Proactiveinvestors Australia MMJ Group Holdings Ltd https://www.proactiveinvestors.com.au Proactiveinvestors Australia MMJ Group Holdings Ltd RSS feed en Mon, 22 Jul 2019 01:29:29 +1000 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[Media files - MMJ Group focuses on strategic vision to be leading cannabis investment company ]]> https://www.proactiveinvestors.com.au/companies/stocktube/14114/mmj-group-focuses-on-strategic-vision-to-be-leading-cannabis-investment-company-14114.html Wed, 17 Jul 2019 15:34:00 +1000 https://www.proactiveinvestors.com.au/companies/stocktube/14114/mmj-group-focuses-on-strategic-vision-to-be-leading-cannabis-investment-company-14114.html <![CDATA[News - MMJ Group books 33% investment return for FY2019 ]]> https://www.proactiveinvestors.com.au/companies/news/223947/mmj-group-books-33-investment-return-for-fy2019-223947.html MMJ Group Holdings Ltd’s (ASX:MMJ) portfolio of investments ended the financial year with a total value of $95.5 million, representing a 33% investment return for the year.

The portfolio had three listed investments valued at $49.5 million, nine unlisted investments valued at $19.4 million, and $26.6 million in cash and other investment receivables.

WATCH: MMJ Group focuses on strategic vision to be leading cannabis investment company

The $99.5 million portfolio equates to a net tangible asset value per share before tax of 38.74 cents.

MMJ’s investments sit across most of the cannabis and hemp value chain with a focus on potential market leaders, consolidators, and takeover targets.

READ: MMJ Group reveals NTA nearly double that of market cap

BevCanna becomes public company in July 2019

As per the table above, MMJ’s publicly listed portfolio holdings at June 30, 2019 were Harvest One Inc (CVE:HVT), Medipharm Labs Inc (CVE:LABS) and Fire & Flower Holdings (CVE:FAF).

Notably, one of the unlisted investments, BevCanna went public on the Canadian Stock Exchange on 2 July under the ticker BEV.

A number of the portfolio’s remaining private companies are in the market seeking additional funding to continue accelerating their businesses.

READ: MMJ Group reveals share buyback plan and appoints Embark Ventures as investment manager

In early June 2019, MMJ revealed a share buy-back and updated the market on its dividend policy.

The company plans to buy-back up to 10 million shares on-market over the next 12 months as part of its active approach to capital management.

Given the discount the shares are trading to NTA, the board have determined that an on-market buyback of MMJ shares is a meaningful value accretive use of its funds.

Regarding the dividend policy, MMJ intends to distribute 20% of its annual profit after tax excluding unrealised gains and losses on investments from FY20 onwards.

The dividend would be payable within three months of each half year after the completion of the half year and annual financial statements.

It is MMJ’s intention that the dividend would benefit from available franking credits held by the company.

Goal is to trade at a premium to NAV

MMJ will hold a general meeting on this week on July 19 seeking approval for the appointment of Embark Ventures as the manager of its investments.

The MMJ board believes the company should centre its asset management resource in Canada to better manage the existing portfolio and provide access to new investment opportunities in North America.

A major goal that aims to be achieved in this transition is for the MMJ share price to trade at a premium to its net asset value represented by its NTA.

Embark Ventures believes it can achieve this goal through deal sourcing, leveraging off its related companies and sector experience, and by returning profits to shareholders.

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Tue, 16 Jul 2019 13:55:00 +1000 https://www.proactiveinvestors.com.au/companies/news/223947/mmj-group-books-33-investment-return-for-fy2019-223947.html
<![CDATA[News - MMJ Group leveraged to Hemple hemp and cannabinoid brand in US ]]> https://www.proactiveinvestors.com.au/companies/news/223867/mmj-group-leveraged-to-hemple-hemp-and-cannabinoid-brand-in-us-223867.html MMJ Group Holdings Ltd (ASX:MMJ) (OTCMKTS:MMJJF) is watching closely as its investee Hemple has launched its hemp and cannabinoid (CBD) brand in the US.

MMJ is a global cannabis investment company with a portfolio of listed and unlisted holdings, including a recent investment in Hemple, an Australian-based business.

The founders of Hemple, Cade Turland and Georgia Branch, are determined to carve out their piece of the world's biggest CBD market, estimated to be worth around US$22 billion by 2020.

Their Australian Cold Pressed Hemp Seed Oil and US grown and made Sigma N-Osmo CBD have made it into the hands of the Kardashians with both products featuring in social media feeds of Kim Kardashian, Kendall Jenner, Selma Blair and Shanina Shaik.

READ: MMJ Group reveals share buyback plan and appoints Embark Ventures as investment manager

Co-founder Georgia Branch, a Forbes 30 Under 30 list-maker, said: “There’s over 5,600 CBD tincture brands in the USA and we’re breaking away from the commoditised products which dominate the market.

“Our approach is to differentiate with a premium brand position that’s backed up by the innovative, effective products targeted towards the needs of our customer.

“Each of our products will have a specific functional benefit – from stress management to sleep.”

Turland continues: “We’re one of few companies in the US using nano-technology to improve the absorption rate of cannabinoids, which increases the absorption rate to over 90%.

“Ultimately this means better value for money for the customer.”

READ: MMJ Group Holdings makes progress in cannabis investment strategy

As Facebook and Instagram continue to disallow ingestible hemp foods and CBD advertising, the founders see the style of organic social media endorsement they have gained as key to reaching their millennial consumer – a fast growing segment of the hemp CBD market.

MMJ Group is making inroads as it seeks to capitalise on considerable interest in the emerging global cannabis industry through strategic investments.

As such, it is the only ASX-listed investment company offering Australian investors the opportunity to invest in unlisted and listed cannabis-related businesses locally and offshore.

In the last 12 months MMJ has converted from a cannabis operational company into a listed investment company.

In this short timeframe it has accumulated a pool of around 16,000 investors and shareholders funds of about A$90 million with most investments being offshore and predominantly in Canada.

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Mon, 15 Jul 2019 15:28:00 +1000 https://www.proactiveinvestors.com.au/companies/news/223867/mmj-group-leveraged-to-hemple-hemp-and-cannabinoid-brand-in-us-223867.html
<![CDATA[News - MMJ Group will put investment manager proposal to shareholder vote ]]> https://www.proactiveinvestors.com.au/companies/news/222275/mmj-group-will-put-investment-manager-proposal-to-shareholder-vote-222275.html MMJ Group Holdings Ltd (ASX:MMJ) shareholders will vote on a resolution at a general meeting next month for the company to enter into a management agreement with Embark Ventures.

The general meeting in Sydney on Friday, July 19, will involve two resolutions regarding the appointment and the possible issue of performance rights to Embark.

Shareholder approval is sought for the appointment of Embark as the company’s investment manager.

READ: MMJ Group reveals share buyback plan and appoints Embark Ventures as investment manager

Under a management agreement it is proposed that Embark will provide services including the identification, transacting and review of possible investment opportunities.

This role was previously performed by Jason Conroy, who resigned as CEO of the company on February 4, 2019.

MMJ Group has since been seeking a suitable replacement for Mr Conroy and believes that the appointment of Embark will meet this requirement.

Embark Ventures is part of the Embark Group which includes Embark Health Inc, a company in which MMJ holds an investment of $3.8 million.

Cannabis investment opportunity

MMJ Group is the only ASX-listed investment company offering Australian investors the opportunity to invest in unlisted and listed cannabis-related businesses locally and offshore.

In the last 12 months MMJ has converted from a cannabis operational company into a listed investment company.

In this short timeframe it has accumulated a pool of around 16,000 investors and shareholders funds of about A$90 million with most investments being offshore and predominantly in Canada.

READ: MMJ Group shares starting to close the gap on discount to NTA

The MMJ board believes that the company should centre its asset management resource in Canada to better manage the existing portfolio and access new investment opportunities as the board expects the majority of MMJ’s investment portfolio to be in North America.

It believes that the appointment of Embark is a cost-effective way to ramp up MMJ’s investment operations without adding material fixed costs.

If the appointment is approved, the MMJ board will monitor Embark’s role and will reconsider the appointment of a separate CEO as necessary.

