MMJ Group Holdings Limited (ASX: MMJ) resumed the normal trading session on November 22, 2018 i.e. today. Trading in MMJ securities was halted since October 5, 2018, on account of its transition from medical cannabis company MMJ Phytotech to the cannabis investment company MMJ Group. The first opening session after the six-week trading halt witnessed a significant fall from the closing levels of $0.33 made on October 4, 2018.
MMJ portfolio comprises of investment in 10 minority businesses, of which two are in emerging medical market, one is in Hemp derived CBD market and remaining 7 in legal recreational market. MMJ has approximately $56m worth of assets under management (AUM) and this includes $1.6m of corporate cash at bank.
Meanwhile, MMJ in its investor presentation has demonstrated its outlook for the year 2019. MMJ is highly positive for the year ahead. With its investment in ten minority businesses that are expected to perform well based on their projected capacity targets and financials, MMJ is banking on overall positive outlook for the year 2019.
MMJ with its investment in Harvest one, one of its minority business investment is targeting a cultivation capacity of approximately 20,000kg per annum by the end of the 2019 calendar year. Annual revenue run rate of CAD $10 million is expected to be reported by Satipharm by June 30, 2019. Annual run-rate is expected to double to CAD $12 million for Dream water in the next 6 to 8 months. As on September 28, 2018, Harvest one reported CAD $50 million of cash with zero debt on its balance sheet.
MMJ investment MediPharm Labs expects the processing capacity to raise to 250,000kg of dry cannabis per year by the end of Q2/CY19. MediPharm Labs’ growth is witnessed by its growing customer base with new additions on a continuous basis. MMJ investment in Weed Me has completed the construction of their cannabis cultivation facility in Ontario and has acquired a retail sales licence. Its Investment in Embark Health has constructed the cannabis extraction and product manufacturing facility in British Columbia and has attained the designation of a Licensed Dealer.
BevCanna with their cannabis beverages manufacturing facility in British Columbia is now designated as an ACMPR Licensed Producer. VitaGenne has commenced sales of the hemp-derived CBD tinctures, gel capsules, pain and repairing creams in the United States.
Cannabis Access Clinics is continuously working towards the establishment of the new medical cannabis clinics across Australia. Martha Jane Medical has made an application to obtain a manufacturing licence and is in the process to get further funding for its Tasmanian cannabis extraction business. Bien has created proprietary products at its cannabis derivatives manufacturing facility in Alberta.
MMJ investment in Fire & Flower has continued its focus towards the establishment of retail cannabis stores across Canada and got listed on the TSX-V.
MMJ portfolio is currently focused on North America which has large markets for recreational cannabis and hemp-derived CBD products.
MMJ shares saw a sudden fall of 21% from its closing levels of $0.33 made on October 4, 2018 to the day low made at the levels of $0.26 as on November 22, 2018. MMJ shares are currently trading at the levels of $0.275, down 16.67% as at 3:30 PM AEST on November 22, 2018.
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