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Green light for cannabis joint venture

Cannabis
11 March 2020 10:26 (EDT)
Empower Clinics - CEO, Steven McAuley.

Source: Empower Clinics.

Heritage Cannabis Holdings Corp (CSE:CANN) and Empower Clinics (CSE:EPW) have progressed in their Oregon cannabis joint venture.

The joint venture has advanced to the stage of the installation of extraction and post production equipment at Empower Clinics cannabis production facility in Sandy, Oregon.

The equipment is a requirement in the extraction process for CBD oil products, with production expected to begin immediately.

The equipment being installed includes packaging equipment and the extraction equipment.

The CBD products will be part of an overall strategy manufacturing proprietary formulations, tolling services and third party white labelling services for other distributors throughout the United States.

The proprietary branded products will be distributed throughout Empower’s dispensary’s in Oregon and Arizona and through their e-commerce store.

This marks a significant step for Heritage, who have been active players in the Canadian cannabis market but are just starting to dip their toes into the lucrative U.S market

The set up of the production facility is being implemented by Heritage Cannabis staff, as they have significant experience in the extraction process from Heritage’s various production facilities in Canada.

CEO of Heritage Clint Sharples, believes this deal will benefit the both companies.

“We are very pleased to be advancing our U.S strategy through this mutually beneficial partnership with Empower, which provides Heritage ease of access to the world’s largest cannabis market.

“The installation of extraction units is the next phase of the joint venture and another step toward successfully furthering our growth strategy

CEO of Empower Steven McAuley said “Having the backing of an experienced partner with the financial strength of Heritage Cannabis is proving to be so beneficial for the development of our first extraction facility,” he said

Heritage Cannabis are a significant financial force within the Canadian cannabis industry, with the holding company made up of 5 operating subsidiaries.

Heritage Cannabis Holdings (CANN) is down 4.2 per cent, with shares trading at $0.22

Empower Clinics (EPW) is up 12.5 per cent, with shares trading at $0.45 at 2:35 PM EST.

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