READ: MMJ Group Holdings makes progress in cannabis investment strategy

MMJ chairman Peter Wall said: “Confirmation of the appointment of Embark Ventures is an important step in addressing the 39% discount to the fair value of MMJ’s net asset value per share.

“The board looks forward to MMJ shareholders confirming the appointment of Embark Ventures in order to provide investors with certainty over MMJ’s operating structure and allow MMJ to ramp up its investment operations.”

The board took into consideration that, with the appointment of Embark, MMJ receives access to a team of people based in Canada, MMJ’s key investment market.

One of the principals of Embark is Michael Curtis, a non-executive director of MMJ who holds about 20% of Embark Ventures.

Two resolutions

The first resolution to be put to shareholders is: “That, for all purposes, approval is given for the company to engage Embark Ventures under the terms of the Management Agreement on the terms and conditions set out in the Explanatory Statement.”

The second is: “That, for the purposes of ASX Listing Rule 10.11 and for all other purposes, approval is given for the company to issue 12,000,000 Performance Rights to Embark Ventures Inc (or its nominee) on the terms and conditions set out in the Explanatory Statement.”

MMJ’s general meeting will be held at 2pm on July 19 at the office of the Automic Group, Level 5, 126 Phillip Street, Sydney.

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Tue, 18 Jun 2019 09:43:00 +1000 https://www.proactiveinvestors.com.au/companies/news/222275/mmj-group-will-put-investment-manager-proposal-to-shareholder-vote-222275.html
<![CDATA[News - MMJ Group shares starting to close the gap on discount to NTA ]]> https://www.proactiveinvestors.com.au/companies/news/222112/mmj-group-shares-starting-to-close-the-gap-on-discount-to-nta-222112.html MMJ Group Holdings Ltd (ASX:MMJ) has calculated its net tangible assets (NTA) per share as 38.5 cents post-tax as at 31 May 2019.

The NTA of a company is used to as a valuation metric and with MMJ shares trading at 24.5 cents, the share price represents a 63.6% discount to MMJ’s NTA.

MMJ’s publicly listed portfolio holdings are Harvest One Inc (CVE:HVT), Medipharm Labs Inc (CVE:LABS) and Fire & Flower Holdings (CVE:FAF) – and it has nine unlisted investments in the portfolio.

At the beginning of the year, MMJ’s post-tax NTA was calculated at 22.35 cents illustrating the growth in NTA to date in 2019.

READ: MMJ Group reveals share buyback plan and appoints Embark Ventures as investment manager

Last week, MMJ revealed a share buy-back and updated the market on its dividend policy.

The company plans to buy-back up to 10 million shares on-market over the next 12 months as part of its active approach to capital management.

Given the discount the shares are trading to NTA, the board have determined that an on-market buyback of MMJ shares is a meaningful value accretive use of its funds.

Regarding the dividend policy, MMJ intends to distribute 20% of its annual profit after tax excluding unrealised gains and losses on investments from FY20 onwards.

The dividend would be payable within three months of each half year after the completion of the half year and annual financial statements.

It is MMJ’s intention that the dividend would benefit from available franking credits held by the company.

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Fri, 14 Jun 2019 11:24:00 +1000 https://www.proactiveinvestors.com.au/companies/news/222112/mmj-group-shares-starting-to-close-the-gap-on-discount-to-nta-222112.html
<![CDATA[News - MMJ Group reveals share buyback plan and appoints Embark Ventures as investment manager ]]> https://www.proactiveinvestors.com.au/companies/news/221688/mmj-group-reveals-share-buyback-plan-and-appoints-embark-ventures-as-investment-manager-221688.html MMJ Group Holdings Ltd (ASX:MMJ) is planning an on-market buy-back of up to 10 million MMJ ordinary shares over the next 12 months as part of its active approach to capital management.

Rationale

In managing its investment portfolio and asset allocation, the company is continually monitoring its investments and new investment opportunities in the Cannabis sector.

Understanding the portfolio and noting the discount that the company’s shares are trading to the net asset value per share of its investment portfolio, MMJ has determined that an on-market buyback of its shares is a value accretive use of its funds.

The buy-back is from existing cash reserves and is expected to enhance shareholder returns.

Investment management agreement with Embark Ventures Inc.

On April 15 2019 MMJ announced the proposed appointment of Embark Ventures (EBV) as manager of MMJ’s investments.

MMJ has now executed an investment management agreement with EBV.

Background

EBV is part of the Embark Group which includes Embark Health Inc, a company in which MMJ holds an investment of $3.8 million.

One of the principals of Embark is Michael Curtis, who is a non-executive director of MMJ and will hold about 20% of EBV and holds 13.2% of Embark Health issued capital respectively.

The MMJ board believes that the company should centre its asset management resource in Canada to better manage the existing portfolio and access new investment opportunities as the board expects the majority of MMJ’s investment portfolio to be located in North America.

The appointment of Embark is a cost-effective way to ramp up MMJ’s investment operations without adding material fixed costs.

READ: MMJ Group Holdings makes progress in cannabis investment strategy

The investment management agreement with EBV will become effective following MMJ shareholders approval.

The MMJ board has formed the view that the appointment of a third party manager was a preferred option to appointing a chief executive officer (CEO).

The board took into consideration that, with the appointment of EBV, MMJ receives access to a team of persons based in Canada, MMJ’s key investment market.

Following its appointment, the MMJ Board will monitor EBV’s role and will reconsider the appointment of a separate CEO as necessary.

READ: MMJ Group invests in Canadian manufacturer of vape pens and cartridges

MMJ chairman Peter Wall said: “The board considers that the implementation of the buy-back and the dividend policy together with confirmation of the appointment of Embark Ventures, are important steps in addressing the 39% discount to the fair value of MMJ’s net asset value per share.

“The board looks forward to MMJ shareholders confirming the appointment of Embark Ventures in order to provide investors with certainty over MMJ’s operating structure and allow MMJ to ramp up its investment operations.”

Dividend policy

MMJ has decided to distribute 20% of its annual profit after tax after excluding unrealised gains and losses on investments in respect of financial years commencing after June 30 2019.

The dividend would be payable within three months of each half year after the completion of the half year and annual financial statements. The dividend would benefit from available franking credits held by the company.

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Fri, 07 Jun 2019 11:37:00 +1000 https://www.proactiveinvestors.com.au/companies/news/221688/mmj-group-reveals-share-buyback-plan-and-appoints-embark-ventures-as-investment-manager-221688.html
<![CDATA[News - MMJ Group Holdings makes progress in cannabis investment strategy ]]> https://www.proactiveinvestors.com.au/companies/news/221526/mmj-group-holdings-makes-progress-in-cannabis-investment-strategy-221526.html MMJ Group Holdings Ltd (ASX:MMJ) (OTCMKTS:MMJJF) is making inroads as it seeks to capitalise on considerable interest in the emerging global cannabis industry through strategic investments.

As such, it is the only ASX-listed investment company offering Australian investors the opportunity to invest in unlisted and listed cannabis-related businesses locally and offshore.

In the last 12 months MMJ has converted from a cannabis operational company into a listed investment company.

READ: MMJ Group focuses on shareholder returns with venture capital approach to global cannabis sector

In this short timeframe it has accumulated a pool of around 16,000 investors and shareholders funds of about A$90 million with most investments being offshore and predominantly in Canada.

Chief financial officer Jim Hallam said the company was looking for well-managed companies that needed capital and which had a business plan to be rolled out in the next 12-24 months.

The model seeks early stage companies looking to IPO and MMJ like to co-invest with other investors.

READ: MMJ Group invests in Canadian manufacturer of vape pens and cartridges

The company is also well positioned to benefit when the Canadian market opens up in October 2019 to CBD-infused beverage and food as well as vape pens.

MMJ has sourced 11 investments and is confident of gaining further exposure by way of a proposed arrangement with Embark Ventures, a team of investors and operators of cannabis businesses in Canada.

This partnership is expected to provide MMJ with greater understanding of the industry in North America and enable the company to extract greater value from its investments.

READ: MMJ Group reveals NTA nearly double that of market cap

The progress being made is not yet reflected by MMJ’s share price.

Unaudited net tangible assets (NTA) have been calculated at 40.01 cents post-tax as at April 30, 2019, and with shares trading on the ASX at 23.5 cents, the share price represents a 70% discount.

Working hard to bridge gap

Hallam said the board was working hard to bridge this gap.

