viewMMJ Group Holdings Ltd

MMJ Group books 33% investment return for FY2019

MMJ is a global cannabis investment company with a portfolio of listed and unlisted holdings.

The company’s total portfolio including cash at 30 June 2019 was $95.5 million

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.

Quick facts: MMJ Group Holdings Ltd

Price: 0.097 AUD

Market: ASX
Market Cap: $22.31 m

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of MMJ Group Holdings Ltd named herein, including the promotion by the Company of MMJ Group Holdings Ltd in any Content on the Site, the Company...



Full interview: MMJ Group sees strong future for cannabis sector amid global...

MMJ Group (ASX: MMJ) Non-Executive Director Michael Curtis joined Steve Darling from Proactive Vancouver to discuss his thoughts on the cannabis industry and how that sector is doing during the Corona outbreak. Cannabis stores were deemed an essential service. Curtis also talked about how...

on 14/5/20

3 min read