Portfolio Update
Portfolio Update
Perth, Mar 5, 2019 AEST (ABN Newswire) - MMJ Group Holdings Limited (ASX:MMJ) (OTCMKTS:MMJJF) ("MMJ") provides an update on recent events in the MMJ investment portfolio.

1. Portfolio valuation

MMJ's unaudited post-tax Net Tangible Asset (NTA) per share was approximately 34 cents per share as at 5 March 2019 which represents a 36% premium to MMJ's current share price of 25 cents(see Note below).

MMJ's portfolio summary is included in Appendix One(see link below).

We continue to see a positive outlook for MMJ's investment portfolio with continued recovery in the price of Harvest One Cannabis Inc. (HVT), the rollout of HVT's business strategy and further business development announcements across MMJ's portfolio in the coming months.

MMJ has a cash balance of $4m and more than 70% of the portfolio currently held in listed investments.

As announced on 22 February 2019, the Board does not consider an equity raising to be in the best interests of shareholders. However, should the situation improve in the near term, MMJ will be retaining the flexibility to proceed with a Share Purchase Plan (SPP) offering following approval of the SPP by MMJ shareholders on 22 February 2019.

In light of the above, MMJ is assessing the timing of the implementation to allow the SPP and other capital raising options to be implemented when the NTA is better reflected in MMJ's share price.

2. Harvest One Cannabis Inc.

a) Acquisition of Delivra

Harvest One Cannabis Inc. (CVE:HVT) (OTCMKTS:HRVOF) ("HVT") and Delivra Corp. (CVE:DVA) ("Delivra") announced today that they have entered into a definitive arrangement agreement pursuant to which HVT will acquire all of the issued and outstanding common shares of Delivra. Under the terms of the transaction, shareholders of Delivra will receive 0.595 common shares of HVT for each Delivra share.

The acquisition of Delivra and its LivRelief(TM) brand, which produces a variety of topicals and creams with existing distribution channels across Canada, will position HVT well when cannabis-infused products are legalised in Canada, which is expected in the late 2019. The acquisition of Delivra by HVT puts further emphasis on the HVT goal of being a leading house of brands in the global health, wellness, and self-care sector.

The announcement released by HVT is attached (see link below).

MMJ owns 55.5m shares in HVT representing approximately 30% of HVT's issued shares. Following the forecast completion of the Delivra acquisition and the issue of the HVT shares referred to above, MMJ will own approximately 26% of HVT.

b) HVT management report for six months ended 31 December 2018

MMJ has attached a copy of the Management Discussion and Analysis ("MD&A") for the six months ended 31 December 2018 released by HVT on 1 March 2019.

Some of the highlights from the MD&A are:

o Q2 2019 net revenue for HVT was CAD3.7m compared to CAD1.7m in Q1 2019. This increase was primarily attributed to initial recreational load-ins under HVT supply agreements with British Columbia, Ontario, Manitoba and Saskatchewan.

o As of 31 December, 2018, the HVT maintains a cash balance of $41 million. HVT indicated that all current expansion plans are fully funded.

o Expansion plans at the Duncan and Lucky Lake facilities are on track as HVT targets an annual run rate of 20,000 kg premium indoor grown flower by the end of calendar 2019.

3. Completion of Hemple Investment

MMJ has completed its investment of AUD1m of ordinary equity for a 10% ownership interest in Trichomia Pty Limited ("Hemple") as foreshadowed on 14 February 2019.

Note: Share price as at 5 March 2019

To view the announcement, please visit:
http://abnnewswire.net/lnk/ZC6K2WR7


About MMJ Group Holdings Ltd

Phytotech Medical ASX:PYL

MMJ Group Holdings Ltd (ASX:MMJ) is a global cannabis investment company. MMJ owns a portfolio of minority investments and aims to invest across the full range of emerging cannabis-related sectors including healthcare, technology, infrastructure, logistics, processing, cultivation, equipment and retail. For MMJ's latest investor presentation and news, please visit: http://www.mmjphytotech.com.au/investors/

   


Contact

Investor and Media Enquiries:
Jim Hallam
Chief Financial Officer and Company Secretary
T: +61-2-8098-0819
E: info@mmjgh.com.au



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