Headquartered in Australia, MMJ Group Holdings Ltd (ASX: MMJ) works with cannabis-related companies like Harvest One, Martha Jane Medical and MediPharm Labs. The company aims to invest across the full range of cannabis-related sectors.
The company released an update on MMJ’s recent activities on 8 May 2019. The MMJ’s Chief Financial Officer, Jim Hallam’s interview with Finance News Network topped the list of MMJ’s activities. During the interview, the CFO talked about MMJ investment returns, funding, its portfolio and investment management in the interview.
The highlights from the CFO’s interview are given below:
- The MMJ share offers a great investment opportunity for investors looking to initially invest or increase their investment in the cannabis investment sector. The MMJ share is trading at a discount of 48 per cent to Net Asset Value (NAV).
- Since its inauguration, the company has provided a return of 17 percent per annum.
- The company has delivered a post-tax return of 38% since 1st July 2018.
- The NAV and the cash balance of the company stand at AUD92m and AUD25m respectively.
- The company has cancelled its equity raising proposal through a share purchase plan.
- 80% of the MMJ’s portfolio comprises of MMJ’s listed investments and cash reserves.
- A pre-tax return of 33% per annum has been generated by MMJ, on its investment in HVT since the beginning.
- MMJ is looking out for new opportunities in Canada and Australia.
- MMJ is capable of sourcing private investments which are out of reach of Australian retail and institutional investors.
- The proposed hiring of Embark Ventures (EBV) would not result in any increase in MMJ’s operating costs.
The company reported its Net Asset Value as 40 cents on 7th May 2019 relative to 39 cents at 31st March 2019.
Further, MMJ’s CFO, Jim Hallam would participate in the upcoming Finance News Network investor conference to be held in Sydney on Tuesday, 21 May 2019.
The company proposed the hiring of Embark Ventures (EBV) as Manager of MMJ’s investments in mid-April 2019. Embark Ventures’ representative would conduct investor presentations in June on his visit to Australia. The company considers the hiring of a third party “Manager” as a better option than the appointment of CEO. The company announced the resignation of its CEO Mr Jason Conroy on 4th February 2019. MMJ expects an agreement with Embark Ventures to occur within the next two weeks.
The stock of the company is currently trading at A$0.235 (as on 9 May 2019, 12:10 PM AEST). The company’s stock price has risen after the update notification on ASX. The 52-week high and low value of MMJ’s stock was recorded as AUD 0.395 and AUD 0.185 respectively. MMJ’s market capitalisation stands at AUD 52.93m with 230.15m shares outstanding. In the last three months period, the stock of the company has given a negative return of 4.17%. However, in the last five days, the stock has given a yield of 6.98%.
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