Receives Notice of Pre-Licence Inspection at Duncan
Perth, Jan 14, 2016 AEST (ABN Newswire) - MMJ PhytoTech Limited (
ASX:MMJ) ("MMJ" or the "Company") is pleased to announce its wholly-owned subsidiary United Greeneries ("UG") has received notification from Health Canada ("HC") that an MMPR Pre-License Inspection of UG's Duncan Facility will be conducted on February 1, 2016. This announcement marks the most important milestone passed to date by UG and positions MMJ well to become one of the few companies worldwide legally allowed to produce MC within a federally regulated regulatory framework.
Key Points:
- MMJ PhytoTech Limited ("MMJ") notified by Health Canada ("HC") that a Pre-License Inspection of the Company's Duncan Facility will commence February 1, 2016
- A successful Pre-License Inspection is the final step to receiving a cultivation license from HC under the Marihuana for Medical Purposes Regulations ("MMPR")
- Notice of Pre-License Inspection is considered the most significant value catalyst for MMPR applicants
- In all cases known to MMJ, every MMPR applicant that has received notice of Pre-License Inspection has subsequently been granted an MMPR license
- MMJ is well positioned to soon be one of only 25 companies legally allowed to produce Medical Cannabis ("MC") in Canada
Andreas Gedeon, Managing Director of MMJ PhytoTech, commented:
"Notice from Health Canada of an imminent Pre-License Inspection of the Duncan Facility is extremely positive news. For MMJ and its shareholders, an MMPR license at the Duncan Facility will have enormous strategic and fundamental value. Further, Duncan's status as a Licensed Producer will be key to MMJ's evolution into a diversified, revenue generating, integrated medical cannabis company. This is a significant event for the Company, its employees and its shareholders."
Notice of MMPR Pre-License Inspection
On January 12th, 2016 (PST) UG received verbal and written confirmation from HC of its intention to conduct an MMPR Pre-License Inspection of UG's Duncan Facility over a two and a half day period commencing February 1, 2016. The inspection will take place onsite at the Duncan Facility and is designed to verify that the information submitted to HC is accurate and to assess compliance with the applicable sections of the MMPR prior to licence approval. Having undergone a pre-licence inspection does not guarantee issuance of a licence, however, to MMJ's knowledge an MMPR license has been issued in every such case to date.
Key Value Catalyst
Notice of Pre-License Inspection is considered to be the key value catalyst for an MMPR applicant during the licensing process. This is due to the fact that every MMPR applicant that has received Notice of Pre-License Inspection has subsequently been issued an MMPR Licensed Producer license, making the Notice of Pre-Inspection the value catalyst as opposed to the actual granting of a MMPR license. This is supported by recent comparable situations where publicly traded MMPR applicants received Notice of Pre-License inspection and experienced significant appreciation in share price and market valuation in the near-term. Most notably, the recent announcement by Supreme Pharmaceuticals Inc. (CSE:SL) ("Supreme") made after market close on December 3, 2015. In Supreme's case, Notice of Pre-License Inspection and completion of the Pre-License Inspection (with no indication of the potential outcome of the Pre-License Inspection) appears to be the only relevant significant news announced during a period in which the company's stock price appreciated 143% from C$0.20 on December 3, 2015 to C$0.485 on January 12, 2016. Supreme has, as of today, not received an actual MMPR Licensed Producer license.
Strategic Importance of MMPR License
The Duncan MMPR license will provide MMJ with a secure and legal source of MC, creating options to generate near-term revenues from the sale of dried produce direct to registered MMPR patients in Canada, to other Licensed Producers or for export into other jurisdictions with medical cannabis regulations. Management will also explore other options to maximize revenue streams from UG.
The leading character and federal positioning of the Canadian MMPR will allow for knowledge and expertise transfer into new and emerging MC markets globally. This knowledge and expertise will be key to MMJ's Australian strategy in the near-term as well as all other international business endeavours going forward.
Longer-term, Duncan's MMPR license will provide a solid base for MMJ's evolution into a stable, diversified, integrated cannabis company.
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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