Premium 5 will receive initial consideration of CDN$21.0 million of common shares of Heritage
Heritage Cannabis Holdings Corp. (Heritage), has announced that it has entered into a definitive agreement to acquire all of the issued and outstanding securities of Premium 5 Ltd., a Canada-based recreational and medical cannabis company that creates high-quality full-spectrum concentrates under the brand Premium 5.
Premium 5 is a leader in developing and launching products, proven by successfully introducing one of the first hydrocarbon products in the Canadian recreational and medical markets as well as becoming the first to launch live resin vapes. It currently offers two sought-after brands in eight provinces across Canada, as well as Shelter Market and Shoppers Drug Mart.
Premium 5 offers a wide range of high-quality products that encompass premium, core, and value-priced brands in both the recreational and medical markets, creating a leading portfolio of products in the Cannabis 2.0 space focused on derivative concentrates. It is best known for its namesake brand – Premium 5 which is first in the premium hydrocarbon and solventless concentrates category, as well as the newly launched RAD value brand which is first in the value hydrocarbon concentrate, flower and distillate vape categories.
Under the terms of the Agreement, Premium 5 will receive initial consideration of CDN$21.0 million of common shares of Heritage, plus additional Heritage common shares to compensate the shareholders of Premium 5 for the Net Working Capital of Premium 5 as of the closing date. The Agreement additionally includes a series of revenue growth and gross margin milestones over the next 24 months to earn potential consideration of up to an additional CDN$20.0 million payable in common shares of Heritage.
