MMJPhytotech
MMJ Investment Portfolio Update – Harvest One Cannabis
MMJ Group Holdings Limited (ASX: MMJ/OTC Code MMJJF) (“MMJ”) is an Australian-listed company whose core business is holding minority investments along the cannabis value-chain in Australia, Canada and Europe. MMJ is also able to make investments in sectors outside of cannabis, such as but not limited to, natural resources, pharmaceuticals and software services technology.
Harvest One Cannabis – Update
Harvest One Cannabis (Harvest One or HVT) (TSX-V: HVT) is a listed global cannabis-infused Consumer Products Goods (CPG) company that develops and distributes premium health, wellness and selfcare products with a market focus on sleep, pain and anxiety. HVT owns and operates two subsidiaries: Dream Water Global and LivRelief – more detail on HVT may be found at https://uwcl.com.au/portfolio/.
MMJ is pleased to provide an update on significant events in HVT operations during February 2021 including:
- a major capital raising;
- the sale of non-core assets; and
- the execution of Asian product distribution agreement.
These events have coincided with a 116% increase in the value of MMJ’s investment in HVT during February 2021 which now totals $13.4m (representing 27% of MMJ’s investment portfolio as at 25 February 2021). The MMJ’s net asset value per share1 has increased from 18.2 cents as at 31 January 2021 to 21.2 cents as at 25 February 2021.
MMJ believes that the rerating of HVT’s share price in February 2021 and the size of the HVT capital raising announced on 25 February 2021 provides recognition by the investor market of the benefits from HVT’s Strategic Review Process announced in early 2020. The execution of the HVT Strategic Review has resulted in non-core asset sales, operating cost reductions and the focus on the core business as a global developer and distributor of cannabis-infused Consumer Products Goods products.
The recovery in the HVT share price from CAD9 cents to CAD19.5 cents in the past twelve months has also validated the decision of MMJ to provide a short-term CAD2m loan2 (the Loan) in February 2020 which allowed HVT the flexibility needed to continue the implementation of its Strategic Review while continuing to evaluate longer-term financing options. The HVT share warrants (refer Table One below) issued to MMJ as compensation for advancing the Loan now have a market value of CAD2.4m3.
1 based on MMJ’s unaudited financial accounts as at 25 February 2021
2 Repaid in full in August 2020
3 Based on valuation as at 25 February 2021 – acquired for nil consideration by MMJ