MMJ Phytotech Limited (ASX: MMJ) is a medical cannabis company, which aims to commercialise medical cannabis and high value cannabis-based therapeutics to the rapidly growing international market with regulated medical cannabis laws.
Perth-based MMJ PhytoTech Limited (ASX: MMJ) is focused on becoming a leading, large-scale cannabis producer, targeting direct supply to the growing Canadian medical and recreational markets which will have an estimated combined value of C$8-9 billion by 2024. MMJ holds one of only 52 licences (at August 2017) issued by Health Canada, allowing for the production of medical cannabis. MMJ expects to be well positioned as a first mover in this emerging recreational market in the near-term.
MMJ controls operations across the entire medicinal cannabis value chain through three business units, strategically located in favourable jurisdictions with supportive regulatory frameworks in place.
In December 2016 MMJ signed a definitive agreement with Canadian-based Harvest One Capital Corp for the sale to Harvest One of 100% of the issued shares of United Greeneries Holdings Ltd and Satipharm AG respectively.
MMJ and Harvest One have received significant support from the Canadian investment community to date, with a CAD$25 million placement (33,334,000 Subscription Receipts at a price of C$0.75) completed in February 2017. Harvest One Cannabis Inc. ("Harvest One Cannabis") (TSX-V: HVST) was approved as a Tier 1 Industrial or Life Science Issuer, with HVST Common Shares trading from 28 April 2017.
MMJ has a 60% ownership in Harvest One Cannabis - a fully-financed company with two strategic cannabis brands operating in one of the fastest growing cannabis markets globally.
Completion of the transaction leaves MMJ in a strong financial position with circa A$8.3mil cash. These funds are intended to be applied towards the ongoing clinical trial programs in Israel, working capital and pursuit of new opportunities in the medical cannabis sector.