Hygrovest Limited

Overview

Hygrovest Limited (ASX:HGV) has a globally diversified portfolio focused on investing in private and public companies in high-growth industries. Hygrovest has investments in cannabis-focused companies and in December 2021, the company expanded their portfolio to include healthcare, natural resources, and the digital economy as well as e-sports, sports betting, online gaming, and fintech.

Hygrovest's diversified investment is managed by Parallax Ventures Inc. (“Parallax”), a specialist management company in Canada, under a long-term strategic partnership. The agreement with Parallax offers access to new investment opportunities, added material value to existing investments, minimised HGV’s fixed cost structure, and secured meaningful investment presence in HGV’s key investment market – North America.

Hygrovest's portfolio includes a 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.

Hygrovest 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 Hygrovest'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 Hygrovest 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 Hygrovest'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 (TSXV: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 Hygrovest Non Executive Director Michael Curtis.

Hygrovest Limited 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 Hygrovest for significant success and growth with strategies to enhance acceleration and collaboration within the portfolio.

Company Highlights

• Hygrovest has a globally diversified portfolio that includes private and public companies in high-growth industries.
• Hygrovest has expanded their portfolio to include healthcare, natural resources, and the digital economy as well as e-sports, sports betting, online gaming, and fintech.
• 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.
• Hygrovest has a proven track record in acquiring and realizing significant value from its investments. They combine years of professional experience in investment banking, corporate governance and strategic acquisition.
• Harvest One Cannabis, Hygrovest'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.