Dosecann Divestment Completed
Dosecann Divestment Completed
Perth, May 18, 2018 AEST (ABN Newswire) - MMJ PhytoTech Limited (ASX:MMJ) ("MMJ") is pleased to announce that Cannabis Wheaton Income Corp (CVE:CBW) ("Cannabis Wheaton") has completed the acquisition ("Acquisition") of Dosecann Inc. ("Dosecann"). The Acquisition proposal was announced by MMJ on 5 April 2018.

Prior to the Acquisition, MMJ held:

- a CAD$2.5 million convertible note ("Convertible Note"); and

- warrants providing the ability for MMJ to acquire a further 1.25 million Dosecann common shares at CAD$1.20 per common share ("Warrants").

As consideration for the Acquisition:

- MMJ's Convertible Note was converted into 3.12 million common shares in Cannabis Wheaton; and

- MMJ's Warrants were converted into warrants in Cannabis Wheaton providing the ability for MMJ to acquire a further 1.56 million Cannabis Wheaton common shares at CAD$0.962 per share up until January 2020.

This consideration is currently worth a total of CAD$5.9 million based on Cannabis Wheaton's share price of CAD$1.59 (as at 17 May 2018) and represents an unrealised multiple on invested capital of 2.4x to MMJ's shareholders.


About MMJ PhytoTech Ltd

Phytotech Medical ASX:PYL

In October 2017, MMJ PhytoTech Limited (ASX:MMJ) announced its strategy to become an incubator for strategic investments across regulated jurisdictions globally covering the entire cannabis value chain.

Following the successful listing of United Greeneries Holdings Ltd ("United Greeneries") and Satipharm AG ("Satipharm") on the TSX-V through Harvest One Cannabis Inc. (CVE:HVT), MMJ has focused on the identification of a number of independent strategic investment opportunities that have the potential to deliver significant value to the Company's shareholders.

MMJ is actively pursuing early stage opportunities with the ability to deliver significant future revenue and the opportunity to provide dramatic global synergistic value as regulatory frameworks in key international markets continue to evolve. MMJ is targeting the full range of emerging cannabis-related sectors including healthcare products, technology, infrastructure, logistics, processing, cultivation, equipment, R&D, hemp food products and retail.

MMJ currently holds an equity stake of 53,333,333 shares in Harvest One, 100% ownership of Israeli-based R&D division PhytoTech Therapeutics Limited ("PTL") and strategic holdings in e-Sense Lab Limited (ASX:ESE) and private Canadian-based company WeedMe Inc.

      


Contact

Investor and Media Enquiries:
Jason Conroy
Chief Executive Officer
E: jconroy@mmjphytotech.com.au



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