MMJ Group Announces CEO Resignation – Stock in Red Zone

MMJ Group Tumbled On ASX Post Update On Resignation Of The CEO

MMJ Group Holdings Limited (ASX: MMJ) is a global cannabis investment company having engagements with groups like Harvest One, a global cannabis company which caters to Canada and international markets. The group focuses on investments in cannabis-related sectors that relate to healthcare, logistics, processing, cultivation, technology, and retail. The company is also engaged in Clinical research activities, along with cultivation and distribution of cannabis. [optin-monster-shortcode id=”swikrbu1d9j9aq0o4cko”]

On 4 February 2019, the company announced that the CEO of the company, Mr. Jason Conroy has resigned. Since the agreed last day in the company for Mr. Conroy will be 1 March 2019, the company will get enough time in advanced to identify and appoint a replacement CEO. The company is in the process of instructing an international search firm. Pending an appointment, the CFO, Jim Hallam, will ensure that the Share Purchase Plan and portfolio administrative matters are completed.

The Chairman of the company Peter Wall thanked Jason for his efforts to convert MMJ into a listed investment company which has significant opportunities for further growth and development. The company can outperform going forward, and the Board believes it will be able to attract high caliber candidates to replace the current CEO.

The company owns 55,557,994 shares in Harvest One for a 30.5% shareholding, and Harvest One Cannabis Inc on 30 January 2019 confirmed that it had launched European sales of its recently reformulated Satipharm CBD capsules. Major retailers in the United Kingdom, the European Union, and Canada will be involved in the distribution of this medicine in the markets.

Let us have a look at the financial performance of the company in FY18. The company reported a profit of $1.19 million in FY18 compared to the loss of $14.14 million in FY17. The total assets for the company stood at $65.03 million approximately as compared to $47.24 million in FY17. The company has reported a net cash outflow from operating activities of $8.267 million approximately in FY18 compared to $7.571 million in FY17. However, the net cash outflow from investing activities stood at $91.15 million in FY18, and the net cash inflow from financing activities was reported at $77.57 million in FY18.

Now let us quickly have a look at the MMJ Group Holdings Limited’s stock performance coupled with returns it has posted over the last few months. The stock is currently trading at a price of $0.230 and decreased by almost 8.0% approximately during the day’s trade, with a market capitalization of $57.54 million. The stock opened at $0.250 with its day high at the same price and a day’s low price of $0.225. The stock has yielded a YTD return of 2.04% and posted returns of negative 5.66% and 7.41% over the last six months and three months period respectively. It has a 52-week high price of $0.540 and a 52-week low of $0.185, with an average trading volume of 473,903 approximately.


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