Heritage Cannabis

Vertically-Integrated and Scalable Cannabis Operations

This Heritage Cannabis profile is part of a paid investor education campaign.*


Heritage Cannabis Holdings Corp. (CSE:CANN;OTC:HERTF) is a vertically-integrated cannabis company in Canada. Heritage has two licensed producers in Canada: Voyage Cannabis and CannaCure. Heritage has also acquired Purefarma Solutions Inc., a private British Columbia company that specializes in processing CBD and THC oils, to produce high-quality oils and extracts.

Voyage Cannabis and CannaCure are expanding their operations to meet the demands of the legal Canadian and global cannabis markets. Through its two subsidiaries, Heritage has a combined coast-to-coast footprint of 153,000 square feet of cultivation space and has the potential to expand to 6.4 million square feet.

Voyage Cannabis has obtained its standard processing and medical sales licenses from Health Canada, and produces quality oils on a consistent basis by using the company’s Vitalis Q90 extraction systems. The medical sales license is expected to allow Voyage Cannabis to provide medical education services and sell directly to patients.

Purefarma has developed proprietary processes and intellectual property (IP) for its three key extraction methods. PureFarma’s award-winning product quality is attributed to their direct-to-vape oil methodology, where replacement of terpenes is not necessary. The proprietary technology provides the purest extraction using high pressure systems and no harmful chemicals. The company has contracted 1,600 acres of farmland in Saskatchewan to grow hemp and expects to scale up its operations to over 3,000 acres by 2021. Purefarma has also established relationships with 10 Canadian distribution partners via Heritage’s licensed producers. These partnerships are expected to provide Heritage the opportunity to establish an international presence.

Heritage has also acquired a 30 percent interest in Endocanna Health Inc., a California-based company that has developed a home-based saliva collection kit that identifies clinically relevant genetic variants related to each individual’s cannabinoid receptors and metabolism. Heritage launched the Endo·DNA Test Kit in Canada in December 2019 and can now provide a personalized Endo·Decoded report identifying how an individual’s specific genetic makeup interacts with cannabinoids and terpenes. This custom report will help customers select cannabis with the right cannabinoid profile and assist with choosing formulation, dosage, and best delivery method for their needs.

Heritage has a Contract Manufacturing Agreement (“CMA”) with Cronos Group Incfor the filling and packaging of vaporizer devices for the Canadian cannabis adult-use and medical market. Heritage will provide extract, fill and package vaporizer devices for the Spinach™ and PEACE NATURALS™ brands, utilizing multiple unique and proprietary formulations provided by Cronos Group. The CMA has a two-year term with an option to extend upon agreement by both parties, at an annual potential contract value of $35 million. Heritage is responsible for the costs of supply of cannabis biomass for the production which is estimated to be approximately $12 million, based upon the total contract value being achieved.

Heritage has an open-ended right-of-first-offer (ROFO) supply agreement with Weed Me, Inc. to secure future dried cannabis supply as each harvest is complete. The company received its first bulk order from Weed Me in August 2019, totaling more than 1,200 kg of cannabis biomass. This agreement is in line with Heritage’s strategy of procuring high quality biomass from industry leading suppliers to meet its scheduled contracted production volume.

Heritage has a strategic supply and contract manufacturing agreement with Sugarbud Craft Growers Corp. (TSXV:SUGR). Sugarbud is contracted to supply Heritage with a minimum of 100 kilograms of dried premium cannabis per month for an initial term of two years beginning May 1, 2020. In return, Heritage is expected to provide extraction, formulation and production services for the development of pre-filled vape cartridges, using proprietary formulations created by Sugarbud, subject to licensing and regulatory approvals. The agreement is in line with Heritage’s strategic goal to become Canada’s leader in supplying premium vape oil and vape products.

As part of its vertical integration model, Heritage has also secured the exclusive right to use Hollywood icon Cheech Marin’s cannabis brand, Cheech’s Private Stash, to sell products throughout Canada when Health Canada removes the restrictions on celebrity endorsements. It also allows the potential to distribute them globally. Heritage has applied for retail locations in Alberta and intends to apply in British Columbia and Ontario.

Heritage’s management team is bolstered by the experience and expertise of its Chief Science Officer Dr. Chris Spooner who brings over 20 years of experience owning and operating integrative care clinics and has sat on the advisory board for Atrium Innovations, a division of Nestlé Health Sciences.

