- MMJ to invest C$2.5 million in Dosecann by way of convertible debentures at an attractive pre-money valuation of C$11.5 million
- Dosecann is a consumer healthcare company focused on developing a suite of cannabis-based health and wellness products for supply to key markets globally
- Dosecann planning construction of a 45,000ft2 GMP pharmaceutical level production facility in Canada - aiming to secure Licensed Dealer status by May 2018
- Dosecann investment to leverage existing synergies within MMJ portfolio
- Following investment in Dosecann, MMJ will maintain a robust cash position of A$3.98 million.
Strategically, the investment in Dosecann will further solidify MMJ's position in the Canadian cannabis sector, leveraging a number of existing operational synergies within MMJ's current investment portfolio.
The Canadian cannabis market is one of the most highly regulated and favourable operating jurisdictions globally, with established Licensed Producers ("LP") set to derive significant commercial benefit from the legalisation of the recreational cannabis market scheduled for July 2018.
- Potential for Dosecann to become a near-term Licensed Dealer ("LD") - as a LD Dosecann will be capable of importing/exporting cannabis in any form, and any controlled substance.
- Dosecann is also applying to become a LP under ACMPR - while the timing of the license is yet to be determined, if it is awarded it will provide MMJ with a significant foothold in eastern Canada.
- MMJ to potentially gain access to an array of new products aimed at the medical cannabis market.
About Dosecann Inc.
Dosecann is a Canadian-based private specialty pharma company that has built a team of experienced scientists, doctors and business leaders. Dosecann offers unique solutions to the emerging cannabis industry for numerous medical conditions.
Dosecann is looking to complete the staged buildout of a 45,000ft2 GMP pharmaceutical level production facility, encompassing the below key highlights:
- Phase 1 buildout of roughly 20,000ft2 at cost of approx. C$5.53 million - targeting completion June 2018
- Proposed facility to include Level 9 security vault
- Facility to include Research & Development and Extraction Lab
- Includes in-house biochemical QA/QC lab
- GMP compliant facility - filling, packaging, labelling and distribution
- Import/export capabilities
The Debentures are convertible in shares and warrants in Dosecann based on a pre-money valuation of C$11.5 million.
Each debenture unit shall consist of one 8% unsecured debenture and 500 common share purchase warrants. The convertible debentures will have a maturity date of two years from the closing date of the offering and will bear interest at 8.0% per annum, payable semi-annually on June 30 and December 31 of each year.
The debentures will be convertible, at the option of the holder, into common shares of Dosecann at any time prior to the close of business on the last business day immediately preceding the maturity date at a conversion price of $1.00 per common share. Each warrant entitles the holders to acquire one common share at an exercise price of $1.20 (20% premium) at any time up to 24 months following the closing date of the offering.
MMJ's Managing Director, Andreas Gedeon, commented:
"We are very pleased to be presenting this latest investment opportunity, as we believe Dosecann's experienced management team and aggressive expansion plans have the potential to create considerable value for our shareholders in the near-term.
"A key focus of the Board has been to solidify MMJ's exposure to the rapidly maturing Canadian cannabis sector and we believe this investment in Dosecann, coupled with our existing holding in Harvest One, is a significant step towards achieving this objective."
About Harvest One Cannabis Inc.
Harvest One Cannabis Inc. (
About MMJ PhytoTech Ltd
MMJ PhytoTech Limited (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/