He said the proposed tie-up with Embark Ventures would increase the footprint in Canada and help position the company for the longer term in North America, particularly if the US was to legalise cannabis at a federal level.

MediPharm Labs investment success

Hallam pointed out that cannabis oil extraction business MediPharm Labs was an example of the company’s investment success.

MMJ invested $5 million in the private business in 2018 as it saw that value would come after listing -Medipharm Labs Corp (CVE:LABS).

During early 2019 the investment went from $1.20 to $6 and in that period, MMJ decided to divest most of its holding.

The CFO said the better prospects were proven cannabis growers, extraction businesses and businesses that were intending to sell branded cannabis products recognised by consumers.

Many opportunities

He added that the company was already demonstrating that there were opportunities to offer investors private equity style returns in a market still at the early stages of delivering investment returns.

Upcoming developments and further industry growth, he said, would ensure MMJ was well-positioned to deliver better returns to investors in the next 12 months and beyond.

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Wed, 05 Jun 2019 16:39:00 +1000 https://www.proactiveinvestors.com.au/companies/news/221526/mmj-group-holdings-makes-progress-in-cannabis-investment-strategy-221526.html
<![CDATA[News - MMJ Group focuses on shareholder returns with venture capital approach to global cannabis sector ]]> https://www.proactiveinvestors.com.au/companies/news/220641/mmj-group-focuses-on-shareholder-returns-with-venture-capital-approach-to-global-cannabis-sector-220641.html MMJ Group Holdings Ltd (ASX:MMJ) has developed a portfolio of minority investments in the global cannabis industry, posting strong net returns of 44% for the financial year to April 30, as well as 32% for the quarter and 7% for the month.

Aiming to capitalise on the emerging industry through investments in cannabis-related sectors, the company has made 15 primary acquisitions and 8 sales of investments to date.

A strong cash position of $26 million will continue to provide capital for MMJ to exclusively invest in the burgeoning industry.

The company has also taken advantage of recent improvements in Canadian-listed cannabis markets to further boost its cash reserves, cancelling an equity raising announced in February.

READ: MMJ Group invests in Canadian manufacturer of vape pens and cartridges

Currently MMJ’s portfolio consists of 11 investments with a book value of $71.5 million, 77% of which are publicly listed and 95% based in Canada.

The portfolio includes several companies which will benefit from the pending Canadian legalisation of cannabis-based food and beverages in October 2019.

MMJ is also the largest shareholder in Harvest One Cannabis Inc (CVE:HVT), an early-entry global cannabis company focused on both medical and recreational products.

MMJ's investment portfolio 

 

The company takes a venture capital approach to managing its portfolio, targeting investments of up to $5 million in cannabis sector leaders within supportive jurisdictions like Canada and Australia.

Businesses from across a broad spectrum of sectors are being targeted, including healthcare, technology, infrastructure, logistics, processing, cultivation, equipment and retail.

READ: MMJ Group targets newsflow with portfolio-market capitalisation appreciation plan

Last month MMJ proposed appointing Embark Ventures as manager of its cannabis investments, providing a cost-effective way to accelerate MMJ’s investment operations in the medium term without adding material fixed costs.

Embark Ventures’ parent Embark Group also includes Embark Health Inc, in which MMJ holds an investment worth $3.8 million.

The appointment is part of MMJ’s strategy to secure a meaningful investment presence in its key market of North America.

READ: MMJ Group completes sale of unit to Harvest One Cannabis for C$8 million

An example of MMJ’s value-focused strategy is its investment in and exit from MediPharm Labs, a company in which MMJ saw potential as a leader in cannabis oils extraction.

After investing CAD$5 million in shares and warrants last year and seeing strong share price growth, MMJ sold its holding to realise a return of six times the capital invested.

MMJ's share price is trading at a discount to net present value

 

Other notable investments include MMJ’s acquisition of two cannabis businesses in 2015 and its investment in Dosecann, a Canadian cannabis-focused healthcare company.

The 2015 acquisitions of United Greeneries Holdings Ltd and Satipharm AG were both sold to Harvest One (HVT) in April 2017 through a reverse takeover.

MMJ’s holding in HVT was reduced from 60% to 26%, through a series of share issues, exercise of convertible debt and consideration paid.

The reverse takeover generated a pre-tax return for MMJ of 33% per year, representing 2.5 times capital invested.

Returns of 2.2 times capital invested were generated from MMJ’s January 2018 investment in Dosecann after Cannabis Wheaton Income Corp (TSX-V:CBW) acquired 100% of Dosecann four months later.

MMJ accepted the takeover consideration in the form of Cannabis Wheaton shares and warrants, which was entirely divested then reinvested in the private market.  

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Mon, 20 May 2019 23:06:00 +1000 https://www.proactiveinvestors.com.au/companies/news/220641/mmj-group-focuses-on-shareholder-returns-with-venture-capital-approach-to-global-cannabis-sector-220641.html
<![CDATA[News - MMJ Group invests in Canadian manufacturer of vape pens and cartridges ]]> https://www.proactiveinvestors.com.au/companies/news/220376/mmj-group-invests-in-canadian-manufacturer-of-vape-pens-and-cartridges-220376.html MMJ Group Holdings Ltd (ASX:MMJ) has invested C$2.5 million for a 7.3% shareholding in Volero Brands Inc, a private company based in Canada which owns and manufactures the Flyte brand of vape pens and cartridges.

Volero is building a state-of-the-art extraction and production facility that will produce vaporisers, concentrates and topical solutions.

The facility is expected to be completed in Q3 2019 and will be designed to generate a revenue of more than C$100 million per annum.

MMJ’s C$2.5 million investment is part of Volero’s C$5 million seed funding round.

The investment consists of 5 million shares and 2.5 million warrants exercisable at C$0.65 within three years.

Volero is aiming to capitalise on the pending legalisation by the Canadian Federal Government of concentrates and vaporisers in October 2019.

In this event, Flyte could become a major player in that market having already established a brand and an attractive price point.

MMJ chairman Peter Wall said: “Volero provides the opportunity for MMJ to invest in the potentially lucrative segment of concentrates and vaporisers which are expected to be legalised in October 2019.

“The investment again demonstrates MMJ’s capacity to secure investments in private cannabis businesses which are on a short path to public listing.”

Bonus opportunity: USA

MMJ was introduced to Volero by Embark Ventures Inc which is MMJ’s proposed manager of its investment portfolio.

Through Embark Ventures, MMJ’s was able to secure significantly superior terms to those originally proposed.

Wall added: “We are delighted that we could work together with Embark Ventures to find a structure that works for both groups on the first investment originated for MMJ”.

Following settlement of the Volero investment which is expected before May 31 2019, MMJ will have cash reserves of $26 million.

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Thu, 16 May 2019 14:33:00 +1000 https://www.proactiveinvestors.com.au/companies/news/220376/mmj-group-invests-in-canadian-manufacturer-of-vape-pens-and-cartridges-220376.html
<![CDATA[News - MMJ Group reveals NTA nearly double that of market cap ]]> https://www.proactiveinvestors.com.au/companies/news/220094/mmj-group-reveals-nta-nearly-double-that-of-market-cap-220094.html MMJ Group Holdings Ltd (ASX:MMJ) has calculated its unaudited net tangible assets (NTA) as 40.01 cents post-tax as at April 30, 2019.

The NTA of a company is used as a valuation metric and with MMJ shares trading on the ASX at 23.5 cents, the share price represents a 70% discount to MMJ’s NTA.

At the beginning of the year, MMJ’s post-tax NTA was calculated at 22.35 cents illustrating the growth in NTA to date in 2019.

READ: MMJ Group Holdings targets news flow with portfolio-market capitalisation appreciation plan

Last week, the company confirmed it is working to reduce the gap between the share price and its net asset value.

MMJ went onto say that it believes it offers a compelling investment opportunity in the cannabis sector.

The company also noted it is well-funded with $25 million in cash.

