High Tide's Private Label Cannabis Partnership With Heritage And Loosh Brands, Heritage To Enter Missouri

Canadian cannabis retailer High Tide Inc. HITI HITI 2LYA announced Monday that it has entered into two white label partnerships with Heritage Cannabis Holdings CANN HERTF and cannabis edibles manufacturer Loosh Inc. which is doing business as Loosh Brands.

Under the terms of the agreements, both Heritage and Loosh opted to manufacture High Tide's "Cabana Cannabis Co." branded shatter and THC gummies, respectively, for distribution in Ontario, Manitoba, Saskatchewan and Alberta.

Based in Calgary, Alberta, the company expects to distribute its products in additional Canadian jurisdictions in due course.

Raj Grover, the company's president and CEO, said that the new white label rollout "has been in the works for quite some time."

"We have taken a measured approach in launching our own house-branded products given the oversupply of branded biomass in the Canadian market," Grover further explained. "That's why we are moving cautiously by making an entry into the 2.0 category, which is much less crowded."

Grover revealed that High Tide is also negotiating with Canadian licensed producers to bring select products from the FABCBD catalog into its store network.

Currently, the company operates 93 branded retail stores in Canada, with the latest stores having opened in Brampton and Ajax.

David Schwede, CEO and president of Heritage, a cannabis producer, said that this deal allows the company to "strengthen and expand" its concentrates portfolio.

Heritage Secures Financing To Accelerate Its Entry In Missouri

In the meantime, the Toronto-based Heritage is poised to debut in Missouri after announcing the execution of a term sheet with Merida Capital Partners IV LP and its affiliates for up to $1.5 million in senior unsecured convertible promissory notes on Monday.

In May, Heritage announced a five-year collaboration with Como Health LLC, doing business as 3Fifteen Primo Cannabis, which enabled the launch of Heritage branded products in Missouri. The Heritage branded products are expected to hit the shelves in Missouri by the end of 2021.

Price Action

High Tide's shares traded 0.92% higher at $7.66 per share during Monday morning's pre-market session.

Heritage's shares traded 0.89% lower at $0.067 per share after market close on Friday.

Photo: Courtesy of High Tide Inc.