Heritage Cannabis shares climb after CannaCure unit nabs processing and medical sales licence

Shares of Heritage Cannabis Holdings Corp (CSE:CANN) (OTCMKTS:HERTF) jumped Monday after it released news that its subsidiary, CannaCure, had received its processing and medical sales licence from Health Canada.

Shares were recently up 3% at C$0.68 in Toronto, and up 4.7% at US$0.52 in New York.

CannaCure is a Fort Erie, Ontario-based medical cannabis producer, which will shortly begin its Phase 2 expansion of up to 30,000 sq/ft, to bolster its extraction processing capacity. 

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“This licence is a large milestone for CannaCure and one that we are thrilled to have reached in such a short period of time.” says Clint Sharples, CEO of Heritage. “CannaCure is on the path of being one of the largest cannabis concentrate manufacturing facilities in Canada. This is key to us as a company to solidify future revenue streams, especially in light of recent regulatory developments allowing edibles, topicals and infusions, which we feel are likely to have a significant impact on the cannabis industry.”

Purefarma connection

CannaCure works closely with Purefarma Solutions, another Heritage Cannabis subsidiary, which provides extraction services.

CannaCure has a 122,000 sq/ft facility in Niagara, which hosts cultivation space, individual research and development areas, shipping and receiving infrastructure.

The company said the processing licence is the first step towards CannaCure forming more partnerships in the cannabis derivative space, such as oils, and its Phase 3 expansion, which will allow it to manufacture these products.

According to the company, CannaCure will start to receive a portion of Purefarma’s hemp feedstock, which is stockpiled in Saskatchewan, and start extracting shortly. 

Once the oil is produced, it will be sent to independent labs for testing, and the company will need to receive a final inspection from Health Canada before it can be sold.

Contact Katie Lewis at [email protected]

Story by ProactiveInvestors