Embark Health & Volero Brands Announce a Co-Production Agreement
MMJ Group Holdings Limited (ASX:MMJ) (“MMJ”), is an Australian-listed company that specialises in managing a portfolio of investments along the cannabis value-chain in Australia, Canada and Europe.
Embark Health Update
In the attached release Embark Health Inc. (“Embark” or the “Company”) and Volero Brands Inc. (“Volero”) announced that they have entered into a definitive agreement (the “Co-Production Agreement”) to develop, produce, and distribute Volero’s Flyte cannabis 2.0 products for the Canadian market.
MMJ has minority holdings in both Embark and Volero (refer below).
MMJ’s investments in Embark Health and Volero demonstrate some of the benefits provided to MMJ shareholders from its investments in early stage unlisted investments in the medicinal and adult use cannabis sector with the prospect of realising potential gains on listing the public markets.
Further detail on the operations of Embark Health and Volero may be found on the MMJ website www.mmjgh.com.au/portfolio/.
MMJ’s investment in Embark Health
MMJ was a foundation investor in Embark Health in July 2018 – the investment now comprises:
- 3.425m ordinary shares (approximately 12.7% shareholding) in Embark Health with a book value of CAD2.40 per share.
- Warrants that provide the option for MMJ to acquire a further 1.0m shares at CAD1.75 each up with maturity date of two years after a Liquidity Event1.
- Warrants that provide the option for MMJ to acquire a further 1.2m shares at CAD1.202 each up with maturity date of two years after a Liquidity Event.
- Warrants that provide the option for MMJ to acquire a further 1.125m shares at CAD4.80 each up with maturity date of two years after a Liquidity Event.
- MMJ had generated a total return3 of 2 times on its investment.
MMJ’s investment in Volero
MMJ was a foundation investor in 2019 – the investment now comprises:
- 5m ordinary shares (approximately 7% shareholding) carried at book value of CAD0.38 per share.
- Warrants that provide the option for MMJ to acquire a further 2.5m shares at CAD0.65 each up with maturity date of 17 May 2022.
Read the full ASX Release here.
1 A Liquidity event is an initial public offering or a material sale event
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2 Exercise price has based on MMJ book value of CAD2.40 per share
3 The return comprises all cash income, sale proceeds, accrued income and fair value of investment at date of calculation