At 31 December 2019, MMJ owned a portfolio of cannabis companies valued at $61 million or 24.7 cents per share.
() owns a portfolio of listed and unlisted companies along the cannabis value-chain, which includes MediPharm Labs (TSE:LABS) (OTCQX:MEDIF) (FSE:MLZ).
MediPharm Labs was founded in 2015 and specialises in the production of purified, pharmaceutical quality cannabis oil and concentrates and advanced derivative products.
Recently, MediPharm disclosed that it maintains a strong balance sheet with an unaudited aggregate liquidity position of $67 million as at December 31, 2019.
This strong financial position supports MediPharm’s plans for domestic and international growth.
Cannabis 2.0 market is opening
MediPharm has also fulfilled further Cannabis 2.0 product shipments to Canadian provincial distributors in January 2020.
Cannabis 2.0 refers to Canadian legislation that made edibles containing cannabis and cannabis concentrates become legal in October 2019.
MediPharm’s CEO Pat McCutcheon said: “With our strong balance sheet, a healthy aggregate liquidity position, supply of pharmaceutical-quality products and the fact that the Cannabis 2.0 market is opening, we are well positioned to support our customers in Canada as they ramp up sales, as well as new potential customers in emerging international markets.
“In Canada, as the consumer market begins to achieve its full potential, we have remained disciplined in shaping our committed wholesale and service agreements based on our credit policies and sizeable upfront payments.”
MMJ holds warrants in MediPharm stock
MMJ owns around 0.94 million warrants exercisable at CAD$1.20 per share expiring October 2020 in MediPharm Labs.
Shares in MediPharm last traded at CAD$2.98 per share and the book value of MMJ’s investment in Medipharm Labs is A$1.9 million.
