Hygrovest eyes opportunities in high growth sectors
Last updated: 12:23 13 Mar 2024 AEDT, First published: 15:42 06 Oct 2020 AEDT
Snapshot
- Hygrovest confident that signs point to improved financial results
- MMJ Group performs well in July, exceeds benchmarks
- MMJ Group Holdings to broaden investment mandate and change name to Hygrovest Ltd
About the company
Hygrovest Ltd (ASX:HGV) is a specialist investment company focused on listed and unlisted equities and other financial assets.
Investments are managed by Parallax Ventures Inc., a specialist management company in Canada, under a longterm strategic partnership.
How it is doing
Hygrovest Ltd (ASX:HGV, OTC:MMJJF) is confident of improving financial results in the next 12 months with recent investments starting to perform well and its legacy cannabis portfolio expected to benefit from positive movements in global legislation.
Legislative changes in Germany and discussions in Canada about reducing the excise tax should improve operating conditions for Hygrovest’s cannabis investments.
Germany legalised cannabis in February, a move that is also expected to increase the valuation of these legacy cannabis investments.
Hygrovest is an Australian-listed specialist investment company which concentrates on producing capital growth for shareholders over the medium term from investments in listed and unlisted equities and debt securities.
Hygrovest Ltd (ASX:HGV, OTC:MMJJF) looks well placed as it starts the year with its larger private holdings performing in line with expectations while opportunities exist in the listed space.
The company’s investment manager is HD Capital Partners, a value-oriented, fundamental bottom-up stock picker focusing on opportunities in listed small cap equities markets.
The highlight for Hygrovest Ltd (ASX:HGV, OTC:MMJJF)’s portfolio for the month of November 2023 was Delivra Health Brands Inc. (TSX-V:DHB), which posted strong quarterly results suggesting its turnaround may be on track.
Hygrovest is Delivra’s largest shareholder with a 22% shareholding.
Insight: MMJ Group performs well in July, exceeds benchmarks
MMJ Group Holdings Ltd (ASX:MMJ, OTC:MMJJF) performed well in July with its net asset value declining just 1% (before provision of tax) in the month, far exceeding the benchmark of 11% over the same period.
Over the 12 months to July 31, 2021, MMJ’s investment return is a positive 12%, while its total portfolio stands at A$38 million.
What management says
MMJ Group Holdings Ltd (ASX:MMJ, OTC:MMJJF) CEO Michael Curtis tells Proactive the group will focus on broadening MMJ’s investment mandate to include other sectors, and change MMJ's name to Hygrovest Limited.
Curtis says MMJ's current restriction that limits MMJ’s investments in non-cannabis assets to 25% of its total assets would be removed. Shareholders will vote on the changes at the company's 2021 AGM on December 17th.