“Obtaining the distribution rights for select VESIsorb™ products in Canada adds to our fast-growing suite of retail and medical product offerings across the country…With this agreement, we will leverage the significant scientific research, customer targeting, market planning and branding activity underway for large U.S. retailers to market these medical CBD products in Canada. These are highly differentiated products with published data to support their utility for medical applications. Our portfolio of VESIsorb™ formulated products is designed to fulfill the unmet needs of sophisticated consumers and healthcare professionals who are demanding science-backed and clinically proven cannabinoid product offerings,” commented Umar Syed, President of Heritage’s Medical and International business.
The distribution agreement will include a select portfolio of oral and topical cannabinoid products utilizing the patented VESIsorb™ delivery system. In 2020, through its U.S. subsidiary Opticann, Heritage signed a supply and distribution agreement to exclusively brand and market a select portfolio in major U.S. retailers including CVS, Walgreens, and Walmart to name a few. With this in mind, the Company’s latest distribution deal has created strategic channels in the Canadian marketplace marking a huge milestone for Heritage.
Lets talk about VESIsorb™. VESIsorb™ is a leading delivery system technology focused on dramatically improving the stability, absorption, and bioavailability of natural ingredients like cannabinoids. No, its not the type of delivery system that will bring you a pizza when you’re stoned, however, it will help you feel high faster and for longer. Not convinced? VESIsorb™ was recently studied in Molecules, a peer reviewed journal, which published the results of a double-blind, cross-over study. The study compared the performance of a CBD extract formulated with VESIsorb™ to that of the same CBD extract formulated with industry standard oil (MCT). Overall, the extract formulated with VESIsorb™ showed significant improvements across the board including greater concentration and exposure time as well as reduced time to reach peak concentration.
“Geocann is pleased to expand our agreement with Heritage as their leadership team has a proven track record of pioneering innovative cannabis products with strong brands and a strategic distribution infrastructure…We look forward to supporting their efforts in the U.S. and Canada by building on the supporting scientific evidence of the superiority of VESIsorb™ formulated cannabis products with new PK studies for cannabinoids and terpenes, topical penetration and permeation studies, and clinical end-points studies, all of which are currently underway,” said Jesse Lopez, CEO and founder of Geocann.
Ultimately, Heritage’s agreement with Geocann is a significant accomplishment for the Company. It has created a means for Heritage to penetrate the Canadian cannabis market with its VESIsorb™ products. Moreover, Heritage now has access to a rapidly evolving platform that will continue to grow as regulatory conditions develop. With this agreement, we could potentially see Heritage’s VESIsorb™ products placed in major Canadian retailers such as Shoppers Drug Mart. The Company has performed consistently well in the past year despite being significantly smaller compared to competitors like Supreme Cannabis. Furthermore, the Company’s market cap of $69.46 million is dwarfed by Supreme’s market cap of $198.37 million, indicating that Heritage has plenty of room to grow in the future.
Heritage’s stock price opened at $0.15 and currently sits at $0.145.
Disclaimer: Heritage Cannabis is a client of Equity Guru.