MMJ Group investees raise equity as cannabis continues to be a bullish sector

’s () publicly listed portfolio companies have taken advantage of continued positive news on the regulatory front for cannabis.

Companies in the cannabis sector are also taking on much less debt with the focus shifting to equity.

2.5x equity has been raised so far in the first 2 months of 2021 and 1/5th the debt compared with the same time frame in 2020, according to a report by Viridian Capital.

Harvest One Cannabis

MMJ investee Harvest One Cannabis Inc () () (FRA:2CN) recently raised C$5.75 million in new equity (unit deal priced at C$0.155 with a full warrant at C$0.19).

Combined with proceeds from their strategic review, this would solve much of Harvest One’s liquidity issues in the near to medium term.

Post-closing of this transaction MMJ will still own over 20% of the equity.

While MMJ is not planning to sell shares just as the restructuring effort is bearing fruit, any additional financing from this point on is likely to bring the company below 20% and unlock value in MMJ stock.

Weed MD

Weed MD () has raised C$17.5 million in new equity (unit deal priced at C$0.48 with half warrant at C$0.60).

Combined with the recent LiUNA debt, this solves short term funding issues for Weed MD and adds security to MMJ’s convertible debenture notes.

Embark Health

In MMJ’s private company portfolio, Embark Health has signed service agreements with British Columbia, Alberta, Saskatchewan, and Ontario with first purchase orders from both BC and Alberta already in place.

Initial feedback appears to be that product is being well received in British Columbia however a re-order would confirm that the market has indeed accepted the premium pricing the company is trying to establish.

Weed Me

Another MMJ private holding, Weed Me, recorded a record revenue month with several edible products (gummies, etc.) shipping in addition to the company’s flower stack.

Weed Me is now the second largest selling privately held cannabis producer in Canada.