MMJ’s investment portfolio at 7 May 2019

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Mon, 13 May 2019 13:38:00 +1000 https://www.proactiveinvestors.com.au/companies/news/220094/mmj-group-reveals-nta-nearly-double-that-of-market-cap-220094.html
<![CDATA[News - MMJ Group Holdings targets newsflow with portfolio-market capitalisation appreciation plan ]]> https://www.proactiveinvestors.com.au/companies/news/219922/mmj-group-holdings-targets-newsflow-with-portfolio-market-capitalisation-appreciation-plan-219922.html MMJ Group Holdings Ltd (ASX:MMJ) (OTCMKTS:MMJJF) securities have gained 5.25% on highlighting it is carrying $25 million cash and plans to close the gap between its asset value and market capitalisation with a performance driven-approach investors hope will help build portfolio and shareholder value.

The cannabis investment company has started a campaign to present its investment case to shareholders, with chief financial officer Jim Hallam detailing the company’s investments in a finance interview earlier this week.

MMJ shared a summary of Hallam’s comments with the market yesterday in an investment update after the CFO profiled both the company’s investments and upcoming investment management approach in the interview on Monday.

Share price trades at a discount to net asset value

MMJ’s cash holdings of about $25 million compare favourably to its market capitalisation which was 4.55% or about $2 million higher overnight at $52.93 million.

The group’s net asset value is about $92 million, putting last night’s market cap at about 57% of net asset value.

MMJ share price is now a 43% discount to its NAV.

The company reported yesterday its listed investments and cash reserves were more than 80% of its portfolio value.

MMJ sources hard-to-access investments and adds portfolio value

MMJ’s approach to portfolio management is to source private investments which are not “practically” available to retail and institutional investors based in one of its listed markets, Australia.

The group’s target geographic markets for investments extend outside Australia to progressive cannabis market Canada.

An example of the company’s approach is its acquisition then sell-down of a stake in Medipharm Labs Corp (CVE:LAB) (FRA:MLZ) (OTCMKTS:MEDIF) to realise about a six times return on initial investment.

The investment return contributed to MMJ’s current attractive cash levels.

Investments add value over time

Investment group MMJ also choses to reinvest capital in its investments to continue to benefit from their uplifts in value.

Among the group’s current holdings are Harvest One Cannabis Inc. (HVT), which makes up about 50% of its portfolio.

Harvest One had bought MMJ investment PhytoTech Therapeutics Ltd for C$8 million in cash and stock in a transaction completed in November 2018.

MMJ investee Harvest One is rolling out a business plan that is adding to shareholder returns, pushing up the Canadian dollar share price by 50 cents, or 135%, to 87 cents since the start of 2019.

Sydney-based MMJ’s pre-tax return on its HVT investment is sitting at 33% a year.

MMJ has set a performance-driven direction

Minority investments holder MMJ has proposed to appoint Embark Ventures (EBV) on a primarily performance-based contract to act as its portfolio.

Embark Ventures is linked to a Toronto-based MMJ non-executive director, former investment banker Michael Curtis, who did not participate in discussions or negotiations by MMJ directors about the appointment of a manager.

Finance professional Curtis is chief operating officer and director of an Embark company and was a corporate vice-president of the MMJ investee company Dosecann which was successfully divested last year.

MMJ reported yesterday it expects no material increase to operating costs from its Embark arrangement expected to be formalised in the next fortnight.

The group is operating without a chief executive officer and expects the portfolio relationship will give it access to a team of people able to focus on portfolio management.

Performance targets for the relationship have been outlined that specific Embark Ventures must achieve outcomes to improve both MMJ’s share price and NAV.

If it doesn’t, the venture will not be rewarded with performance fees.

Investors expect the relationship will better improve newsflow, with the CFO Hallam also set to front investors at an upcoming finance event later this month.

MMJ wrote: “EBV will provide MMJ with much greater asset management resources located in Canada without the need to directly employ more staff and overhead.

“Embark Ventures is already actively managing our existing portfolio to ensure that MMJ gets the best possible returns.”

A shareholder briefing will be held in Australia next month as an Embark Ventures representative visits the country to present to investors and the wider investment community.

MMJ securities closed up 0.1 cent, or 4.55%, to 23 cents on the ASX yesterday.

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Wed, 08 May 2019 19:00:00 +1000 https://www.proactiveinvestors.com.au/companies/news/219922/mmj-group-holdings-targets-newsflow-with-portfolio-market-capitalisation-appreciation-plan-219922.html
<![CDATA[News - MMJ Phytotech CEO will outline medicinal cannabis strategy at CEO Session ]]> https://www.proactiveinvestors.com.au/companies/news/206949/mmj-phytotech-ceo-will-outline-medicinal-cannabis-strategy-at-ceo-session-206949.html MMJ PhytoTech Ltd (ASX:MMJ) has an active strategy in the medicinal cannabis sector which chief executive officer Jason Conroy will outline at the Proactive CEO Sessions in Sydney on Monday, October 22.

The company recently confirmed the disposal of subsidiary PhytoTech Therapeutics Ltd (PTL) to Harvest One Cannabis Inc (TSX-V:HVT), which led to suspension from the ASX.

READ: MMJ PhytoTech applies for ASX re-quotation, Canadian cannabis investment enters distribution agreement

A re-quotation application has been made, which also incorporates a change of name to MMJ Group Holdings Limited.

This week the company has confirmed that its investment MediPharm Labs Inc (TSX-V:LABS) entered into a cannabis concentrate program agreement with Emerald Health Therapeutics Inc (TSX-V:EMH).

MMJ’s investment in MediPharm amounts to C$5 million, comprising 5.88 million shares at 85 Canadian cents per share and 2.94 million warrants exercisable at C$1.20 a share by October 2020.

This agreement enables Emerald to provide pharmaceutical-grade cannabis concentrate products produced by MediPharm to its large base of registered patients as well as premium concentrates for adult-use recreational consumers.

MediPharm is focused on downstream secondary extraction methodology, distillation and cannabinoid isolation and purification.

The company operates of one the largest cannabis concentrate manufacturing facilities in Canada and is built current good manufacturing practices and ISO standards.

Divestment notice lodged

Today MMJ announced that it has lodged a notice with the TSX Venture Exchange stating its intention to divest up to 5 million of its 53.333 million shares held in Harvest One.

The notice is a Canadian regulatory requirement as MMJ’s shareholding of approximately 30% in Harvest One is more than the 20% ownership threshold.

On completion of the sale of PTL, MMJ’s shareholding in Harvest One will increase by the equivalent of C$6.86 million divided by the 10-day volume weighted average price of Harvest One shares preceding settlement of that sale.

Conroy said, “After being fully-invested since the end of July, and with a significant shareholding in Harvest One that will increase on completion of the PTL sale, it is prudent to be ready and able to trim our ownership stake so we can participate in other cannabis sector investment opportunities as they arise.”

Register for the CEO Session today to find out more.

Sydney details, Monday, October 22, 2018

Also featuring will be Yandal Resources Limited (ASX:YRL), High Peak Royalties Ltd (ASX:HPR), Minotaur Exploration Ltd (ASX:MEP) and The Hydroponics Company Ltd (ASX:THC).

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Fri, 12 Oct 2018 15:45:00 +1100 https://www.proactiveinvestors.com.au/companies/news/206949/mmj-phytotech-ceo-will-outline-medicinal-cannabis-strategy-at-ceo-session-206949.html
<![CDATA[News - MMJ PhytoTech applies for ASX re-quotation, Canadian cannabis investment enters distribution agreement ]]> https://www.proactiveinvestors.com.au/companies/news/206849/mmj-phytotech-applies-for-asx-re-quotation-canadian-cannabis-investment-enters-distribution-agreement-206849.html MMJ PhytoTech Ltd (ASX:MMJ) has confirmed its investment MediPharm Labs Inc (TSX-V:LABS) has entered into a cannabis concentrate program agreement with Emerald Health Therapeutics Inc (TSX-V:EMH).

MMJ’s investment in MediPharm amounts to CAD$5 million, comprising 5.88 million shares at 85 Canadian cents per share and 2.94 million warrants exercisable at CAD$1.20 a share by October 2020.

 

The company has also confirmed it has made the relevant re-quotation application to the ASX after its shareholders confirmed the disposal of MMJ subsidiary PhytoTech Therapeutics Ltd on October 5 and MMJ went into suspension.

Along with approving the disposal of PhytoTech Therapeutics to Harvest One Cannabis Inc (TSX-V:HVT), MMJ shareholders voted to change the company name to MMJ Group Holdings Limited.

