MMJ sets sight on global cannabis investments in health, food and retail
Health & Biotech
Health & Biotech
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Cannabis producer MMJ Phytotech is planning to expand its marijuana investments under a new name, MMJ Capital.
MMJ (ASX:MMJ) already has a 59 per cent stake in Canada’s Harvest One Cannabis and owns 100 per cent of Isreali-based development company PhytoTech Therapeutics.
It is now considering “a number of independent strategic investment opportunities” across a diverse cross-section of cannabis-related segments, ranging from healthcare to hemp food and retail.
The ASX pot sector has grown to at least 17 companies since Australia opened the market for scientific and medical marijuana cultivation in February last year — and for medicinal consumption in November. Hemp seed food products become legal in Australia from November 12.
MMJ shares were up slightly to 36.5c in Tuesday morning trade, valuing the company at about $75 million.
MMJ would now look to early stage opportunities off the back of the successful listing of two Harvest One subsidiaries on the Toronto Stock Exchange.
“Harvest One also bring to the table a world-class bank of diversified commercial cannabis genetics, which is the legal and operational bottleneck in almost every newly regulated cannabis market,” director Andreas Gedeon said.
“I believe that this strategy will provide an unprecedented opportunity in the Australian market to our shareholders and that it will solidify MMJ’s position as the thought leader and first mover in the international cannabis industry.
“MMJ will pursue early stage opportunities with the ability to deliver significant future revenue and the opportunity to provide dramatic global synergistic value once international regulations will be harmonised in the future,” the company told investors.
MMJ had $21,000 worth of cannabis seed and $60,000 in live plants at the end of the financial year, with estimated yield of 92,000 kg.
MMJ made a loss of $12 million last year, down from $14 million the year prior.
They made $35,000 in sales and had $23 million in the bank at the end of the period.