After a pivotal 2020, legal cannabis sales in the United States reached a record $ 17.5 billion in adult and medical cannabis. In addition, the growing discussions on extending legalization frameworks in emerging markets around the world have made investment in the future of cannabis promising.
MMJ Group Holdings Ltd. (ASX: MMJ) (OTC: MMJJF), formerly MMJ PhytoTech Limited, is an Australian listed company primarily engaged in holding minority investments along the cannabis value chain in Australia, Canada and Europe.
The company’s portfolio management is focused on building a diversified portfolio of investments in CBD and cannabis in cultivation, extraction and consumer products with physical investments in Weed Me Inc. (OTCPK: WDDMF), Entourage Health Corp (TSX-V ENTG) (Formerly WeedMD), Sequoya Cannabis Ltd., Harvest Un Cannabis Inc. (OTCQB: HRVOF) and Southern cannabis holdings.
In addition, MMJ is also able to invest in sectors other than cannabis, such as, but not limited to, natural resources, pharmaceuticals and software services technology.
Harvest a is a licensed cannabis producer based in British Columbia, Canada. The company claims an excellent record for its Discover series given its smaller profile among investors and ambitious expansion schedules.
The company currently operates a small licensed production facility, primarily through its two subsidiaries, Plain greenery and Satipharm. Both assets were acquired from MMJ PhytoTech (OTCPK: MMJJF) in April 2017. It also acquired Dream Water, a branded liquid sleeping pills product.
Harvest One has also established a footprint in certain international markets which may offer additional option value when those markets mature.
The company announced its unaudited financial results for the first quarter and nine months ended March 2021. Here are some highlights:
- The company’s revenue is C $ 2.02 million from continuing operations in the current quarter, compared to C $ 1.88 million for the same period in 2020.
- The product line continues to shift from cultivation to consumer packaged products (CPG).
- of continuing operations, in the current quarter, the company reported 37% gross profit compared to 24% for the same period in 2020.
- On March 17, 2021, HVT closed an oversubscribed public offering of CA $ 5.75 at a price of $ 0.155 per unit.
Southern cannabis holdings
Southern Cannabis Holdings builds, integrates and operates high value brands throughout the cannabis value chain. The holding is formed by Freshleaf Analytics, a source of big data and personalized analytics for the medicinal cannabis industry; Cannabis Access Clinics, an Australian network of medicinal cannabis clinics and Applied Cannabis Research, Australia’s premier contract research organization focused exclusively on the treatment of medicinal cannabis.
MMJ has a myriad of possibilities for those looking into the general international cannabis market. The company has a mix of private and publicly traded companies in the emerging Australian and offshore cannabis and hemp markets, which places it in a dominant position as a major investment firm.
In the company’s latest investment portfolio report, MMJ’s net asset value (before tax provision) fell 5% in the year ended June 2021 from its positive benchmark of 61. %.
MMJ’s portfolio during the year was heavily weighted in unlisted investments, and as of June 30, 2021, listed assets only represented 27% of MMJ. A number of unlisted companies have postponed their IPO intentions during the fiscal year ended June 2021.
This significant unlisted bias in the portfolio impacted both performance compared to the benchmark and the steep discount of the share price compared to the NAV, which stood at 56% at the end of the year. ‘year. In addition, the benchmark (only listed assets) was favorably impacted by IPO and merger activity during the year.
MMJ’s financing position
MMJ is well positioned to create value from its existing portfolio with a liquid balance sheet and cash flow from investments:
- Total assets of $ 44 million with insignificant current liabilities
- Cash of AU $ 3.4 million, corporate tax refund receivable of $ 4.6 million and a portfolio of listed equities (C $ 6 million), listed convertible loans (C $ 4 million) CDN $) and unlisted loan securities (CDN $ 3M), which provide flexible interest income to fund investment flows, affect the timing of investment outflows and MMJ’s operational needs
To learn more, visit the company’s website.