Dosecann Divestment Completed
Perth, May 18, 2018 AEST (ABN Newswire) - MMJ PhytoTech Limited (
ASX:MMJ) ("MMJ") is pleased to announce that Cannabis Wheaton Income Corp (CVE:CBW) ("Cannabis Wheaton") has completed the acquisition ("Acquisition") of Dosecann Inc. ("Dosecann"). The Acquisition proposal was announced by MMJ on 5 April 2018.
Prior to the Acquisition, MMJ held:
- a CAD$2.5 million convertible note ("Convertible Note"); and
- warrants providing the ability for MMJ to acquire a further 1.25 million Dosecann common shares at CAD$1.20 per common share ("Warrants").
As consideration for the Acquisition:
- MMJ's Convertible Note was converted into 3.12 million common shares in Cannabis Wheaton; and
- MMJ's Warrants were converted into warrants in Cannabis Wheaton providing the ability for MMJ to acquire a further 1.56 million Cannabis Wheaton common shares at CAD$0.962 per share up until January 2020.
This consideration is currently worth a total of CAD$5.9 million based on Cannabis Wheaton's share price of CAD$1.59 (as at 17 May 2018) and represents an unrealised multiple on invested capital of 2.4x to MMJ's shareholders.
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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