MMJ is now the ASX’s first recreational cannabis dealer after Canadian pact
Health & Biotech
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Cannabis investor MMJ has become Australia’s first locally listed entrant in the Canada recreational weed market, after one of its investment companies signed a deal in British Columbia.
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 owns 30 per cent of listed Canadian company Harvest One, which owns pot grower United Greeneries.
United Greeneries has just signed an MoU with the British Columbia Liquor Distribution Board to deal recreational cannabis.
The British Columbia Liquor Distribution Board is a government body.
It is the local regulator — and also the only organisation allowed to buy, import and distribute liquor in the State, which is then sold through authoriser retailers or through government stores.
Recreational cannabis will be sold in the same way in British Columbia. Canada’s recreational pot market is estimated at $6.5 billion.
“We are excited to bring our craft cannabis products to British Columbia’s consumers and we look forward to delivering to our customers a premium cannabis experience,” said Grant Froese, CEO of Harvest One.
United Greeneries grows its own gear and is talking to other producers who want a distributor for their product.
The first two brands will be Royal High and Captain’s Choice.
MMJ shares were up 3 per cent to 32c in early Friday trade.
MMJ and United Greeneries have been contacted for comment.