Half Yearly Report
Perth, Mar 1, 2018 AEST (ABN Newswire) - MMJ PhytoTech Limited (
ASX:MMJ) ("MMJ" or "the Company") is pleased to provide its review of operations for the half-year period ended 31 December 2017.
Investment Portfolio
During the half-year period, MMJ announced it would focus on operating as a global cannabis sector investment company.
As part of this focus, MMJ invested in the following companies:
- ASX-listed life sciences company eSense-Lab Ltd ("eSense" or "ESE") (ASX:ESE). MMJ acquired 2,500,000 ordinary shares in eSense at the price of A$0.20 per share. Subject to ESE shareholders approval, MMJ will receive 1 free option for every 2 shares issued at a $0.30 exercise price and expiry date of 3 years from date of issue;
- Canadian cannabis producer Weed Me Inc. ("Weed Me"). MMJ subscribed for C$2 million in secured convertible debentures, which are convertible into shares and warrants in Weed Me, based on pre-money valuation of C$9.2 million; and
- Canadian healthcare company Dosecann Inc. ("Dosecann"). Post-period end, MMJ subscribed for C$2.5 million in secured convertible debentures, which are convertible into shares and warrants in Dosecann, based on pre-money valuation of C$11.5 million.
In addition to the above investments, the Company maintained its two existing investments in Harvest One Cannabis Inc and PhytoTech Therapeutics Limited.
Harvest One Cannabis Inc. (CVE:HVST) (MMJ owns 53,333,333 shares)
Post-period end, Harvest One closed its "bought deal" offering of C$40,250,000 of units ("Units") of the Company, at a price of C$1.82 per Unit (the "Offering"), which included the exercise of the over-allotment option granted to the Underwriters (defined below) in full. Each Unit consisted of one common share ("Common Share") and one Common Share purchase warrant ("Warrant"). Each Warrant entitles the holder thereof to purchase one Common Share (a "Warrant Share") at an exercise price of C$2.30 per Warrant Share at any time up to 31 January 2020. In connection with the listing of the Warrants, Harvest One changed its trading symbol to "HVT".
Post-period end, Harvest One entered into an engagement letter with Mackie Research Capital Corporation (as the lead underwriter and sole bookrunner), on behalf of a syndicate of Underwriters, including Haywood Securities Inc., and Eight Capital, to purchase a short form prospectus offering to C$35,000,000 of Debenture Unit ("Units") of the Company, at a price of C$1.82 per Unit (the "Offering Price").
Harvest One intends to use the net proceeds of the Offering for the expansion of strategic indoor growing facilities, further development of its Satipharm Gelpell products, and for working capital and general corporate purposes. Accordingly, postperiod end, Harvest One wholly owned subsidiary, United Greeneries ("UG"), announced its expansion targets of 20,000kg dried cannabis flower capacity by YE 2018 and 70,000kg dried flower capacity by YE 2019 set to be fully funded by Harvest One's existing cash position of around C$80m.
PhytoTech Therapeutics Limited (PhytoTech) (MMJ 100%)
During the half-year, results from the Phase 1 Clinical Trial undertaken by PhytoTech were published. The article "Single-Dose Pharmacokinetics of Oral Cannabidiol Following Administration of PTL101: A New Formulation Based on Gelatin Matrix Pellets Technology" was published in Clinical Pharmacology in Drug Development ("CPDD").
To view the full report, please visit:
http://abnnewswire.net/lnk/Y4EJ7132
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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