Heritage Cannabis Holdings Corp said it has executed a term sheet with Merida Capital Partners IV LP and its affiliates to fund the Company’s entry into the state of Missouri.
Missouri’s first legal medical sale took place in October 2020, and according to the Missouri Department of Health and Senior Services, 140 approved dispensaries generated over US$65 million in retail sales in the first half of 2021, and US$21 million of sales in the month of July.
Total retail sales in Missouri are estimated to rocket to US$650 million by 2025, according to New Frontier Data. Missouri surpassed 100,000 patients in May 2021, seven months after the first sale, and robust patient adoption trends prevail, noted the company.
Previously, Heritage announced a five-year relationship with Como Health LLC, doing business as 3Fifteen Primo Cannabis, to enter the US market in Missouri. 3Fifteen has five dispensary licenses of which three are operational and two are in construction phase. 3Fifteen holds one manufacturing license, allowing Heritage branded products to be produced and offered to medical cannabis patients in Missouri.
The relationship will grant shelf minimums for Heritage’s branded products in 3Fifteen’s Missouri dispensaries.
“We are focused on building out our brand offerings in new high-growth markets, and with strong market growth projected in Missouri and the support of Merida, we are confident that we can leverage 3Fifteen’s market position to do so,” Heritage CEO David Schwede said in a statement. “We are seeing strong demand for our brands in Canada and with our extraction expertise and inspired branding capabilities, we expect to see a similar response in Missouri and additional states as we continue our U.S. expansion.”
Max Gerard, partner at Merida Capital, said the firm is happy to support Heritage’s US expansion.
“Missouri represents an attractive medical market with further regulatory upside in the coming years. Merida believes that concentrates and other derivative products will perform well in the regional markets where 3Fifteen operates – St. Louis, Columbia, and Branson West,” added Gerard. “In addition, we continue to value the extraction expertise that Heritage brings to the rest of our portfolio of over 60 companies.”
High Tide private label agreement
In a separate development, Heritage announced that it has launched its private label program (PLP) that pairs leading brands with Heritage’s innovative extraction expertise.
Heritage’s first agreement is with High Tide Inc to make High Tide’s Cabana Cannabis Company branded shatter for distribution in Ontario, Manitoba, Saskatchewan, and Alberta. “This agreement is dependent on listing approval and could expand into additional jurisdictions,” said the company
“We are excited to launch our private label program initiative with High Tide as they are one of the top retail platforms in the country with 93 physical locations and a robust online presence,” said Schwede. “Our PLP program is a natural extension of working with other leading companies to differentiate product offerings for the consumer. We are excited to see the successful launch of the PLP program and are enthusiastic to work with additional parties that have expressed interest in leveraging the success of the Heritage platform.”
Heritage is a top three concentrates producer in Canada and has launched products across the country. Heritage has quickly developed a reputation for its quality and innovative product approach and has become a leader in the concentrates market.
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