MMJ Group Holdings
ASX:MMJ
Building an International Portfolio of Cannabis Investments
Company Highlights
- MMJ Group Holdings Ltd. is a premier publicly listed cannabis investment company based in Australia. The company leverages a diversified investment portfolio and favorable market conditions to create solid opportunities for highly calculated investment.
- The company owns a portfolio of minority interests and seeks new investments across the full range of emerging cannabis-related sectors. The diverse portfolio offers investors exposure to a robust variety of listed and private cannabis-based companies.
- Investment return in the past five years has generated a MOIC of 1.1 times the capital invested. This financial upside is amplified with the company's MOIC of 3.5 times on investments sold in that period including sales of Dosecann Inc. and Medipharm LABS.
- MMJ has a proven track record in acquiring and realizing significant value from its cannabis and hemp-related investments. They combine years of professional experience in investment banking, corporate governance and strategic acquisition.
- Harvest One Cannabis, MMJ's largest investment, saw a 116 percent increase in value totaling CAD$13.4 million in February 2021, presenting the company with exceptional growth potential.
- The company has a strong management team and benefits from having the Canadian-based Parallax Ventures Inc. on its board as its asset manager.
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Overview
Cannabis markets across North America continue to demonstrate exceptional stable growth potential and economic value as a highly prospective space. Despite disruptions from COVID-19 to numerous industries, cannabis saw unprecedented growth across this breakout year.
In 2020, U.S. markets saw a record-breaking US$17.5 billion in adult-use and medical cannabis sales. This almost 46 percent increase from 2019 continues to impress analysts across the industry. With increased talks about extending legalization frameworks in emerging markets in the U.S. and worldwide, investing in the future of cannabis presents big-league potential.
MMJ Group Holdings Ltd. (ASX:MMJ, OTCMKTS:MMJJF, FRA:2P9) is an investment company focusing on international cannabis exposure. The company stands as the only listed investment company offering Australian investors the opportunity to invest in unlisted and listed cannabis-based businesses locally and offshore.
MMJ's portfolio management is focusing on creating a diversified portfolio of CBD and cannabis investments in cultivation, extraction and consumer products with material investments in Weed Me, WeedMD, Sequoya, Harvest One and Southern Cannabis Holdings.
MMJ is also able to make investments in sectors outside of cannabis, such as but not limited to, natural resources, pharmaceuticals and software services technology. Following completion of BCAC's acquisition of a US based wine business, Vintage Wines, MMJ has completed the first non-cannabis investment following the diversification of its investment strategy approved by MMJ shareholders in late 2020.
MMJ operates a robust share purchase plan, which provides eligible shareholders the opportunity to invest in the portfolio at a 51 percent discount to net value assets. This attribute is exceptionally advantageous with the company's generation of substantial realized gains from its sale of Dosecann Inc. and Medipharm LABS, two Canadian cannabis-based companies providing leading cannabis technologies in extraction and product development.
A significant goal for MMJ's Board includes trading its share price at a premium to NAV, considering prospective returns from its high-quality portfolio companies. The company has seen positive trends in investment returns in the past five years and has generated a Multiple on Invested Capital (MOIC) of 1.3 times capital invested. Its mixture of private and listed companies across the emerging Australian and offshore cannabis and hemp markets primes the company for dominant standing as a major investment company.
Its highly-developed investment process includes active formulating, frequent reviewing, and effective investment best practices based on reliable valuation information. The MMJ Board operates as the final approval level for acquisition and the sale of investment proposals, which involve an exercise of rights attached to specific investments. Its current investment approval process operates based on MMJ's Investment Management Agreement with Parallax Ventures Inc, effective from 1 June 1 2019.
Future plans for the company involve focusing on U.S. investment expansion, employing liquidity into Canadian markets and developing its brands and distribution chains. The company notes significant attention towards its Harvest One Cannabis (CVE:HVT) investee, which saw a 116 percent increase in value during February 2021, reaching totals of CAD$13.4 million.
" You can see with Harvest One, which is our largest investment, has a massive distribution network and has very high-quality plans coming along. We believe those types of investments in the long-term will be exceptionally attractive," commented MMJ Non Executive Director Michael Curtis.
MMJ Group Holdings Ltd. comprises a strong team with over 80 years of combined experience in investment banking, corporate strategy and cannabis fields. The company also benefits from having the Canadian-based Parallax Ventures Inc. on its Board as a strategic asset manager. Together, this leadership primes MMJ for significant success and growth with strategies to enhance acceleration and collaboration within the portfolio.
Company Highlights
- MMJ Group Holdings Ltd. is a premier publicly listed cannabis investment company based in Australia. The company leverages a diversified investment portfolio and favorable market conditions to create solid opportunities for highly calculated investment.
- The company owns a portfolio of minority interests and seeks new investments across the full range of emerging cannabis-related sectors. The diverse portfolio offers investors exposure to a robust variety of listed and private cannabis-based companies.
- Investment return in the past five years has generated a MOIC of 1.1 times the capital invested. This financial upside is amplified with the company's MOIC of 3.5 times on investments sold in that period including sales of Dosecann Inc. and Medipharm LABS.
- MMJ has a proven track record in acquiring and realizing significant value from its cannabis and hemp-related investments. They combine years of professional experience in investment banking, corporate governance and strategic acquisition.
- Harvest One Cannabis, MMJ's largest investment, saw a 116 percent increase in value totaling CAD$13.4 million in February 2021, presenting the company with exceptional growth potential.
- The company has a strong management team and benefits from having the Canadian-based Parallax Ventures Inc. on its board as its asset manager.
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