The first step includes Embark Health having received its processing licence from Health Canada for its Delta, British Columbia, facility, which marked a positive step and brought Embark a step closer to full-scale production at that facility.
The company, which also has a facility in and Ontario, is now working closely with Delta, BC authorities to receive building and occupancy approval for both phases of the first floor.
Canadian 2020 public listing
Secondly, Embark Health has advised its shareholders that the company is seeking to publicly list in Canada during 2020.
MMJ was a founding investor in Embark Health in July 2018 and owns about 12% of the company with an investment book value of A$13.9 million consisting of 3.4 million shares and 3.3 million warrants.
Its investment in Embark Health demonstrates MMJ’s capacity to originate early-stage unlisted investments in the cannabis sector with the prospect of realising potential gains on listing the public markets.
Harvest one strategic review
Another Canadian investment of MMJ, Harvest One Cannabis Inc (CVE:HVT), is undertaking a strategic review of the business.
Harvest One specialises in managing a portfolio of investments in the cannabis value-chain and MMJ is its largest shareholder, with a 26% stake.
MMJ non-executive chairman Peter Wall said: “We believe Harvest One is significantly undervalued given its substantial cultivation and Cannabis 2.0 assets.
“We are committed to working closely with Harvest One to realise that intrinsic value.”
MMJ holds two investments in HVT:
- A 26% stake in the company, which is one of the largest investments within the MMJ cannabis and hemp portfolio; and
- C$2 million secured loan, bearing interest at a rate of 15% per annum. MMJ has first ranking security interest in all current and after-acquired property of HVT and its subsidiaries, subject to certain permitted liens.
MMJ is holding discussions with Harvest One on the potential extension date of the C$2 million secured loan repayment, which is currently repayable on March 10, 2020.
Harvest One develops and provides innovative lifestyle and wellness products to consumers and patients in regulated markets around the world.