Net Tangible Asset Backing - 41 Cents
1. Portfolio valuation
MMJ announces that its unaudited NTA per share as at 28 February 2019 was approximately 31 cents (post-tax)(see Note 1 below).
Subsequently MMJ's post-tax NTA per share increased a further 32% to approximately 41 cents per share as at 19 March 2019(see Note 2 below) which represents a 57% premium to MMJ's current share price of 26 cents(see Note 3 below).
The major driver of the increase has been the continued recovery in the price of Harvest One Cannabis Inc. (HVT) from CAD0.62 to CAD0.99 since 28 February 2019.
MMJ has taken advantage of the share price growth of Medipharm LABS Inc. (LABS) by selling down part of its investment in LABS to provide liquidity for future investments. MMJ retains a substantial investment in LABS with 2.4 shares and 2.94m warrants with book value of AUD16m.
MMJ's portfolio summary is included in Appendix One (see link below).
MMJ has liquid funds of $7.6m(see Note 4 below) and more than 80% of the portfolio is held in listed investments.
2. Portfolio news - Harvest One Cannabis
HVT, through it's wholly-owned subsidiary United Greeneries Ltd. ("United Greeneries") today announced that it has entered into an agreement to become a medical cannabis supplier to Shoppers Drug Mart.
Shoppers Drug Mart is Canada's leading drug store retailer with more than 1,300 pharmacist-owned locations from coast to coast.
Under the terms of the agreement, HVT will supply Shoppers Drug Mart with Satipharm branded medical cannabis products. The products will be sold online, as Canadian regulations restrict the sale of medical cannabis in retail pharmacies.
This marks the first time that Satipharm branded cannabis will be available for purchase. Working in conjunction with Shoppers Drug Mart in an effort to help consumers make specific, educated decisions about their purchases, Satipharm will be available in a continuum of products, each colour coded to indicate their place on the progression from the high THC of SatiWhite(TM) to the high CBD of SatiPurple(TM). At launch, United Greeneries will produce and ship an Indica variety of SatiSilver(TM) and a hybrid variety of SatiGreen(TM).
HVT represents 59% of the MMJ portfolio.
1 The post NTA reflects Australian corporate tax rate of 30% on unrealised gains in investment portfolio
2 Using investee valuations as at 19 March 2019 AEDT
3 Share price as at 19 March 2019
4 Includes cash and unsettled security settlements
To view the Appendix, please visit:
About MMJ Group Holdings Ltd
MMJ Group Holdings Ltd (ASX:MMJ) is a global cannabis investment company. MMJ owns a portfolio of minority investments and aims to invest across the full range of emerging cannabis-related sectors including healthcare, technology, infrastructure, logistics, processing, cultivation, equipment and retail. For MMJ's latest investor presentation and news, please visit: http://www.mmjphytotech.com.au/investors/
MMJ Group Holdings Ltd
MediPharm Labs Corp.
Harvest One Cannabis Inc