Hemp stocks Heritage Cannabis Holdings (CSE:CANN) (OTCQX:HERTF) and Empower Clinics (CSE:CBDT) (OTCQB:EPWCF) have announced a new partnership to produce hemp-derived CBD products.
The joint venture will see Heritage Cannabis Holdings contribute its expertise in cannabis formulations to produce branded hemp-derived products for Empower's health clinics in Washington, Oregon, Nevada, and Arizona. The terms of the deal will see both companies hold a 50% stake in the partnership. Through its subsidiary Purerfarma Solutions, Heritage will install extraction units and other related equipment at Empower's 5,000 square foot facility in Sandy, Oregon.
"This is a big step for Heritage as we expand our unique capabilities south of the border into the USA. We are fortunate to be working with Empower as they bring distribution and a licensed facility which will allow us to begin immediately filling an order pipeline," said Clint Sharples, CEO of Heritage Cannabis. "Since our 30% acquisition of Endocanna Health in California, they have introduced us to many quality opportunities, including this one with Empower, and are targeting many more in the future."
The announcement follows a series of promising ventures that Heritage Cannabis has entered into in recent weeks and months as a hemp stock. Last week, the company announced a deal to purchase a bulk order of cannabis biomass, and a "right to first offer" on future cannabis supply from Weed Me Inc. Also last week, the company signed a Hemp Processing Agreement with Truro Cannabis Co to source hemp produced by Truro for the manufacturing of CBD oil and formulated products.
This series of proactive partnerships have helped contribute to considerable growth for Heritage Cannabis Holdings in 2019. Its current valuation of $0.39 is an increase of over 135% in the year-to-date. With the CBD market in the US experiencing unprecedented demand following the passage of the Farm Bill last year, Heritage Cannabis looks like hemp stock that could make big gains going forward.
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