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, in Australia, Canada, and Europe.
MMJ’s investment in Harvest One – Loan Agreement
MMJ is pleased to advise that, in continued support of Harvest One Cannabis Inc.’s (“HVT” or “Harvest One”) (TSX-V: HVT; OTCQX: HRVOF) previously-announced strategic review initiatives, MMJ has entered into an agreement with HVT pursuant to which MMJ has agreed to defer the repayment of its secured loan to HVT in the amount of CAD2.0 million (the “Loan”), until the earlier of: (i) 31 August 2020; and (ii) the closing or termination of the sale by HVT of its United Greeneries’ licensed cannabis cultivation and processing businesses located in Duncan, British Columbia, to Costa Canna Production Limited Liability Partnership (“Costa LLP”) and 626875 B.C. Ltd. (the “Transaction”).
A copy of the HVT announcement can be found here.
MMJ’s investment in HVT
MMJ is the largest shareholder holding approximately 26% 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 common shares of HVT (the “Common Shares”) with a market value of approximately CAD5.0 million.
- A CAD2.0 million secured loan bearing interest of 15% per annum with a maturity date of June 8 with a deferred repayment date of the earlier of: (i) 31 August 2020; and (ii) the closing or termination of the Transaction. HVT granted MMJ a security interest in all current and after acquired property of HVT and its subsidiaries, subject to certain permitted liens and the subordination of MMJ’s security interest in certain assets to be sold to Costa LLP.
- 17,083,333 Common Share purchase warrants (the “Warrants”). Each Warrant entitles the holder to purchase one Common Share 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.
Read the full ASX Release here
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