MMJ Group Holdings Ltd’s (ASX:MMJ) Canadian investment Harvest One Cannabis Inc (CVE:HVT) (OTCMKTS:HRVOF) has entered into definitive agreements to sell its interest in Burb Cannabis Corp, a cannabis retailer in British Columbia.
The agreements also include the sale of HVT’s interest in the 398-acre site in Lillooet, British Columbia, and the total proceeds from both will be C$2.3 million.
This sale of non-core assets follows the announcement earlier this month that HVT was undertaking a strategic review of the business.
MMJ is the largest shareholder of HVT with 26% and it is one of the largest investments within the MMJ cannabis and hemp portfolio.
Proceeds to support branding and distribution
Harvest One chief executive officer Grant Froese said: "The sales of our equity interest in Burb and the Lillooet property are part of our ongoing review of non-core assets, which we initiated as part of a broader enhanced strategic plan announced in November 2019.
“Cash proceeds from these transactions will have an immediate positive impact on our financial position and will support our continued branding and distribution efforts related to Cannabis 2.0."
“Committed to working closely with Harvest One”
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.”
Harvest One is a global cannabis company that develops innovative lifestyle and wellness products to consumers and patients in regulated markets around the world.
MMJ is holding discussions with HVT on a potential extension of the repayment date of the C$2 million secured loan which is currently repayable on March 10, 2020.