Completes Capital Raising and Accelerates Entry Into Australian Medical Cannabis Market
Perth, Oct 23, 2015 AEST (ABN Newswire) - MMJ PhytoTech Limited (
ASX:MMJ) is pleased to announce that it is accelerating its strategy to enter the Australian Medical Cannabis market, following the indicated regulatory reform by the Federal Government to legalise the use of cannabis for medical purposes and establish a licensed growing program to provide a safe and local source.
Highlights:
- MMJ PhytoTech accelerates its entry into the Australian medicinal cannabis market as a result of the indicated regulatory reform by the Federal Government
- MMJ has engaged Australian based Legal Firm Piper Alderman as a strategic partner to guide MMJ on regulatory and licensing approvals in the Australian market
- MMJ has completed a successful share placement of $2m from a leading European based Institutional Investor
- As a result of the fund raising, MMJ is capitalised to expedite and execute its entry into the Australian market whilst continuing its European, Canadian and Israel operations
MMJ Phytotech set to enter the Australian Market
Andreas Gedeon, Managing Director, MMJ PhytoTech Medical commented:
"We're incredibly supportive of the recent announcement from the Federal Government and it is this which has driven our decision to expedite our strategy to enter the Australian market. It is important that we capitalise on the opportunity that has opened up in Australia and this is key to enhancing value for our shareholders. Our background within the medical cannabis sector provides us with the necessary experience and expertise to quickly establish ourselves as a leading player in the domestic space."
Appointment of Piper Alderman as Strategic Advisor
The Company has appointed leading national legal firm Piper Alderman as strategic advisor in Australia. Piper Alderman has been engaged to partner with MMJ and advise on the regulatory approvals and licensing process in the domestic Australian market.
Piper Alderman is a commercial law firm with over 300 employees throughout Australia. Piper Alderman's strength within the pharmaceutical and healthcare sector positions them as the ideal partner to guide MMJ through the Australian medical cannabis regulatory and licencing process.
Completion of Capital Raise to Fund Entry into Australian Market
MMJ has successfully completed a placement of $2 million via the Company's corporate advisor Merchant Corporate Finance to a leading European based institutional investor with a proven investment track record within the healthcare and resources sectors. Further details are set out in the attached Appendix 3B.
The $2 million investment will provide MMJ with capital to fund its entry into the Australian market.
Daniel Fraser - Head of Corporate Finance at Merchant Corporate Finance, commented:
"We are encouraged by MMJ's move into the Australian market and are pleased to continue to support MMJ's growth domestically and internationally. MMJ provides investors with a unique opportunity due to its integration of operations across the value chain. MMJ is one of the only vertically integrated listed junior medical cannabis companies. MMJ is well placed to take advantage of the huge opportunity within the Australian market and it is this sentiment which is shared by our investors."
Notice Under Section 708A(5)(e) of the Corporations Act
The Company gives this notice pursuant to section 708A(5)(e) of the Corporations Act 2001 (Cth) (Corporations Act).
The Company advises that it has issued Securities per the attached Appendix 3B and those Securities were issued without disclosure to investors under Part 6D.2 of the Act. The Company, as at the date of this notice, has complied with:
(a) the provisions of Chapter 2M of the Act as they apply to the Company; and
(b) section 674 of the Corporations Act.
As at the date of this notice, there is no information to be disclosed which is excluded information (as defined in section 708A(7) of the Corporations Act) that is reasonable for investors and their professional advisers to expect to find in a disclosure document.
About MMJ Group Holdings Ltd
MMJ Group Holdings Ltd (ASX:MMJ) is a global cannabis investment company. MMJ owns a portfolio of minority investments and aims to invest across the full range of emerging cannabis-related sectors including healthcare, technology, infrastructure, logistics, processing, cultivation, equipment and retail. For MMJ's latest investor presentation and news, please visit: https://www.mmjphytotech.com.au/investors/
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