Heritage Cannabis generates FY2020 revenue of $9.3M on third-party contract sales

Heritage Cannabis Holdings Corp (CSE:CANN) (OTCQX:HERTF) (FRA:2UE) reported fiscal 2020 gross revenue of $9.3 million, even as COVID-19 weighed on the company’s first full year of sales. 

Heritage Cannabis noted that its revenue in FY2020 was composed primarily of proceeds from third-party contracts, as branded provincial sales didn’t start until late 2020. 

“During the past year, we continued to build the foundation of our company by moving the focus toward introducing our own brands and capacity expansion, and making acquisitions to support our long-term vision of delivering sustainable value to shareholders,” Heritage Cannabis Holdings CEO Clint Sharples said in a statement.

READ: Heritage Cannabis is pioneering the seed-to-sale cannabis model

He added: “The business definitely accelerated in 2020 despite the challenges brought on by the pandemic, and we expect to be well on our way to profitability this year with the integration of the recent acquisitions of Premium 5 and Opticann.”

“The combined group under the Heritage banner is focused on the success of our existing products, expanding SKUs across Canada, as well as near-term medical product launches.”

Heritage Cannabis also recorded a net loss for the year that narrowed to $0.02 per share, from $0.03 in 2019, as the company continued to use its cash resources to scale the business during the year. It is in the process of completing a financing subsequent to the year-end.  

Among the company’s notable accomplishments for 2020 was its acquisition of Opticann Inc, a Colorado-based oral and topical cannabinoid company, for an initial consideration of up to $3.7 million in stock. Opticann has the rights to exclusively sell CBD and CBG products made with the patented VESIsorb drug delivery system for optimized absorption and stability through a supply and distribution agreement with Geocann LLC. 

Heritage Cannabis is a vertically-integrated cannabis provider that currently has two Health Canada-approved licensed producers, through its subsidiaries Voyage Cannabis Corp and CannaCure Corp, both of which are regulated under the Cannabis Act Regulations. 

The company recently acquired Canadian recreational and medical cannabis company Premium 5 Ltd, which Heritage Cannabis expects will make it a leader in the extract and extract derivatives market, as Premium 5 is a premium provider of Cannabis 2.0 hydrocarbon and solventless concentrates in Canada. 

Contact Sean at [email protected]

Story by ProactiveInvestors