Heritage Company Highlights

  • Vertically-integrated cannabis company with Canadian coast-to-coast cultivation footprint of 153,000 square feet.
  • Received a standard processing license through Voyage Cannabis subsidiary, which will enable the company to process hemp feed into oils and other extracts.
  • Received a medical sales license from Health Canada through its wholly-owned subsidiary, Voyage Cannabis, allowing the sale of medical cannabis directly to patients.
  • Heritage has the potential to increase its cultivation footprint to 6.4 million square feet.
  • Heritage has a potential combined extraction capacity of 300,000 kilograms through its Falkland and Fort Erie facilities.
  • The acquisition of Purefarma allows Heritage to secure IP from operators who have thousands of hours of experience successfully producing high-quality products.
  • International expansion opportunities through Purefarma.
  • The arrival of two Vitalis Q90 extraction systems allows CannaCure to process 150,000 kilograms of dried cannabis or hemp per year.
  • Heritage has a two-year Contract Manufacturing Agreement (“CMA”) with Cronos Group Inc. for the filling and packaging of vaporizer devices for the Canadian cannabis adult-use and medical market. Heritage will provide extract, fill and package vaporizer devices for the Spinach™ and PEACE NATURALS™ brands, utilizing multiple unique and proprietary formulations provided by Cronos Group.
  • Heritage has an open-ended ROFO supply agreement with Weed Me, Inc.
  • Heritage has a strategic supply and contract manufacturing agreement with Sugarbud Craft Growers Corp.
  • Heritage has acquired a 30 percent interest in Endocanna who has developed a home-based saliva collection kit that identifies clinically relevant genetic variants.
  • Exclusive right to sell Cheech’s Private Stash cannabis and cannabis-related products throughout Canada and internationally.
  • Applications are pending for retail locations in Alberta and future applications are expected to be made in British Columbia and Ontario.
  • Spooner brings over 20 years of experience, expertise and potential formulations in the natural health product sector.

The Canadian Cannabis Market

According to a report released by BDS Analytics, the Canadian cannabis market is expected to reach over C$5.2 billion by 2024. The growth of the market is being fueled in part by the demand for cannabis extracts as they provide an alternative to smoking and opioids as a way to manage pain relief and to treat other ailments.

Heritage’s Vertically-Integrated Model

Heritage has established a vertically-integrated presence in Canada. To achieve this, the company developed licensed producers, a prominent cannabis brand and acquired a cannabis extraction company. Each of these entities offers Heritage multiple market access points, product differentiation, control of its supply chain and competitive cost scalability.

Moving forward, the company intends to target retail and distribution channels within Canada to sell its uniquely branded products. Heritage also intends to penetrate the global cannabis markets with wholesale products and white-labeled offerings as well.

Heritage’s Extraction


In December 2018, Heritage finalized the acquisition of Purefarma Solutions Inc., a manufacturer and wholesale processor of premium extracted products based in Kelowna, British Columbia. Purefarma has been in operation since 2016 and is a significant provider of high-quality CBD and THC oils to the Canadian cannabis market. Voyage Cannabis has received over 50,000 kilograms of hemp feedstock that it is processing using two Vitalis Q90 extraction systems. The extraction process is overseen by the skilled and experienced professionals at Purefarma, who are adept at producing quality oils on a consistent basis.

Purefarma has also been a Cannabis Cup winner for three consecutive years, earning recognition for its vaporizers, concentrates and sativa strains.

Over the past few years, Purefarma has been developing its proprietary know-how and IP regarding three key extraction methods: CO2, hydrocarbon and alcohol. Additionally, the company has over 65 cataloged strains in its database, which is updated constantly.

Purefarma has contracted 1,600 acres of farmland in Saskatchewan for three years to grow hemp for their extraction processes. The supply commitment grows to 3,000 acres by the third year. The company is actively involved in ensuring that the hemp they process is of a high quality. The company is focused on using hemp as it contains less than 0.3 percent THC, making it efficient to extract CBD. Purefarma intends to also utilize the cannabis produced by Voyage Cannabis and CannaCure or other third-party products, if needed.

In addition to its IP and growing strain catalog, Purefarma has established relationships with distribution partners with retail channels throughout Canada. The company is also in discussions with several countries to create an extraction platform and supply chain. The company is looking to take advantage of these through the new licensed producer structures.

Purefarma has a supply agreement in place with Zenabis Global Inc., a Canadian licensed medical and recreational cannabis cultivator. The two companies intend to pursue the co-development of formulated CDB distillate, CBD isolate, liquid oil THC distillate and THC and CBD concentrates. Zenabis is tasked with supplying the dried flower and trim for extraction and Heritage is expected to provide both toll extraction services and formulated extracted oil products to Zenabis.

