Heritage and Zenabis Sign Binding Term Sheet for Mutual Supply Agreement
Vancouver, B.C. / TheNewswire / May 9, 2019 – HERITAGE CANNABIS HOLDINGS CORP. (CSE: CANN) (“Heritage” or “Company”) is pleased to announce that it has entered into a binding term sheet effective May 8th, 2019 (the “Term Sheet”) that will form the basis for a Mutual Supply Agreement and a Services Agreement (the “Agreements”) with Zenabis Global Inc. (“Zenabis”) which will see the two companies work collaboratively together for the shared benefit of both organizations.
The Term Sheet calls for Heritage, via its wholly owned subsidiary Purefarma Solutions Inc. (“Purefarma”) to provide both toll extraction services and various formulated extracted oil products to Zenabis. Additionally, the Term Sheet will have Zenabis supplying Heritage with dried flower and trim for extraction. This arrangement extends to both British Columbia and Ontario for extraction services, while Zenabis will supply the cannabis product from each of their facilities in New Brunswick, Nova Scotia and British Columbia.
Furthermore, this open-ended Term Sheet includes option for both Heritage and Zenabis to jointly pursue the co-development of formulated CBD distillate, CBD isolate, Liquid oil THC distillate and THC and CBD concentrates. Scientists from Zenabis will look to collaborate with Heritage’s medical sciences division to create a series of specialized products which would be marketed directly through various online portals with the intent for those products with regulatory approval being available to the public by summer 2019.
“This is a great opportunity to leverage the strengths of Zenabis and Heritage for the mutual benefit of both companies.” states Andrew Grieve, CEO of Zenabis “We look forward to creating something special to bring to the market.”
The initial Agreements will see Zenabis deliver a minimum of 500 kg of dried flower and trim to Heritage, and in return Heritage will supply Zenabis with a minimum of 150 kg of CBD or THC extracted distillate, both to be delivered by the end of 2019.
“We are excited to be working with Zenabis in this unique approach. Both companies are projecting significant growth, and this agreement is designed to be scalable to address future needs.” says Clint Sharples, CEO of Heritage. “We are off to a strong start in 2019 and have been working diligently to ramp up our capacity to support industry growth.”
About Zenabis Global Ltd
Zenabis is a Canadian publicly listed licensed cultivator of medical and recreational cannabis. The company was formed in January, 2019, through the combination of Bevo Agro Inc., one of the largest propagation businesses in North America, and Sun Pharm Investments Ltd., a large privately held licensed cannabis producer with established medical and recreational cannabis brands and distribution. The company owns six state-of-the-art indoor and greenhouse facilities across Canada, four of which are intended for cannabis cultivation. If all four such facilities are fully built out and converted to cannabis production, they would have a design capacity to yield approximately 479,300 kilograms of dried cannabis annually.
About Heritage Cannabis Holdings Corp.
The Company is focused on becoming a vertically integrated cannabis provider that currently has two Health Canada approved licenced producers, through its subsidiaries Voyage Cannabis Corp. and CannaCure Corp. both regulated under the Cannabis Act Regulations. Working under these two licences, Heritage has two additional subsidiaries, Purefarma Solutions, which provides extraction services, and BriteLife Sciences which is focused on cannabis based medical solutions. Heritage as the parent company, is focused on providing the resources for its subsidiaries to advance their products or services to compete both domestically and internationally.
ON BEHALF OF THE BOARD OF DIRECTORS OF HERITAGE CANNABIS HOLDINGS CORP.
For more information contact:
The Canadian Stock Exchange does not accept responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking information, which involves known and unknown risks, uncertainties and other factors that may cause actual events to differ materially from current expectation. Important factors - including the availability of funds, the results of financing efforts, the results of exploration activities -- that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time on SEDAR (see www.sedar.com). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.