READ: MMJ PhytoTech invests into major Canadian medical cannabis company

The MediPharm agreement enables Emerald to provide pharmaceutical-grade cannabis concentrate products produced by MediPharm to its large base of registered patients as well as premium concentrates for adult-use recreational consumers.

MediPharm is focused on downstream secondary extraction methodology, distillation and cannabinoid isolation and purification.

The company operates of one the largest cannabis concentrate manufacturing facilities in Canada and is built current good manufacturing practices and ISO standards.

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Thu, 11 Oct 2018 00:38:00 +1100 https://www.proactiveinvestors.com.au/companies/news/206849/mmj-phytotech-applies-for-asx-re-quotation-canadian-cannabis-investment-enters-distribution-agreement-206849.html
<![CDATA[Media files - MMJ PhytoTech positioned to become 'the Berkshire Hathaway of cannabis’ ]]> https://www.proactiveinvestors.com.au/companies/stocktube/10709/mmj-phytotech-positioned-to-become-the-berkshire-hathaway-of-cannabis-10709.html Thu, 04 Oct 2018 07:14:00 +1000 https://www.proactiveinvestors.com.au/companies/stocktube/10709/mmj-phytotech-positioned-to-become-the-berkshire-hathaway-of-cannabis-10709.html <![CDATA[News - MMJ Phytotech invests into major Canadian medical cannabis company ]]> https://www.proactiveinvestors.com.au/companies/news/199920/mmj-phytotech-invests-into-major-canadian-medical-cannabis-company-199920.html MMJ PhytoTech Ltd (ASX:MMJ) has invested C$5 million for a 6.9% basic shareholding in MediPharm Labs Inc, which owns Canada’s largest medical cannabis oil production facility.

MMJ is a global cannabis investment company with a diversified portfolio of cannabis sector investments.

READ: MMJ PhytoTech invests into global cannabis lifestyle brand

It has made a number of recent investments with Ontario-based MediPharm Labs representing the ninth.

As well as the production facility supporting 100,000 kilograms of annual dry cannabis processing, MediPharm owns a majority share in MediPharm Labs Australia.

Australian operation

This operation, which is based in Wonthaggi, Victoria, has lodged a cannabis manufacturing licence application.

MMJ’s CEO Jason Conroy said: “As Canada’s largest medical cannabis oil production facility and with a strategic presence in Australia, MediPharm is strongly positioned to capitalise on growth opportunities in Canada and overseas.”

ACMPR licensed producer

MediPharm is an Access to Cannabis for Medical Purposes Regulations (ACMPR) licensed producer for the production of cannabis oil and expects to receive a sales licence later this year.

It uses innovative extraction technologies that create products designed for specific patient solutions and has manufacturing and distribution partnerships with proven patented formulators.

MediPharm is strongly positioned to capitalise on Canadian medical cannabis oil market sales growth, both for domestic patients and for export.

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Mon, 02 Jul 2018 16:17:00 +1000 https://www.proactiveinvestors.com.au/companies/news/199920/mmj-phytotech-invests-into-major-canadian-medical-cannabis-company-199920.html
<![CDATA[News - MMJ PhytoTech invests into global cannabis lifestyle brand ]]> https://www.proactiveinvestors.com.au/companies/news/198065/mmj-phytotech-invests-into-global-cannabis-lifestyle-brand-198065.html MMJ PhytoTech Ltd (ASX:MMJ) has invested C$0.7 million for a 12.7% shareholding in Bien Ventures Ltd, a private Canadian intellectual property, branding and licensing company.

MMJ is a global cannabis investment company with a diversified portfolio of cannabis sector investments.

Bien is MMJ’s seventh investment.

Powders that can be added to food or drink

Bien is focused on exploiting the intellectual property (IP) for its formulation and brand of soluble, odourless and flavourless micro-dosed CBD and THC powders.

THC and CBD are abbreviations for different compounds that are found in cannabis.

Bien's powders can be added to any beverage or food by a consumer.

Initially targeting California market

Bien is preparing to license its IP and brand to manufacturers and distributors.

Final testing of Bien’s formulation is underway.

On completion of the product testing, the initial market for the launch of the Bien-branded products will be California.

Bien aims to expand by building its own manufacturing, distribution and marketing business, subject to obtaining appropriate licenses, in Canada from mid-2019 once cannabis edibles are legalised.

Follows recent investment in Martha Jane Medical

The Bien investment follow’s yesterday’s investment of A$0.6 million for a 12.6% shareholding in Martha Jane Medical Limited.

Martha Jane Medical holds an Australian medical cannabis licence for research purposes and
is progressing applications for other classes of Australian cannabis licences.

It aims to design and construct a world-class growing, extract and manufacturing facility and export high-value cannabis-based products and medicines globally.

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Fri, 01 Jun 2018 15:19:00 +1000 https://www.proactiveinvestors.com.au/companies/news/198065/mmj-phytotech-invests-into-global-cannabis-lifestyle-brand-198065.html
<![CDATA[News - MMJ PhytoTech Ltd sees new opportunities from simpler medicinal cannabis regulation ]]> https://www.proactiveinvestors.com.au/companies/news/192490/mmj-phytotech-ltd-sees-new-opportunities-from-simpler-medicinal-cannabis-regulation-192490.html MMJ PhytoTech Limited (ASX:MMJ) is expected to benefit from the New South Wales government’s new plan to simplify access to medicinal cannabis for doctors and patients in the state.

Instead of both the Commonwealth and NSW Health overseeing the approvals, the state will now rely on a single clinical assessment by the Therapeutic Goods Administration (TGA).

This key change will eliminate duplication from the current approval process and substantially shorten the time between application and approval for doctors in NSW to prescribe medicinal cannabis to their patients.

Significantly, this is an important proposed change for MMJ’s largest investment, Harvest One Cannabis Inc (CVE:HVT), which currently supplies CBD (cannabidiol) capsules to approved patients in Australia.

READ: MMJ PhytoTech eyes new opportunities in the Australian medicinal cannabis sector

Harvest One is the core investment in MMJ’s portfolio, holding over 53 million shares representing a significant minority shareholding of circa 34%.

Following its recent capital raisings, Harvest One has a cash balance of around C$80 million to fund the company’s growth initiatives with a focus on expanding its cannabis production facilities.

Total legalised market opportunity exceeding $20 billion

Canada is expected to be the largest federal jurisdiction in the world to legalise cannabis consumption.

The total legalised market opportunity in Canada is estimated by Deloitte to exceed $20 billion.

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Fri, 02 Mar 2018 16:22:00 +1100 https://www.proactiveinvestors.com.au/companies/news/192490/mmj-phytotech-ltd-sees-new-opportunities-from-simpler-medicinal-cannabis-regulation-192490.html
<![CDATA[News - MMJ PhytoTech eyes new opportunities in the Australian medicinal cannabis sector ]]> https://www.proactiveinvestors.com.au/companies/news/189560/mmj-phytotech-eyes-new-opportunities-in-the-australian-medicinal-cannabis-sector-189560.html MMJ PhytoTech Ltd (ASX:MMJ) is actively assessing a number of Australian-based strategic investment opportunities in the medicinal cannabis sector, aimed at leveraging the company’s cannabis expertise.

The company’s shares are trading circa 9% higher intra-day at $0.58 after the health minister Greg Hunt outlined the government’s plan to allow the export of medicinal cannabis products from Australia.

MMJ through its 59%-ownership in Harvest One Cannabis Inc (CVE:HVST), has already commenced the supply of its Satipharm CBD (cannabidiol) capsules to approved patients in Australia.

Currently selling cannabidiol capsules globally

Satipharm CBD capsules are manufactured by Satipharm AG (wholly-owned by Harvest One) and are currently sold throughout key regulated cannabis markets globally.

Importantly, MMJ is now assessing a number of Australian-based investment opportunities in the medicinal cannabis sector, aimed at leveraging its global distribution networks and cannabis cultivation expertise.

The company is expected to provide further details on these potential strategic investment opportunities in the near-term.

READ: MMJ PhytoTech’s subsidiary achieves steady progress in the European cannabis market

Satipharm’s distribution network has rapidly expanded in 2017 with a focus on the largest European consumer markets: Germany, Denmark, UK, Ireland, Netherlands, Spain and Austria.

