MMJ Group Holdings Ltd (ASX:MMJ) investee WeedMD has completed the planting of more than 18,000 fully-rooted cannabis plants at a 27-acre outdoor field adjacent to its modern greenhouse in Strathroy, Ontario.
WeedMD also confirms that its CX Industries extraction hub in Aylmer is fully operational and extracting cannabinoid-rich, indoor and outdoor harvested biomass into new cannabis formats.
Vape products launch this month
CX Industries is producing vaporisation (vape) cartridges for initial launch in the week of June 22 to WeedMD and Starseed’s medical channels.
The new products will expand into the adult-use markets by quarter three of 2020 under WeedMD’s Color Cannabis brand.
“Seven optimal outdoor strands”
WeedMD chief executive officer Angelo Tsebelis said: “The ability to effectively cultivate cannabis outdoors optimises our yields for cost-efficient production to develop products with greater commercial sales value.
“Over the past few months, our cultivation team has made significant headway in boosting outdoor efficiencies, selecting seven optimal outdoor strains and propagating over 18,000 cannabis clones now fully rooted and planted.
“Additionally, with the ramp-up of CX Industries, we are now commercialising our extraction-grade, cannabinoid-rich biomass harvested indoors and outdoors into new cannabis formats starting with vapes to meet our production targets.”
WeedMD investment details
MMJ’s initial investment in WeedMD was made in September 2019 and now comprises:
- C$6 million in 8.5% unsecured convertible debenture units issued by WeedMD, which MMJ has the option to convert into 3.75 million shares by September 25, 2022;
- The debenture units have preference over ordinary shares with interest paid to MMJ on quarterly basis;
- Warrants that allow MMJ to acquire an additional 3.75 million shares for C$1.80 each by September 25, 2022; and
- MMJ had generated a total return of 0.7 times on its investment.