Heritage Cannabis is pleased to announce that it has entered into a Letter of Intent to form a Joint Venture Partnership with Empower Clinics Inc.
Heritage Cannabis Holdings Corp. (CSE:CANN) (“Heritage” or “Company”) is pleased to announce that it has entered into a Letter of Intent (“LOI”) to form a Joint Venture Partnership (“JV”) with Empower Clinics Inc. (CSE: CBDT) (“Empower”) based in Sandy, Oregon USA for the extraction of hemp for CBD oil production, and formulated CBD products.
Terms of the LOI will have Heritage and Empower each with a 50% ownership of the Joint Venture. Heritage, via its wholly owned subsidiary Purefarma Solutions Inc. (“Purefarma”), will install extraction units and related downstream extraction equipment inside Empower’s existing licenced hemp processing facility. In addition, Purefarma will train and supervise the staff on the proprietary methods of extraction and oil production that it produces in Canada. The JV will be equally funded by both companies with Heritage investing an initial $500,000 for start-up funds as the JV completes the build out and the secures high quality hemp supply from local growers.
Once operational, the JV will begin producing proprietary branded products for Empower’s corporately owned physician staffed health clinics in Washington State, Oregon, Nevada and Arizona. These clinics include Sun Valley Health (“Sun Valley”), a subsidiary of Empower, which has direct marketing access to over 165,000 patients and growing as Sun Valley expands its franchised network nationwide. The JV will utilize formulations from Heritage, as well as manufacture Sollievo branded products that Empower distributes throughout its clinic network.
“By moving forward with Heritage in this JV, it allows us to execute our growth strategy more quickly and efficiently. We will expand our clinics and CBD product offerings throughout the USA via our franchise model, as we aim to become a significant part of the cannabis wellness marketplace.” states Steven McAuley, Empower’s Chief Executive Officer.
The JV will also look to manufacture white label products for other distributors throughout the USA, and it is currently in talks with several potential customers to produce tinctures, topicals, gel caps and formulated bulk CBD oil.
“This is a big step for Heritage as we expand our unique capabilities south of the border into the USA. We are fortunate to be working with Empower as they bring distribution, and a licensed facility which will allow us to begin filling an order pipeline immediately.” says Clint Sharples, CEO of Heritage “Since our 30% acquisition of Endocanna Health in California, they have introduced us to many quality opportunities, including this one with Empower, and are targeting many more in the future.”
About Heritage Cannabis Holdings Corp.
The Company is 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 that is focused on cannabis based medical solutions. Heritage as the parent Company, is focused on providing resources for its subsidiaries to advance their products or services to compete both domestically and internationally.
About Empower Clinics Inc.
Empower is a vertically integrated and growth-oriented CBD (cannabidiol) life sciences company, and a multistate operator of medical health and wellness clinics, operating the Sun Valley Health clinic brand, for its nine corporate locations and for franchises in the United States. As a CBD product manufacturer under the Sollievo brand, the company distributes its lines through clinics, on-line and through retail partners. Extraction operations are currently being developed in the company’s new extraction facility in Oregon.
ON BEHALF OF THE BOARD OF DIRECTORS OF HERITAGE CANNABIS HOLDINGS CORP.
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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.