Mr. David Schwede reports

HERITAGE CANNABIS OFFICIALLY BEGINS SALES IN THE RECREATIONAL MARKET IN THE STATE OF NEW YORK

Heritage Cannabis Holdings Corp. has commenced sales of recreational products in the state of New York. Manufacturing of Heritage's RAD branded vape and concentrate products began in the state during the summer, and the company has achieved its first commercial sale in New York -- Heritage's third state where its brands are now available.

Heritage continues to target the legal markets in the United States with an asset light model, and in New York has a manufacturing and distribution agreement with a local partner that produces and sells products using Heritage's innovative formulations and flavours that the RAD brand is known for. Heritage plans to introduce additional RAD products including live resin, rosin and infused prerolls, and is expanding product offerings with additional Heritage brands.

The New York market is projected to be valued at over $4-billion within five years according to Forbes and is expected to be second only to the California market in the U.S. and approximately the size of the Canadian legal market. With strong market growth projected in New York, Heritage can capture a piece of this market with its well-developed, well-recognized RAD branded products. Heritage launched six SKUs into the vape category with the intention of doubling that and adding SKUs in the concentrate and preroll categories by the end of Q1 2024.

"As one of the only Canadian companies selling their branded product in the United States, we are thrilled to be successfully expanding our footprint into more states and getting a foothold in the early recreational market in New York with this inaugural sale," said David Schwede, chief executive officer of Heritage. "The states where we are selling products offer a faster path to profitability with stronger margins than those under the Canadian model. We see enormous potential in the New York market and with these strong margins and capital efficient approach we intend to have a strong presence in the state."

About Heritage Cannabis Holdings Corp.

Heritage Cannabis is a leading cannabis company offering innovative products to both the medical and recreational legal cannabis markets in Canada and the U.S., operating under two licensed manufacturing facilities in Canada. The company has an extensive portfolio of high-quality cannabis products under the brands Purefarma, Pura Vida, RAD, Premium 5, Thrifty, Adults Only, feelgood., the CB4 suite of medical products in Canada and ArthroCBD in the U.S.