Earlier this year, we highlighted Heritage Cannabis Holdings Corp (CSE:CANN) (OTCQX: HERTF) as a North American cannabis company operating under the radar. When it comes to Heritage, we’re very excited about their influence in the United States (US) and want to provide more information on this aspect of the business.
Currently, Heritage benefits from Missouri and West Virginia in the US, and we prefer this part of the business. Although Missouri and West Virginia are not considered prominent markets in the US, we expect Heritage to use the markets as a launching pad for expansion into other states in the US.
A growth and execution story in the US
Last year, Missouri voted to legalize recreational cannabis and we expect the development to benefit businesses in the years to come. A few months ago, Heritage began selling cannabis in Missouri, and that comes after it formed a strategic relationship with Como Health (doing business as 3Fifteen Primo Cannabis).
We consider 3Fifteen a strategic legacy partner for many reasons. To date, Heritage has been working alongside 3Fifteen to supply production equipment and train employees in proprietary oil extraction and production methods. As part of the relationship, 3Fifteen is allowing Heritage to use its license to produce branded products for medical cannabis patients in Missouri. 3Fifteen has also awarded minimum shelves to Heritage’s branded products at Missouri dispensaries, and we support the relationship’s growth prospects.
According to Grandview Research, the medical cannabis market in Missouri was worth $290 million in 2021. In late 2020, the state began allowing the sale of medical cannabis products and we are supportive of how the market has evolved since then. Last month, Missouri voted to legalize recreational cannabis and we expect the development to be a growth catalyst for Heritage.
Shortly after Heritage formed a relationship with 3Fifteen, the North American cannabis company began operating in West Virginia and forged a strategic relationship with Harvest Care, a grower, processor, and provider of quality medical cannabis products. Through this relationship, Heritage can produce branded products to offer medical cannabis patients in West Virginia.
Last year, Harvest Care was awarded one of 10 farming licenses and will contribute to the farming and processing license in the relationship with Heritage. Of the ten dispensary licenses that have been granted, only two are currently in operation and we find this significant when we analyze the market opportunity for Heritage.
A misunderstood growth story
The unique characteristic with Heritage is associated with the amount of demand for intellectual property (IP) rights and proprietary cannabis brands. Heritage is well positioned to capitalize on the US by owning a portfolio of brands that are already highly sought after in the legal medical cannabis markets. Its strategy takes advantage of early entry into markets that have near-term potential for recreational legalization, and we’re bullish on that approach.
The company’s light approach to assets and capital efficiency in the US adds another important revenue stream to the business. Based on the operating model and the strength of the balance sheet, we believe the business has huge upside potential and we will watch how the business creates additional revenue streams to take advantage of the North American cannabis market.
Heritage is led by a management team that executes flawlessly on a multinational expansion strategy. We believe the business has significant potential catalysts for growth and we feel the market is excluding business-related growth prospects.
At current levels, we find the valuation compelling and the risk-reward profile adequate. If you are interested in learning more about Heritage Cannabis, please email support@technical420.com With the theme “The Legacy of Cannabis” to be added to our distribution list.
Disclosure of the company’s relationship
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This article contains forward-looking statements within the meaning of applicable securities laws. All statements that are not historical facts, including without limitation, statements regarding future estimates, plans, programs, projections, projections, goals, assumptions, expectations or beliefs regarding future performance are “forward-looking statements”. Forward-looking statements can be identified by the use of words such as “expects,” “does not expect,” “expects,” “believes,” “intends,” “anticipates,” “does not expect,” “believes” or variations of these words or expressions. or statements, that certain actions, events, or outcomes “may,” “could,” “may,” “might” or “will” happen or will happen. These forward-looking statements involve risks, uncertainties and other known and unknown factors that may cause actual results, events or developments to differ materially from expected results, events or developments expressed or implied in such forward-looking statements. These risks and uncertainties include, but are not limited to, reliance on obtaining and maintaining regulatory approvals, including obtaining and renewing federal, provincial, state, municipal, local, or other licenses, and any inability to obtain all government licenses and licenses. necessary permits to operate and expand company facilities; regulatory or policy changes such as changes in applicable laws and regulations, including federal, state, and provincial statutory, due to fluctuations in public opinion, industry perception of integrative mental health, including use of narcotic-assisted treatment, delays, inefficiencies, or any other reason; any other factor or development that is likely to impede the growth of the market; the company’s limited operating record and profitability; dependence on management the company’s need for additional financing and the effects of financial market conditions and other factors on the availability of capital; competition, including competition between more established and better funded competitors; the impact of the conflict between Russia and Ukraine on the global economy; the ongoing impact of the COVID-19 pandemic; and the need to build and maintain alliances and partnerships, including with R&D companies, customers and suppliers. These factors should be carefully considered, and readers are cautioned not to place undue reliance on forward-looking statements. Despite the Company’s efforts to identify key risk factors that could cause actual metrics, events or results to differ materially from those described in the forward-looking statements, other risk factors may cause actions, events or developments to differ materially from those anticipated, estimated or intended. . There can be no guarantee that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in the forward-looking statements.