In these countries, Satipharm’s CBD Gelpell capsules are now available in several online shops, on Amazon, mail order pharmacies and in conventional brick and mortar pharmacies.

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Fri, 05 Jan 2018 12:41:00 +1100 https://www.proactiveinvestors.com.au/companies/news/189560/mmj-phytotech-eyes-new-opportunities-in-the-australian-medicinal-cannabis-sector-189560.html
<![CDATA[News - MMJ PhytoTech calls for trading halt ]]> https://www.proactiveinvestors.com.au/companies/news/188542/mmj-phytotech-calls-for-trading-halt-188542.html MMJ PhytoTech Ltd's (ASX:MMJ) shares have been placed in pre-open this morning following the ASX granting the company a trading halt pending details of a material investment.

MMJ is focused on becoming a large-scale cannabis producer, targeting direct supply to the growing Canadian medical and recreational markets.

The company controls operations across the entire medicinal cannabis value chain through its ~59% interest in Harvest One Cannabis Inc (TSXV:HVST).

The halt will remain in place until the opening of trade on Wednesday 13th December 2017, or earlier if an announcement is made to the market.

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Mon, 11 Dec 2017 10:26:00 +1100 https://www.proactiveinvestors.com.au/companies/news/188542/mmj-phytotech-calls-for-trading-halt-188542.html
<![CDATA[News - MMJ PhytoTech enters collaboration ]]> https://www.proactiveinvestors.com.au/companies/news/187045/mmj-phytotech-enters-collaboration-187045.html MMJ PhytoTech Ltd (ASX:MMJ) is preparing to outline an investment and collaboration arrangement, with the ASX granting the company a trading halt to finalise.

MMJ owns 59% of Harvest One Cannabis Inc. (TSX-V:HVST).

The halt will remain in place until the opening of trade on Tuesday 14th November 2017, or earlier if an announcement is made to the market.

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Fri, 10 Nov 2017 10:23:00 +1100 https://www.proactiveinvestors.com.au/companies/news/187045/mmj-phytotech-enters-collaboration-187045.html
<![CDATA[News - MMJ PhytoTech has shares halted pending medical cannabis update from Canada ]]> https://www.proactiveinvestors.com.au/companies/news/185539/mmj-phytotech-has-shares-halted-pending-medical-cannabis-update-from-canada-185539.html The company’s subsidiary, Harvest One Cannabis Inc, is preparing details regarding the status of its application for a sales amendment to its cultivation license granted under Canada’s Access to Cannabis for Medical Purposes Regulations.

MMJ is focused on becoming a large-scale cannabis producer, targeting direct supply to the growing Canadian medical and recreational markets which will have an estimated combined value of C$8-9 billion by 2024.

The halt will remain in place until the opening of trade on Tuesday 17th October 2017, or earlier if an announcement is made to the market.

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Fri, 13 Oct 2017 10:52:00 +1100 https://www.proactiveinvestors.com.au/companies/news/185539/mmj-phytotech-has-shares-halted-pending-medical-cannabis-update-from-canada-185539.html
<![CDATA[News - MMJ PhytoTech’s subsidiary achieves steady progress in the European cannabis market ]]> https://www.proactiveinvestors.com.au/companies/news/185079/mmj-phytotechs-subsidiary-achieves-steady-progress-in-the-european-cannabis-market-185079.html MMJ PhytoTech Ltd’s (ASX:MMJ) indirect subsidiary Satipharm AG is making steady progress in the European cannabis market, recently receiving a "Free Sale Certificate" in Germany.

Satipharm AG is a subsidiary of Toronto Venture Exchange (TSXV) listed Harvest One Cannabis Inc (CVE:HVST), which is 59% owned by MMJ PhytoTech.

The German free sale certificate reduces constraints for international exports and removes the final regulatory trading impediments with other EU jurisdictions.

The free sales certificate establishes Satipharm’s cannabidiol (CBD) capsule as a food supplement rather than a "Novel Food".

Based in Cham, Switzerland, Satipharm AG is the pharmaceutical division of Harvest One and has developed pharmaceutical and nutraceutical products based on medical cannabis.

Importantly, Satipharm is the only company in Europe with a GMP (Good Manufacturing Practices) grade nutraceutical CBD product.

As a result, the company is expected to see an increased demand for the capsule across the EU and increased opportunities to enter other international jurisdictions.

Satipharm’s distribution network has rapidly expanded in 2017 with a focus on the largest European consumer markets: Germany, Denmark, United Kingdom, Ireland, Netherlands, Spain and Austria.

In these countries, Satipharm’s CBD Gelpell capsules are now available in several online shops, on Amazon, mail order pharmacies and in conventional brick and mortar pharmacies.

With some sizable contracts already in place, revenue is expected to be circa C$180,000 in the first quarter of the 2018 fiscal year, with further increases expected in the second quarter.

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Thu, 05 Oct 2017 10:46:00 +1100 https://www.proactiveinvestors.com.au/companies/news/185079/mmj-phytotechs-subsidiary-achieves-steady-progress-in-the-european-cannabis-market-185079.html
<![CDATA[News - MMJ PhytoTech progresses patent application for cannabidiol capsule technology ]]> https://www.proactiveinvestors.com.au/companies/news/182839/mmj-phytotech-progresses-patent-application-for-cannabidiol-capsule-technology-182839.html MMJ PhytoTech Ltd’s (ASX:MMJ) subsidiary Harvest One Cannabis Inc (CVE:HVST) is making progress on the Patent Cooperation Treaty (PCT) application for its cannabidiol (CBD) based capsules.

Significantly, the PCT application submitted by Harvest One’s Swiss-based subsidiary Satipharm AG in February 2017 has now been published.

MMJ maintains a shareholding interest of circa 59% in Harvest One.

The new comprehensive patent application is directed at Satipharm’s proprietary Gelpell-CBD product technology, and covers oral formulations utilising both singular and/or a combination of cannabinoids.

Once granted, the patent will be owned equally by Satipharm and its manufacturing partner Gelpell AG.

The unique Gelpell-CBD product technology enables flexibility in manufacturing a wide range of doses at various ratios of cannabinoids that can be used for multiple indications and personalised medicine.

The patent application will also cover the cannabis-derived prescription drugs developed by MMJ’s wholly-owned, Israeli-based subsidiary PhytoTech Therapeutics.

Cannabis is a big business in Canada. The drug was approved for medicinal use 20 years ago, and almost 30% of young adults say they use it recreationally.

MMJ’s share price has increased circa 66% since the start of 2017, last trading at $0.365.

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Wed, 23 Aug 2017 13:29:00 +1000 https://www.proactiveinvestors.com.au/companies/news/182839/mmj-phytotech-progresses-patent-application-for-cannabidiol-capsule-technology-182839.html
<![CDATA[News - MMJ PhytoTech imports first batch of cannabidiol capsules ]]> https://www.proactiveinvestors.com.au/companies/news/177476/mmj-phytotech-imports-first-batch-of-cannabidiol-capsules-177476.html MMJ PhytoTech’s (ASX:MMJ) Australian distribution partner has successfully imported the first shipment of medicinal products from MMJ’s Swiss-subsidiary, Satipharm AG.

The imported products include two strengths of cannabidiol (CBD) capsules, which are used in the treatment of a variety of medical conditions.

Satipharm’s Gelpell CBD capsules will be used as approved by prescribing physicians under Australian Federal and State laws and regulations.

The Gelpell CBD capsules are one of the first medicinal cannabis products available to approved prescribers in Australia.

Harvest One Cannabis (CVE:HVST) (60% owned by MMJ) owns a cannabis facility in British Columbia, targeting the production of 8,500 kilograms of dried cannabis buds per annum by the end of 2017.

Following a recent agreement to secure a land package located adjacent to the existing facility, Harvest One is aiming to drive production capacity to 50,000 kilograms per annum by 2020.

The Cannabis Act- a bill to legalise the growth, sale, and consumption of recreational marijuana in Canada, is expected to become a law by July 2018.

Cannabis is already big business in Canada. The drug was approved for medicinal use 20 years ago, and almost 30% of young adults say they use it recreationally.

MMJ’s share price has increased circa 82% since the start of 2017, last trading at $0.40.

