Heritage Cannabis Holdings Corp. and Zenabis Global Inc. have entered a Right of First Offer Agreement and Cannabis Concentrate Program Agreement.
Heritage Cannabis Holdings Corp. (CSE:CANN, OTC:HERTF) (“Heritage” or “Company”) announces that further to the press release dated May 9, 2019, Heritage and Zenabis Global Inc.(“Zenabis”) have entered a Right of First Offer Agreement (“ROFO”) and Cannabis Concentrate Program Agreement (the “Extraction Agreement”) effective November 6, 2019 via Voyage Cannabis Corp. (“Voyage”) a Licenced subsidiary of Heritage.
Under the terms of the ROFO the Company will have the right of first offer to acquire high quality trim cultivated by Zenabis, which is not otherwise committed under a pre-existing purchase agreement, from any of its licensed facilities. Zenabis shall provide written notice to Heritage specifying the amount of product available for purchase and the material terms and conditions, including the purchase price and a certificate of analysis (the “Offer Notice”). Heritage will have the first right to purchase any or all of the trim available by executing a Purchase Notice and binding Purchase Agreement. Trim that is not purchased by Heritage may be sold by Zenabis to any third party at a price per gram no lower than the price set forth in the Offer Notice. The ROFO is for an initial term of twelve months and will automatically renew for successive twelve month periods, unless terminated via written notice by either party.
Under the terms of the Extraction Agreement, Zenabis will supply Voyage with select cannabis biomass for processing into distillate. Heritage will deliver the final product by the end of 2019.
“We are pleased to see our relationship with Zenabis expand to include further commitments on production and formulation” said Clint Sharples, CEO of Heritage. “We are bringing together our specialized capabilities to address the expanding cannabis market and the growing demand for new products.”
Andrew Grieve, CEO of Zenabis, stated, “This agreement between Zenabis and Heritage is an important step for us as we look to grow our product offerings. As the market expands, we will continue to fill our distribution channels with high quality options.”
About Zenabis Global Inc.
Zenabis is a significant Canadian licensed cultivator of medical and recreational cannabis, and a propagator and cultivator of floral and vegetable products. Zenabis employs staff coast-to-coast, across facilities in Atholville, New Brunswick; Delta, Aldergrove, Pitt Meadows and Langley, British Columbia; and Stellarton, Nova Scotia. Zenabis currently has 57,000 kg of licensed cannabis cultivation space across four licensed facilities. Zenabis has 3.5 million square feet of total facility space dedicated to a mix of cannabis production and cultivation and its propagation and floral business.
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.
ON BEHALF OF THE BOARD OF DIRECTORS OF HERITAGE CANNABIS HOLDINGS CORP.
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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 ability to obtain export permits, prices for biomass, demand for medical and recreational cannabis, and acceptance of cannabis products in foreign jurisdictions– 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.