Update on MMJ’s investment in Harvest One
MMJ Group Holdings Limited (ASX:MMJ) (“MMJ”), an Australian-listed company that specialises in managing a portfolio of investments along the cannabis value-chain, is pleased to advise that, further to its release dated 12 March 2020, Harvest One Cannabis Inc. (“HVT” or “Harvest One”) (TSX-V: HVT; OTCQX: HRVOF) has issued 17,083,333 common share purchase warrants (the “Warrants”) to MMJ as consideration for agreeing to extend the maturity date of a secured loan agreement with MMJ for a loan in the amount of CAD2,000,000, issued on January 10, 2020 (the “Loan”).
MMJ is the largest shareholder holding 26%1 of HVT which is one of the largest investments within the MMJ cannabis and hemp portfolio.
MMJ’s investment in HVT comprises of:
- 55,557,994 HVT shares with a market value of approximately CAD5m2
- A CAD2m secured loan bearing interest of 15% per annum with a maturity date of 8 June 2020. HVT granted MMJ a security interest in all current and after acquired property of HVT and its subsidiaries, subject to certain permitted liens.
- 17,083,333 common share purchase warrants (the “Warrants”). Each Warrant will entitle the holder to purchase one common share in the capital of HVT at a price of CAD0.06 at any time until the earlier of:
- the date of the further extension or renewal of the Loan; and
- April 3, 2022.
Harvest One is a global cannabis company that develops and provides innovative lifestyle and wellness products to consumers and patients in regulated markets around the world.
A copy of the HVT announcement can be found here.
1 MMJ holds 55,557,994 HVT shares as at 4 April 2020
2 Based on closing TSXV price of CAD0.09 per share
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