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Tue, 09 May 2017 12:30:00 +1000 https://www.proactiveinvestors.com.au/companies/news/177476/mmj-phytotech-imports-first-batch-of-cannabidiol-capsules-177476.html
<![CDATA[News - MMJ PhytoTech to update on Canadian cannabis ]]> https://www.proactiveinvestors.com.au/companies/news/177090/mmj-phytotech-to-update-on-canadian-cannabis-177090.html MMJ PhytoTech (ASX:MMJ) has been granted a trading halt by the ASX, with its shares placed in pre-open.

MMJ requested the halt pending an update to provide additional funding to the company’s subsidiary, Harvest One Cannabis Inc (CVE:HVST), to facilitate the expansion of its cannabis cultivation facilities in Canada.

The halt will remain in place until the opening of trade on Wednesday 3rd May 2017, or earlier if an announcement is made to the market.

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Mon, 01 May 2017 14:00:00 +1000 https://www.proactiveinvestors.com.au/companies/news/177090/mmj-phytotech-to-update-on-canadian-cannabis-177090.html
<![CDATA[News - MMJ PhytoTech moves a step closer to importing medicinal cannabis ]]> https://www.proactiveinvestors.com.au/companies/news/175568/mmj-phytotech-moves-a-step-closer-to-importing-medicinal-cannabis-175568.html MMJ PhytoTech’s (ASX:MMJ) Australian distribution partner, HL Pharma, has received approval for a medicinal cannabis importation licence from the Department of Health, Australia.

This is an important development for MMJ as it enables the direct supply to Australian pharmacies through its strategic partnership with Melbourne-based HL Pharma.

HL Pharma will use its extensive distribution network to facilitate the sale of MMJ’s Swiss subsidiary Satipharm AG’s cannabidiol (CBD) capsules to approved customers.

Satipharm’s Gelpell CBD capsules are produced in Switzerland and have successfully undergone a phase 1 clinical trial for safety.

Importantly, Satipharm’s CBD capsules are set to become one of the first medicinal cannabis products available to approved customers in Australia.

Satipharm has the necessary inventory to immediately commence the importation of its CBD capsules into Australia.

Incidentally, the Canadian Federal Government has confirmed it will move to legalise recreational cannabis by 1 July 2018.

The Canadian Government’s initial plans and proposed legislative framework are expected to be publicly released on 10 April 2017.

MMJ owns a cannabis production facility in Duncan, British Columbia, targeting a production capacity of 8,500 kilograms of dried cannabis buds per annum by the end of calendar year 2017.

Following a recently signed agreement to secure a land package located adjacent to the existing Duncan facility, MMJ is aiming to drive production capacity to 50,000 kilograms per annum by 2020.

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Wed, 29 Mar 2017 09:30:00 +1100 https://www.proactiveinvestors.com.au/companies/news/175568/mmj-phytotech-moves-a-step-closer-to-importing-medicinal-cannabis-175568.html
<![CDATA[News - MMJ PhytoTech in an ASX trading halt pending importation update ]]> https://www.proactiveinvestors.com.au/companies/news/175422/mmj-phytotech-in-an-asx-trading-halt-pending-importation-update-175422.html MMJ PhytoTech (ASX:MMJ) has been granted a trading halt by the ASX, pending the proposed importation of the company’s CBD capsules into Australia through its partnership with HL Pharma Pty Ltd.

The halt will remain in place until the opening of trade on Wednesday 29th March 2017, or earlier if an announcement is made to the market.

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Mon, 27 Mar 2017 18:00:00 +1100 https://www.proactiveinvestors.com.au/companies/news/175422/mmj-phytotech-in-an-asx-trading-halt-pending-importation-update-175422.html
<![CDATA[News - MMJ PhytoTech eyes cannabis production growth in Canada ]]> https://www.proactiveinvestors.com.au/companies/news/174569/mmj-phytotech-eyes-cannabis-production-growth-in-canada-174569.html MMJ PhytoTech’s (ASX:MMJ) fully owned subsidiary United Greeneries Holdings has leased a 13-acre land package adjacent to its existing cannabis production facility in Duncan, British Columbia.

The lease will underpin United’s phase 1 expansion strategy, initially supporting up to three acres of additional greenhouse production space.

This is expected to increase production capacity to circa 8,500 kilograms of dried cannabis buds by the end of calendar year 2017.

The agreement also provides scope to further expand United’s landholding with an additional 20 acres of greenhouse production space.

This would drive production capacity at the Duncan facility to circa 50,000 kilograms per annum by 2020, potentially establishing United as one of the largest cannabis producers in Canada.

Importantly, cannabis cultivation activities are well-advanced at the Duncan facility, with the first harvest due this quarter.

Incidentally, MMJ has signed an agreement to import and distribute the company’s medicinal cannabis products in Australia.

This follows the recent changes to Australian government legislation, legalising medicinal cannabis as a controlled prescription drug.

MMJ’s share price has increased circa 80% since the beginning of this year, last trading at $0.39.

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Fri, 10 Mar 2017 08:30:00 +1100 https://www.proactiveinvestors.com.au/companies/news/174569/mmj-phytotech-eyes-cannabis-production-growth-in-canada-174569.html
<![CDATA[News - MMJ PhytoTech studies efficacy of cannabidiol capsules for epilepsy ]]> https://www.proactiveinvestors.com.au/companies/news/173036/mmj-phytotech-studies-efficacy-of-cannabidiol-capsules-for-epilepsy-173036.html MMJ PhytoTech (ASX:MMJ) has commenced the Phase 2 clinical study into the safety and efficacy of its PTL101 capsules in treating refractory epilepsy in children.

The PTL101 drug beads contain organically derived, highly purified cannabidiol (CBD) packed in natural gelatin beads that bound and protect the CBD compound.

MMJ’s PTL101 capsules utilise proprietary formulation developed through the company’s Gelpell-CBD product technology.

The phase 2 study follows the highly successful Phase 1 study, which highlighted the safety and high performance of the Gelpell-CBD capsules.

The capsules successfully demonstrated the effective delivery profile of CBD compound to trial subjects.

It is estimated that about 100,000 children in North America suffer from refractory epilepsy, a treatment resistant category of the disease, causing uncontrollable seizures.

To date, drug therapy remains ineffective in the treatment of epileptic seizures for about 30% of refractory epilepsy patients in North America alone, due to the drug failing to control the frequency of seizures or patients not being able to tolerate the related side effects.

A number of currently available epilepsy drugs have been found to have significant side effects including the impairment of a patient’s motor skills and cognitive abilities.

Incidentally, MMJ has entered into an agreement to import and distribute the company’s medicinal cannabis products in Australia.

This follows the recent changes to Australian Commonwealth legislation, legalising medicinal cannabis as a controlled prescription drug.

MMJ’s share price has increased about 36% since the beginning of this year, last trading at $0.295.

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Mon, 13 Feb 2017 16:30:00 +1100 https://www.proactiveinvestors.com.au/companies/news/173036/mmj-phytotech-studies-efficacy-of-cannabidiol-capsules-for-epilepsy-173036.html
<![CDATA[News - MMJ PhytoTech in C$15M spin-out of cannabis subsidiaries ]]> https://www.proactiveinvestors.com.au/companies/news/171768/mmj-phytotech-in-c15m-spin-out-of-cannabis-subsidiaries-171768.html Harvest One has launched a C$15 million private placement to finalise the acquisition.

United Greeneries is a Canadian licensed producer with a focus on large scale horticultural operations for the upcoming Canadian recreational cannabis market.

Satipharm is an international medical cannabis brand with a focus on oral delivery technologies for the international medical cannabis markets.

Post-acquisition, MMJ will continue to hold about 70% of Harvest One and benefit from its continued growth and development, plus get access to the North American capital markets.

MMJ will also receive C$2 million in cash as part of the transaction.

The new company will use C$9 million from the private placement for phase 1 expansion at the Duncan Facility owned by MMJ’s United Greeneries.

The Duncan Facility is a state of the art cannabis cultivation operation with about 10,000 square feet of cultivation area.

MMJ has signed an agreement for 13+ acres immediately adjacent to the existing Duncan Facility for the purposes of large scale greenhouse expansion.

Harvest One is proposed to be renamed Sol Growth Corp following successful recapitalisation.

A nascent cannabis industry is developing in Canada as the Canadian federal government’s decision to legalise marijuana for recreational use is expected this year.

