The investment was part of a C$10 million capital raising conducted by Embark to fund the build-out of their three extraction facilities in Delta, BC, Woodstock, Ontario, and Phillipsburg, Kansas.
When the production facilities are operational, Embark Health will be a significant cannabis extraction producer servicing the Canadian and global medical and recreational markets.
The latest raising values MMJ’s near-12% holding in the company at A$9.8 million, which is nearly triple its book value of A$3.3 million.
MMJ’s chairman Peter Wall said: “This is another example of MMJ’s strong market and financial discipline identifying opportunities and bottlenecks in the cannabis value-chain in markets and acting quickly.”
“Embark Health has executed its business plan and is well-positioned to become one of the largest cannabis extraction business in North America within twelve months.
“The investment demonstrates MMJ’s expertise to secure a private negotiated investment in listed and unlisted cannabis businesses which are not generally available to Australian retail and institutional investors.”
MMJ’s portfolio of investments ended the recent September quarter with a total value of $74 million for a net tangible asset (NTA) per share valuation of 30.1 cents.
With shares last priced at 23 cents, this represents over a 20% discount to NTA.
Article source: Proactive InvestorsBack to News