Purefarma has also signed an open-ended supply and processing agreement with Canntab Therapeutics Limited (CSE:PILL) for capsule manufacturing. The company is expected to provide processing services for hemp supplied by Canntab as well as packaging and distribution services. The two companies are also expected to support one another in regulatory submissions to distribute and sell Canntab’s oral cannabis products.

Purefarma has signed an LOI with Oregon-based Empower Clinics Inc. (CSE:CBDT) to form a 50/50 JV for the extraction of hemp for CBD oil production and formulated CBD products. The agreement would see Purefarma install extraction units and related downstream extraction equipment inside Empower’s existing licenced hemp processing facility. Once operational, the JV is expected to produce proprietary branded products using formulations from Heritage as well as manufacture Sollievo branded products that Empower distributes throughout its clinic network. These physician-staffed health clinics are located in Washington State, Oregon, Nevada and Arizona.

Endocanna Health

In July 2019, Heritage acquired a 30 percent interest in Endocanna Health Inc. in Los Angeles, California. Endocanna has developed the Endocannabinoid DNA (EndoDNA) test, a home-based saliva collection kit that identifies clinically relevant genetic variants related to each individual’s cannabinoid receptors and metabolism.

Once the test is complete, the results are paired with information on terpene variations and cannabinoid ratios that work best for that individual’s genetic results. The process was developed to help people participate in their own health choices and to make informed decisions on cannabinoid formulation and dosing.

The Endo·DNA Test Kit was launched in Canada in December 2019, and Heritage is working with the entire team at Endocanna to bring some of Heritage’s medical formulations to the marketplace. The information that the DNA kit provides, gives people the opportunity to more effectively use cannabis for their medicinal requirements.

Heritage’s Production


heritage cannabis cannacure logo

In November 2018, Heritage completed its acquisition of CannaCure Corporation, a licensed producer with a 122,000-square-foot former GMP facility in Fort Erie, Ontario. CannaCure has completed a phase one 24,260-square-foot build-out at its facility. In February 2019, the company announced the arrival of the first two Vitalis Q90 extraction systems at the facility. Two additional Vitalis Q90 extraction systems have been ordered  and are expected to be functioning early in 2020.

Heritage intends to continue to build out the facility as the company expands its extraction business to ensure it is able to meet the demands of the consumables market. Phase two construction is expected to include a 37,258-square-foot center with extraction equipment, expanded grow rooms and edible production capabilities.

Phase three is expected to include the building out of 44,169-square-feet of processing and distribution space. Heritage is in discussions with established brands and cannabis companies that require warehouses to ship their products across Canada and the globe, and this space is expected to be transformed to meet these requirements.

Heritage has signed a contract manufacturing agreement with Cronos Group Inc. (TSX:CRON) to fill and package vaporizer devices for Cronos’ SpinachTM and Peace NaturalsTM brands. The agreement has a two-year term with an option to extend for an annual potential contract value of $35 million. Heritage intends to source biomass from CannaCure and Voyage Cannabis and Purefarma will oversee the extraction aspects of the manufacturing process.

In November 2019, CannaCure signed a twelve-month supply and manufacturing agreement with James E. Wagner Cultivation Corporation (JWC) for the filling and packing of vape pen cartridges for Canadian recreational and medical markets. Under the agreement, JWC will provide CannaCure with supporting materials and a minimum of 100 kg per month of aeroponically-grown premium-grade cannabis biomass. In return, CannaCure is expected to use their proprietary direct-to-vape process to create reliable, quality vape pen products for the Canadian adult-use market.

Voyage Cannabis

Heritage owns a 75 percent interest in Voyage Cannabis Corp., a licensed producer operating in Falkland, British Columbia. Voyage Cannabis owns 13 acres of land and has a fully-constructed 15,500-square-foot production facility. Currently, four greenhouses are under construction with an additional eight to 16 greenhouses planned to be built within the next year. Once complete, the company is expected to have a total of between 50,000 and 82,000 square feet of growing space on the property.