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Wed, 18 Jan 2017 05:00:00 +1100 https://www.proactiveinvestors.com.au/companies/news/171768/mmj-phytotech-in-c15m-spin-out-of-cannabis-subsidiaries-171768.html
<![CDATA[News - MMJ PhytoTech raises funds, spinning out cannabis subsidiaries ]]> https://www.proactiveinvestors.com.au/companies/news/167185/mmj-phytotech-raises-funds-spinning-out-cannabis-subsidiaries-167185.html The placement was well supported by a number of institutional investors with the company accepting over-subscriptions of $2 million.

The funds raised will provide MMJ with additional working capital, as it focuses on executing the spin out of its core cannabis subsidiaries, United Greeneries Holdings Ltd and Satipharm AG.

United Greeneries is a Canadian licensed producer with a focus on large scale horticultural operations for the upcoming Canadian recreational cannabis market.

Satipharm is an international medical cannabis brand with a focus on oral delivery technologies for the international medical cannabis markets.

MMJ is planning to complete the transaction via a $40 million reverse takeover of Top Strike Resources, which is listed on the TSX Venture Exchange (TSX-V).

Post transaction, MMJ is expected to have a 69% ownership in Top Strike.

The proposed transaction with Top Strike remains subject to a number of conditions, including shareholder approval.

Due diligence activities are progressing well and MMJ remains on track to complete the transaction by no later than the end of December 2016.

A nascent cannabis industry is developing in Canada as the Canadian federal government’s decision to legalise marijuana for recreational use is expected within a year.

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Tue, 11 Oct 2016 11:30:00 +1100 https://www.proactiveinvestors.com.au/companies/news/167185/mmj-phytotech-raises-funds-spinning-out-cannabis-subsidiaries-167185.html
<![CDATA[News - MMJ PhytoTech Ltd gets ready to raise ]]> https://www.proactiveinvestors.com.au/companies/news/167048/mmj-phytotech-ltd-gets-ready-to-raise-71396.html MMJ PhytoTech Ltd (ASX:MMJ) has been granted a trading halt by the ASX this morning, pending details of a capital raising.

The halt will remain in place until the opening of trade on Tuesday 11th October 2016, or earlier if an announcement is made to the market.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Fri, 07 Oct 2016 08:00:00 +1100 https://www.proactiveinvestors.com.au/companies/news/167048/mmj-phytotech-ltd-gets-ready-to-raise-71396.html
<![CDATA[News - MMJ Phytotech Ltd in an ASX trading halt ]]> https://www.proactiveinvestors.com.au/companies/news/138986/mmj-phytotech-ltd-in-an-asx-trading-halt-69477.html MMJ PhytoTech Ltd (ASX:MMJ) has been granted a trading halt by the ASX, pending details regarding the status of the company’s application for a cultivation license under Canada’s Marihuana for Medical Purposes Regulations.

The halt will remain in place until the opening of trade on Thursday 30th June 2016, or earlier if an announcement is made to the market.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Tue, 28 Jun 2016 12:30:00 +1000 https://www.proactiveinvestors.com.au/companies/news/138986/mmj-phytotech-ltd-in-an-asx-trading-halt-69477.html
<![CDATA[News - MMJ PhytoTech signs agreement with Swiss capsule maker ]]> https://www.proactiveinvestors.com.au/companies/news/138985/mmj-phytotech-signs-agreement-with-swiss-capsule-maker-67324.html MMJ PhytoTech (ASX:MMJ) has signed an agreement with a Swiss company Gelpell AG to manufacture its CBD compound into gelatin pellets for the pharmaceutical market.

The agreement is the result of the latest results in a Phase 1 clinical trial carried out on two doses of Gelpell's cannabidiol (CBD) oral capsules.

The company said the CBD capsules demonstrate superior CBD plasma profile to GW Pharmaceuticals (NASDAQ:GWPH) oromucosal spray, Sativex.

The company is planning to develop variety of medical cannabis drugs for several clinical indications using its oral formulations.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Thu, 03 Mar 2016 16:42:00 +1100 https://www.proactiveinvestors.com.au/companies/news/138985/mmj-phytotech-signs-agreement-with-swiss-capsule-maker-67324.html
<![CDATA[News - Phytotech Medical to update on merger plans ]]> https://www.proactiveinvestors.com.au/companies/news/138984/phytotech-medical-to-update-on-merger-plans-63629.html PhytoTech Medical (ASX:PYL) has been granted a trading halt by the ASX pending an update on the company’s merger with MMJ Bioscience Inc, and a capital raising.

In March this year PhytoTech entered into an agreement to acquire 100% of the issued capital of MMJ Bioscience Inc., a Canadian-based multinational vertically integrated medical cannabis company.

Shareholder approval was received on 29 June 2015.

The halt will remain in place until the opening of trade on Tuesday 28th July 2015, or earlier if an announcement is made to the market.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Fri, 24 Jul 2015 10:30:00 +1000 https://www.proactiveinvestors.com.au/companies/news/138984/phytotech-medical-to-update-on-merger-plans-63629.html
<![CDATA[News - PhytoTech Medical eyes cannabinoid MS clinical studies for oral capsules ]]> https://www.proactiveinvestors.com.au/companies/news/138983/phytotech-medical-eyes-cannabinoid-ms-clinical-studies-for-oral-capsules-63286.html Medical cannabis company PhytoTech Medical Limited (ASX:PYL) is advancing towards clinical studies for its unique oral capsules to treat pain and spasticity in multiple sclerosis patients.

The poor water solubility of THC and CBD compounds has always been an issue and this trial will seek to increase the oral bioavailability through use of capsules.

The company has submitted key documents to the Institutional Review Board and National Clinical Trial Committee in Israel to start Phase 1 clinical studies with its tetrahyrocannabidiol (THC) and cannabidiol (CBD) oral capsules.

Submission of Clinical Study Protocol and Investigative Brochure is a key milestone indicating its advanced development stage and readiness to start studies.

The Phase 1 study will be a single-centre, randomised, crossover study to compare the safety, tolerability and pharmacokinetics in healthy volunteers of the two new oral THC and CBD formulations, when administered as single doses.

As part of the study objectives, the Company will select the optimal THC:CBD formulation for delivering THC and CBD, and advance it to a Phase 2 clinical study.

The Phase I study will be performed in Sourasky Medical Clinical Research Center, one of the largest and highly regarded clinical sites in Israel.
   
This is planned to commence in Q4 2015 following IRB and the committees’ approvals, and is expected to conclude after a 9-week period.

Initial pre-clinical study results have indicated a potential high bioavailability of the formulations.

Multiple Sclerosis is a disabling neurological lifelong condition affecting young adults.

According to the National MS Society over 2.3 million people worldwide suffer from MS.

The market for disease-modifying Multiple Sclerosis therapies is predicted to expand at an annual rate of 10% per year, reaching nearly US$21 billion in 2018.

Spasticity is one of the most common and most disabling symptoms, affecting up to 84% of patients (World Health Organisation).

One of the most successful treatments for Multiple Sclerosis pain and spasticity was found to be the use of a safe and tolerable combination of THC and CBD at a 1:1 ratio.

However an optimal oral dosage form is yet to be available due to the substantial “first pass” metabolic effect of the cannabinoids (THC and CBD) in the gastrointestinal tract leading to very limited oral bioavailability of ~6%.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Mon, 06 Jul 2015 09:30:00 +1000 https://www.proactiveinvestors.com.au/companies/news/138983/phytotech-medical-eyes-cannabinoid-ms-clinical-studies-for-oral-capsules-63286.html
<![CDATA[News - Phytotech Medical granted trading halt by ASX ]]> https://www.proactiveinvestors.com.au/companies/news/138982/phytotech-medical-granted-trading-halt-by-asx-61615.html PhytoTech Medical's (ASX:PYL) shares are in pre-open following the ASX granting the company a trading halt.

Phytotech requested the halt pending an update on the company’s proposed merger with MMJ Bioscience Inc.

The halt will remain in place until the opening of trade on Thursday 9th April 2015, or earlier if an announcement is made to the market.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Tue, 07 Apr 2015 12:00:00 +1000 https://www.proactiveinvestors.com.au/companies/news/138982/phytotech-medical-granted-trading-halt-by-asx-61615.html