TORONTO: Heritage Cannabis Holdings Corp. has signed a term sheet to enter into a two-year joint venture with Cannahive Inc., to produce cannabis infused edible products under Heritage’s brands to be sold to the provincial and territorial boards as well as licensed retailers in Canada.
Cannahive provides experienced manufacturing management services and will contribute a portfolio of intellectual property and processing patents for pharma-grade commercial manufacturing of edible cannabis products.
The Joint Venture will operate at CannaCure, Heritage’s existing Health Canada licensed facility in Fort Erie, Ontario (“CannaCure”), where CannaCure will provide the facilities, warehousing, quality assurance and other required services, and Cannahive will provide all production and packaging equipment as well as all ongoing equipment maintenance.
Proceeds from the joint venture will be equally shared between the parties after the payment of all direct costs incurred.
The Joint Venture will begin with utilizing Cannahive’s formulations for the production of gummies and chocolates, while CannaCure will provide the cannabis oil for all products.
“With our vape cartridge and tincture products hitting the shelves in BC, Alberta and Manitoba in the coming weeks, the Joint Venture with Cannahive is a low cost, low risk approach for Heritage to enter the next phase of our cannabis 2.0 strategy,” stated Clint Sharples, CEO of Heritage.
“We are excited to be launching our edibles product vertical with the backing of the Cannahive team who has the talent and experience to make this next phase of Heritage’s strategy successful.”
The Joint Venture is expected to be formed by the end of September 2020.
Heritage Cannabis Holdings Corp. is a vertically integrated cannabis company that owns two Health Canada approved licenced producers, Voyage Cannabis Corp. and CannaCure Corp., both of which also have industrial hemp licenses. Additionally, Voyage recently received its sales license from Health Canada, and the Company will be launching its own products in the BC, AB, and MB markets in summer 2020, with other provinces to follow.
Working under its licenses, Heritage has two additional subsidiaries, Purefarma Solutions, that provides extraction services, and a Medical Services Division which is focused on cannabis based medical solutions. Heritage as the parent company, provides the synergies and resources for its subsidiaries to advance their medical and adult use products and services both domestically and internationally.