Voyage Cannabis received its standard processing license and medical sales license from Health Canada, which is expected to give Heritage the ability to provide educational services and sell directly to patients with a proven medical need. Voyage Cannabis has already initiated the process of receiving 50,000 kilograms of hemp feedstock, which is expected to be used to create oils and other extracts.

heritage greenhouse

Heritage’s Retail

As part of its vertically-integrated model, Heritage intends to establish its own retail presence throughout Canada and the globe. The company has applied for brandable retail locations in Alberta, and intends to apply in Ontario and British Columbia when available.

Heritage’s Management Team

Clint Sharples — President, CEO and Director

Clint Sharples is a partner in First Growth Management (FGM), a small private equity management company formed in 2005. His primary roles for FGM include President and CEO of Modu-Loc Fence Rentals since 2009 (his role is to lead the overall corporate development and implementation of the strategic direction). In addition, Sharples is the Chairman of other companies in which FGM has invested, including Strategic Aviation Services Ltd., Sky Café Ltd., US Pressure Test Inc. and US Casing Services Inc.

His executive career began in 1995 when he was made Executive Vice ‍‍‍President of Superior Management Group, a national wood pallet company, and was instrumental in its growth, until its sale in 1998 to IFCO Systems. He became President of IFCO Canada in 2002 and led a management buyout in 2005, creating Paramount Pallet Inc. Clint served as CEO of Paramount until its sale in 2011.

Erin Prohaska – CFO 

Erin Prohaska is a dynamic business professional with over 15 years of experience leading finance and operations teams in diverse industries. Prior to joining Heritage, Prohaska was the CFO of a multinational consulting engineering firm with over 2,500 employees. Further, Prohaska has managed and advised notable family offices on their finances and business holdings, including venture capital funds.

Dan Phaure – COO 

Dan Phaure has held key leadership roles with a number of companies within the renewable, technology and infrastructure sectors. Over his 20-year career, he has consulted and advised numerous companies in North America, Europe and Asia, providing strategic guidance in relation to M&A activity, capital transactions and operational changes. As a result of his corporate and capital markets background, he brings a senior leadership skill set to Heritage that will drive the buildout of our current and future opportunities as well as the diligence and execution of our partnership strategy. Phaure has also served on various boards with exposure to both Canada and US.

Dr. Chris Spooner — Chief Science Officer

Dr. Chris Spooner is a North Okanagan naturopathic doctor with extensive academic, clinical and business development experience. With over 20 years of experience owning and operating integrative care clinics, Dr. Spooner brings a targeted skill set that encompasses nutraceutical development, patient care protocols and clinic development. He is a member of numerous medical advisory boards, including of Atrium Innovations, a division of Nestlé Health Sciences, Translational Life Sciences and Kisameet Glacial Clay. In addition to this, Dr. Spooner has over a decade of experience on the board of directors of the College of Naturopathic Physicians of British Columbia.

Gary Whitaker— Vice President, Operations

Gary Whitaker has vast experience working with Health Canada and regulatory authorities, in addition to three decades working directly with pharmaceutical manufacturers. For twenty years, he held a leadership role in the pharmaceutical manufacturing and packaging space. Whitaker received formal training in Pharmaceutical Chemistry and Pharmaceutical Water System Microbiology from Seneca College along with Validation with an Engineering Perspective and Cleaning Validation from Pharmaceutical Sciences Group. Over the last four years, Whitaker has plied his trade in the cannabis industry and now holds the position of Vice President, Operations.

Donald Ziraldo – Director and Chairman 

Donald Ziraldo is a historic Canadian winemaker and a Member of the Order of Canada. He and his co-founder were the founders of Inniskillin winery in Niagara. Ziraldo was granted the first winery license in Ontario after prohibition. His talent and perseverance have helped to make Canadian icewine a globally recognized luxury brand. Ziraldo built his own brand of icewine and Riesling table wines under his name and continues to be hailed as one of the most important figures in Canadian wine history.

Celine Arsenault – Director

Celine Arsenault is an experienced financial executive with over 20 years of experience in international business and financial management. Her vast experience stems from several senior financial executive positions with various public and private companies in renewable energy, insurance, private equity, electricity and telecommunications sectors. In addition to her extensive background, she brings disciplined financial reporting and governance skills to the board, having served on numerous non-profit boards and committees.

Graeme Staley – Director 

Graeme Staley provides the technical direction and execution of the team’s strategies based on over 20 years of project related experience. He has senior design experience in refrigeration and associated mechanical disciplines. Staley’s roots started on the family vineyards in Kelowna and includes experience in winery sales, assistant wine maker and vineyard design and build.

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The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with Heritage Cannabis Holdings Corp. and seek advice from a qualified investment advisor.