Cannabis play MMJ sells down Harvest One stake and THC changes its name
Health & Biotech
Cannabis investor MMJ is selling almost 10 per cent of it main interest in Canada to spread its money elsewhere as the legal marijuana market continues to grow strongly.
MMJ recently announced a change of name and direction, offloading its Phytotech Therapeutics business for $8 million to focus on building a portfolio of minority marijuana investments.
MMJ is now selling up to 5 million of the 53.3 million shares it owns in listed Canadian cannabis play Harvest One.
At Harvest One’s closing price on Thursday of $C0.77, that would be worth $C3.9m ($4.1m).
At the same time it is set to receive 8m shares in Harvest One for on-selling its Phytotech subsidiary.
“After being fully-invested since the end of July, and with a significant shareholding in Harvest One that will soon increase on completion of the Phytotech sale, it is prudent to be both ready and able to trim our ownership stake so we can participate in other cannabis sector investment opportunities as they arise,” said MMJ CEO Jason Conroy.
MMJ lost control of Harvest One in January when the Canada-listed company raised $CAD35 million. Its stake fell from 59 per cent to 30 per cent.
In the last 12 months MMJ has switched from vertically integrated cannabis ‘farm-to-pharma’ model to a pure-play investor.
With a background in corporate finance and deal making, Mr Conroy was brought in during March to clean house after years of weird deals.
He told Stockhead in July is wants to reposition the company as an investor and attract institutional and sophisticated money onto their register.
MMJ shares were flat on Friday at 33c, but they have started rising slowly from an 18 month nadir in September.
A change is as good as a holiday
Another farm-to-pharma wannabe is finally changing its name from the convoluted ‘The Hydroponics Company’ to THC Global Group (ASX:THC).
In an extraordinary general meeting notice late on Friday, THC proposed the name change, alongside requests that shareholders approve options and shares to be given to directors and 19.4m shares and options issued in December last year, and in July and September this year.
THC is hoping they’ll receive a medical cannabis manufacturing licence for its Southport, Queensland, manufacturing facility as well as a grower permit for the Bundaberg greenhouse before the end of the year.