Heritage Cannabis Holdings Corp. recently announced that it has entered into an agreement to acquire all of the issued and outstanding equity of Opticann Inc., a Colorado based oral and topical cannabinoid company with the rights to exclusively sell CBD and CBG products made with the patented VESIsorb (R) drug delivery system for optimized absorption and stability.
Under the terms of the Agreement, Opticann will receive initial consideration of up to CDN$5.0 million of common shares and warrants of Heritage. The Agreement additionally includes a series of possible earn-outs with a potential value of up to CDN$30.0 million contingent upon achieving significant financial and enterprise milestones over the next five years. Opticann was founded by several former executives of MedReleaf Corp., a Canadian medical cannabis company that was acquired by Aurora Cannabis Inc. for $3.2 billion in 2018.
Founded by former MedReleaf executives, Opticann provides strategic access to the rapidly growing multi-billion dollar U.S. CBD market.
Opticann has a supply and distribution agreement with Geocann LLC, a global cannabis organization with the exclusive worldwide rights to the patented VESIsorb (R) delivery technology for cannabinoids, terpenes, and flavonoid formulations.
According to a press release from Heritage Cannabis, the agreement between Opticann and Geocann provides Opticann exclusive distribution rights to brand and market a select portfolio of VESIsorb (R) formulated oral and topical CBD and CBG products to major U.S. retailers that dominate the U.S. food, drug, and mass retailer market, including CVS, Walgreens, Rite-Aid, and Walmart, among others.
“The patented VESIsorb (R) technology enables the creation of next generation CBD and CBG products that are proven to be far superior in performance over other products in the market”, remarked Neil Closner, Chairman of the Board of Opticann. “These products are backed by human clinical data published in a peer reviewed scientific journal showing enhanced absorption and performance versus other CBD and hemp products. These products are manufactured within Geocann’s advanced GMP compliant and highly scalable supply chain, and are ideal for building leading brands at large national U.S. retailers. We are looking forward to bringing the Opticann team and this technology to Heritage and to successfully executing the business plan.”
“The acquisition of Opticann is a strategically significant move, and an important milestone for Heritage as we expand our expertise and look to advance our plan to grow our U.S. presence and participate in the rapidly growing multi-billion dollar U.S. CBD market,” stated Clint Sharples, CEO of Heritage. “We are excited to have Opticann join the Heritage family and have the talented and proven medical cannabis executives and team members from the former MedReleaf as part of Heritage’s future success. Heritage will also leverage Opticann’s international experience and relationships with plans to build an international medical product sales footprint.”
“The increased awareness, acceptance and utilization of science-backed formulations is emerging in the cannabinoid marketplace, and the exceptional pedigree of Heritage and Opticann will make VESIsorb (R) branded hemp products as market leaders in the pharmacy mass market,” said Jesse Lopez, founder and CEO of Geocann. “The founders of Opticann have a successful track record of building brands for mass retailers and delivering value to the cannabis and hemp industries with a focus on differentiation based on superior innovation, unmatched quality, consumer education, and strategic retail partnerships.”
This transaction is subject to customary closing conditions and is expected to be completed by the end of August 2020.
