Mr. David Schwede reports

HERITAGE CANNABIS ANNOUNCES NEW RAD PRODUCTS, NEW JUICY HOOTS BRAND AND SUCCESSFUL ADULTS ONLY BRAND PERFORMANCE

Heritage Cannabis Holdings Corp. has launched new products and discussed brands recently added to Heritage's portfolio.

Adults Only

Adults Only targets the high-octane consumer with a high-quality cannabis experience. Initially launching with liquid diamond vapes, the brand makes the Canadian cannabis landscape more fun and entertaining.

Since its launch, the brand has enjoyed great success, already ranking as a top-performing vape brand in Canada, with individual products under the brand currently coming in at fifth and sixth in the Ontario when it comes to revenue. With new products under the brand being launched, Heritage expects its Adults Only brand ranking at 11th place across all licensed producers to continue to climb.

RAD Fuel Cell

RAD offers high-quality products at affordable prices, delivering quality concentrates and competitive price points to meet the needs and preferences of all types of cannabis consumers while effectively harnessing the captivating power of nostalgia in the brand.

As one of Heritage's signature brands, the company is launching RAD Fuel Cell vape cartridges across Canada. These new vape cartridges are made with custom premium ceramic hardware and are already seeing strong penetration in the market.

Juicy Hoots

The Juicy Hoots brand is all about flavour and a one-of-a-kind product experience. Housed in premium custom hardware, these vape cartridges offer the juiciest hit with every sip.

Heritage is currently undertaking the national launch of Juicy Hoots with products already shipped to Alberta and Ontario in early January.

David Schwede, chief executive officer of Heritage, said: "At Heritage, we recognize the cannabis market is vast and competitive to say the least and we are addressing that by differentiating our products and brands to build and maintain a loyal customer base. We have one of the most attractive collections of vape products, from our brand look and hardware design to our unbeatable flavour profiles, we are gaining traction across the country and excited to propel our new brands to the same success as Adults Only. As we continue to extend our brands and products, we expect to see the success reflected in our revenue and will apply our differentiated approach to additional categories when the time is right."

Additionally, Heritage announces that the company has issued common shares in the capital of Heritage to certain employees and management of the company as consideration for annual bonuses and sales commissions in respect of their performances in the 2023 fiscal year. The company sought and was granted relief to the Canadian Securities Exchange's minimum price rule, and issued 44,549,726 shares at a price of 1.5 cents per share.

Mr. Schwede continued: "Our people put in a tremendous amount of work during 2023 to get our products and brands where they are today in both Canada and the U.S. and they deserve some reward and recognition for their efforts. While the capital markets have yet to reflect this traction and as we are still moving toward cash-flow-positive territory, I will be forgoing a bonus payment at this time."

Heritage also announces that the company has issued a new warrant certificate to NFS Leasing Canada Ltd. (the lender) on Jan. 22, 2024, entitling the lender to subscribe for and purchase up to 1,454,226 common shares in the capital of Heritage at an exercise price of five cents per common share. The warrants have an expiry date of Jan. 22, 2027.

The issuance of the warrants to the lender is subject to the final approval of the Canadian Securities Exchange. All securities issued will be subject to a four-month hold period, which will expire on the date that is four months and one day from the date of issue.

About Heritage Cannabis Holdings Corp.

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

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