MMJ Group Holdings Ltd (ASX:MMJ) investee Harvest One Cannabis Inc (CVE:HVT) (OTCMKTS:HRVOF) has completed the sale of its United Greeneries’ licensed cannabis cultivation and processing business in Duncan, British Columbia, to Costa Canna Production Limited Partnership.
Sale of the Duncan Facility has enabled Harvest One to complete the repayment of a secured loan of C$2 million from MMJ.
This loan was advanced in January 2020 to provide Harvest One with the flexibility needed to continue the implementation of its strategic plan while continuing to evaluate long-term financing options.
The proceeds from the repayment of the loan will be reinvested by MMJ into investment opportunities, including those within its existing investee portfolio.
MMJ is the largest shareholder of Harvest One, holding about 26%, and this is one of the largest investments within the MMJ cannabis and hemp portfolio.
MMJ’s investment in HVT comprises of:
- 55,557,994 common shares of HVT with a market value of approximately C$4 million; and
- 17,083,333 common share purchase warrants - each warrant entitles the holder to purchase one common share at a price of C$0.06 at any time until the earlier of the date of the further extension or renewal of the loan, and April 3, 2022.