Thursday, September 18, 2025

Heritage Cannabis To Acquire Premium 5 In $21.0 Million All-Stock Transaction

Heritage Cannabis (CSE: CANN) has signed a definitive agreement to acquire that of Premium 5 Ltd, a Canadian recreational and medical cannabis firm focused on concentrates. The transaction will see Heritage pay $21.0 million for the company via common shares, with additional earnouts of up to $20.0 million being in play.

Premium 5 is heavily focused on concentrates within the Canadian market, with the firm being known as one of the first companies to produce hydrocarbon products as well as live resin vapes. The firm currently has distribution across eight provinces, as well as through Shoppers Drug Mart and Shelter Market. The company is behind both the Premium 5, as well as RAD brands of products.

To date, the company has reportedly received orders for $10 million worth of product from retailers since its launch this summer, while operating at a run rate of $20 million in annual revenues. The acquisition as a result will add much needed topline revenue to Heritage Cannabis, while also adding sought after brands with reportedly strong margins.

The transaction is to consist of all-stock compensation, with Premium 5 being acquired for $21.0 million worth of common shares of Heritage, in addition to further shares for the net working capital currently held by the company. Revenue and margin milestones are also in place to make the selling parties eligible for up to $20.0 million in additional compensation. The price at which the shares are to be issued was not indicated.

The transaction is anticipated to close by the end of January 2021.

Heritage Cannabis last traded at $0.15 on the CSE.


Information for this analysis was found via Sedar and Heritage Cannabis. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.

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