MMJ Holdings stays flexible on capital strategy, offers improved terms to investors
Health & Biotech
Health & Biotech
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Special Report: The specialist cannabis investment group has sweetened the terms of its latest capital raise, as it positions to take advantage of key market opportunities.
For MMJ Holdings (ASX:MMJ), the global cannabis sector presents a number of compelling investment propositions for those who know where to look.
Coming off the back of the 2019 bear market, the ASX-listed group – which manages a portfolio of investments spanning the global supply chain – is ready to deploy capital as the sector repositions for growth.
In particular, MMJ is focused on opportunities in the mature North American market, where it has a competitive advantage on the ground through its investment in Toronto-based Embark Ventures.
In order to capitalise, the company recently announced a share placement plan which allowed eligible shareholders to purchase between $1,000 and $30,000 worth of MMJ shares, priced at 11c per share.
The company has now announced an improvement to those deal terms – an example of its ability to stay flexible amid the market ructions caused by the COVID-19 outbreak.
Instead of 11c per share, shareholders will now be able to buy shares at the higher of 8c, or a 20 per cent discount to the volume weighted average price of MMJ shares, calculated over the five days prior to the revised issue date of April 2, 2020.
Shareholders also have an extra week to decide how they will invest. The closing date for the SPP has been extended to March 24, from March 17 previously.
If priced at 8c, the offer represents a substantial 27 per cent discount to the previous offer, giving investors a great opportunity to get exposure to global cannabis investment opportunities at a compelling valuation point.
Participation in the SPP, which was first announced in February, is optional and all other terms and conditions of the SPP remain unchanged.