. The newly launched RAD value brand is a value hydrocarbon concentrate.

Currently, Premium 5 has entered eight of the 13 provincial and territorial recreational markets including the three largest — British Columbia, Alberta and Ontario.

In total, Premium 5 has 66 SKU offerings and a strong product development pipeline with a focus on innovation and quality.

High demand for Premium 5 products has resulted in provincial purchase orders nearing $10-million since launching sales in June, 2020, and growing each month to an annualized run-rate of approximately $20-million.

The launch has been met with strong consumer acceptance highlighted by sustained reorder rates across Canada, including over $2-million in the month of December.

Key strategic objectives:

Immediate coast to coast sales;
Strong margins with an emphasis to drive additional synergies;
Increased focus on execution and speed-to-market; and
Strong product development pipeline.

“There is a strong market for our product offerings through Premium 5, but we acknowledge the growing consumer demand for more affordable concentrate offerings,” stated David Schwede, CEO, Premium 5. “With RAD, we aim to leverage our strong reputation to delight our consumers with quality products at a value price point.”

In the video below, Heritage CEO Clint Sharples and Schwede, join Steve Darling from Proactive to discuss the merger.

In the U.S., Heritage operates under Opticann, a Colorado based oral and topical cannabinoid company with the rights to exclusively sell CBD and CBG products made with a patented drug delivery system for optimized absorption and stability.

After a 3-year post legalisation slump, global cannabis stocks advanced 62% in Q4, 2020 to end the year with a gain.

“After a sharp decline in September that left the index down 7% in Q3, the Global Cannabis Stock Index held on to massive gains in October and November, decreasing 0.8% to 44.39 in December,” reported New Cannabis Ventures.

“The index, which had 32 qualifying members during the month following the quarterly rebalancing at the end of September, declined 34.1% in 2019 to 42.20 and rallied for the first time in three years, increasing 5.2% in 2020 and 61.7% in Q4, 2020”.

Heritage also announced that it has terminated the term sheet with Cannahive announced August 18, 2020. Heritage and Cannahive were unable to settle the terms of the definitive joint venture agreement. Heritage is now pursuing various alternative options for edibles.

In the last 12 months CANN fell from .28 to .085 on Sept 18, 2020 – then rallied 70% to .14.

“High prices have been a regular consumer complaint after Canada legalized recreational cannabis in 2018,” stated CANN.

“Although the legal market has continued to grow, the legacy market still owns a significant percentage of cannabis sales in the country:.

“For consumers, there’s an uncertainty surrounding the ingredients and additives in products that are purchased from the legacy market that could potentially be harmful,” added CAN.

“RAD is committed to attracting consumers to the benefits of regulated and tested products through legacy-competitive pricing and in the interest of public health and safety”.

RAD is entering the Canadian cannabis market with 21 SKUs with plans to launch a number of new SKU’s in the coming months.

Products have now been ordered and shipped into Alberta and British Columbia and are soon expected to be going into the remaining provinces and territories.