The company believes that its share price materially undervalues the opportunities provided by its existing portfolio as the Canadian cannabis market recovers.
() is raising $5 million from shareholders to fund investments into new businesses in the global cannabis market.
The company’s share purchase plan which closes on March 17, 2020 provides eligible shareholders with the opportunity to purchase up to $30,000 worth of new shares at an issue price of 11 cents per share.
MMJ holds warrants (similar to ‘options’ in Australia) and contractual rights in a number of its existing listed and unlisted investments which provide opportunities for MMJ to make follow-on investments in businesses at a discount to current valuations.
Existing cannabis businesses where MMJ holds the right to make follow on investments include:
Sequoya (European medicinal cannabis and CBD oil extraction); Medipharm Labs (Canadian cannabis oil extraction); Weed Me (Canadian cannabis cultivation); Fire and Flower (Canadian cannabis retailer); Volero (Canadian cannabis vape manufacturer); Weed MD (Canadian cannabis cultivation and cannabis oil extraction); and Embark Health (Canadian cannabis and CBD oil extraction).MMJ believes that the companies within its portfolio are well placed to transition from business establishment to producing operational cashflow and receive a material valuation uplift during the latter part of 2020 as investors reward those cannabis businesses which generate sales and earnings growth.
Some recent investee company highlights include:
Embark Health (private)
Embark Health received its processing license from Health Canada for its Delta, BC facility.
This is a very positive step and brings Embark one step closer to full scale production at that facility.
Now Embark is working closely with Delta, BC authorities to receive building & occupancy approval for both phases of the first floor – after which the company can begin processing biomass.
All necessary extraction equipment for phase-one is being installed or on-route. Construction of the first phase at the Woodstock, ON facility also continues on schedule.
WeedMD
WeedMD’s merger with Starseed is beginning to bear fruit as the company is signing up various unions to its medicinal cannabis program.
During the month of February, WeedMD added the International Association of Heat and Frost Insulators and Allied Workers Local 95, the International Union of Painters and Allied Trades, and MyHSA as customers.