Cannabis: MMJ drops $2.2m on North American Harvest One
Health & Biotech
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MMJ Group (ASX:MMJ) has extended a $C2m ($2.2m) loan to its North American cannabis investment, Harvest One Cannabis, while Medlab Clinical has tipped likely catalysts for share price movements this year.
MMJ has a 26 per cent stake in Toronto-listed Harvest One, which also trades its stocks on the over-the-market in the US.
Harvest One has lifestyle and wellness products it sells in regulated markets around the world.
MMJ makes minority investments in cannabis companies.
Harvest One CEO Grant Froese welcomed the loan saying it would provide the company with flexibility to implement a strategic plan as it assessed financing options for the long term.
“There is momentum across our business as we continue to focus on our strengths in brand development and distribution,” he said.
Froese highlighted what he saw as a recovery in the Canadian cannabis industry sector.
“We see significant opportunities for growth as we leverage our extensive brand portfolio as Cannabis 2.0 takes hold in Canada,” he said.
The loan has a 15 per cent interest rate payable after 60 days.
In exchange MMJ will take a security interest over Harvest One, its property and subsidiaries.
Medlab Clinical (ASX:MDC) has outlined its expected catalysts for improved pricing this year, including further clinical trial progress for its drug candidates including cancer pain drug NanaBis, early revenues from pharmaceutical and nutraceutical sales, licensing opportunities for the NanoCelle delivery platform and commercial revenues from technologies developed in-house.