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MMJ Group investee continues to roll out cannabis products in Canada

2 minutes reading time (395 words)

Embark Health products are being rolled out to online and retail locations throughout Ontario and Saskatchewan.

MMJ is set to complete its first non-cannabis investment this month.

's () (OTCMKTS:MMJF) Canadian investee Embark Health announced a number of updates on the progress in executing its business plan during April 2021.

These include the successful completion of:

First product shipment to the Ontario Cannabis Store (OCS) with The Hank Co. Bubble Hash. The OCS is the wholesaler and online retailer for recreational cannabis in Ontario; a product shipment of The Hazel Co. Hash Sticks to the Province of Ontario through the OCS, which is the wholesaler and online retailer for recreational cannabis in Ontario; first shipment of products to the province of Saskatchewan through our arrangement with Open Fields Distribution, Embark’s wholesale distribution partner in the province and one of the leading cannabis distributors in Saskatchewan. Embark’s products will be available online and at selected retail locations throughout the province; second shipment of products to the British Columbia Liquor Distribution Branch (BCLDB), with Distilled + Infused Liquid Beverage Shots; and product shipments to private retailers in the province of Manitoba.

First non-cannabis investment

MMJ is also making investments in sectors outside of cannabis, such as natural resources, pharmaceuticals and software services technology.

Following the completion of MMJ investee Bespoke Capital Acquisition Corp’s (BCAC) (NASDAQ:BSPE) (TSE:BC.U) acquisition of a US based wine business, Vintage Wines (VWE), in May 2021, MMJ will have completed the first non-cannabis investment following the diversification of its investment strategy approved by MMJ shareholders in late 2020.

Background

BCAC-VWE, one of the fastest growing U.S. wine producers with a leading direct-to-customer platform, announced that Wasatch Global Investors will increase its current investment in the combined BCAC-VWE by US$100 million, from US$28 million announced in February 2021 to a total of US$128 million.

The new investment will take the form of BCAC-VWE common shares at US$10 per share. The investment is subject to the closing of the BCAC-VWE business combination.

The Wasatch investment provides:

Significant incremental capital to support VWE’s acquisition strategy. VWE has successfully acquired 20 wineries in the past 10 years and believes that US wine industry conditions are increasingly positive for synergistic acquisitions; a cornerstone institutional investor in Wasatch; and attractive investment terms for existing VWE and BCAC shareholders with the investment being made in a U$10 per share common equity PIPE (private investment in public equity).

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