Toronto’s Heritage Cannabis Holdings Corp. (CSE: CANN) (OTCQX: HERTF) made its first shipment of live resin to Australia and has now received a second purchase order of the same size that will be shipped there this summer.
The multinational cannabis operator announced Tuesday that it had sent 15,000 units of live resin concentrate vape cartridges to an unnamed “well-established” company in Australia. Live resin is a variety of cannabis concentrate that is created with plants that are frozen immediately after being harvested.
The company has import permits in Australia and says the cannabis market there is expected to grow significantly in the coming years. It was valued at US$66 million last year and will be expanding at a compound annual growth rate of 29.6 per cent to approximately US$405.3 million between now and 2030, according to San Francisco’s market research firm Grand View Research.
“Countries outside of Canada offer additional revenue streams along with strong margins that provide lucrative opportunities for Heritage,” said the company’s CEO David Schwede.
“We continue to experience an increased number of requests for our live resin, live rosin and honey oil concentrates from international buyers,” he added.
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Subsidiaries of Heritage Cannabis include Purefarma, Thrifty, feelgood, Pura Vida, Adults Only, Premium 5 and ArthroCBD in the United States. The company supplies the medical and adult-use markets in Canada and the U.S. and has two Canadian manufacturing facilities.
Heritage recently entered the adult-use cannabis beverage market in Canada through a sales and distribution agreement with Vancouver’s BevCanna Enterprises Inc. (CSE: BEV) (OTCQB: BVNNF) and entered New York’s recreational market in May.
Medical cannabis was legalized in Australia in the fall of 2016 and the country is yet to regulate an adult-use market. Penalties for possession of cannabis without a prescription vary between states and territories in the country.
Heritage shares rose by 20 per cent Tuesday to $0.015 on the Canadian Securities Exchange.
rowan@mugglehead.com
