Heritage to acquire Bloom Brands, a leading brand based in California — Greenway Magazine – Greenway

Acquisition provides an immediate market footprint in six states – California, New Mexico, Oklahoma, Washington, Nevada and Arizona Fiscal 2020 revenue was in excess of USD$11million Distribution platform accesses over 500 retailers across a population base of approximately 70 million people Heritage becomes one of the most widely distributed house of cannabis brands in North America

Heritage Cannabis Holdings Corp. (CSE: CANN)(OTCQX: HERTF) (“Heritage” or the “Company”), is pleased to announce that it has entered into a non-binding letter of intent (the “Agreement”) to purchase all of the issued and outstanding common shares of California based Capna Intellectual/dba Bloom Brands (“Bloom”) in an all share transaction.

Under the terms of the Agreement, Bloom will receive approximately USD$15 million of Heritage common shares in two tranches. The first tranche of USD$7.5 million will be at a deemed value of CA$0.14 per Heritage share, followed by a second tranche of shares six months after closing at a deemed value of either the greater of CA$0.16 or a 15% discount to the 15-day VWAP. The Agreement also includes potential milestone payments of up to an additional USD$17 million of Heritage common shares contingent upon Bloom achieving certain financial targets over a twelve-month period. All shares issued as part of the Agreement will be subject to lock-up provisions and applicable statutory hold periods.

Bloom launched their recreational brands in California in 2016 upon cannabis legalization in the state. Since then, Bloom has built a scalable, asset-light business model with an award- winning portfolio of products. Bloom operates a hybrid business model where brands are owned in California and licensed to partners in New Mexico, Oklahoma, Nevada, Arizona, and Washington. This model allows for a cost effective and rapid new market launch to capture early shelf space. In addition to the distribution arrangement, Bloom also has

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