MMJ enters CAD2m secured loan agreement with 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 it has entered into a secured loan agreement (the “Loan Agreement”) with Harvest One Cannabis Inc. (“HVT”) (TSX-V: HVT; OTCQX: HRVOF) in the amount of CAD2m¹ (the “Loan”) issued on January 13, 2020 (the “Issue Date”). MMJ is the largest shareholder holding 26%² of HVT which is one of the largest investments within the MMJ cannabis and hemp portfolio.

The Loan bears interest at a rate of 15% per annum and the principal and accrued interest on the Loan is payable in arrears within 60 days of the Issue Date, subject to certain exceptions. Harvest One will grant MMJ a security interest in all current and after acquired property of HVT and its subsidiaries, subject to certain permitted liens. HVT will use the proceeds from the Loan for general corporate purposes.

“This short-term loan provides us with the flexibility needed to continue the implementation of our enhanced strategic plan while continuing to evaluate longer-term financing options,” said Grant Froese, CEO of Harvest One. “There is momentum across our business as we continue to focus on our strengths in brand development and distribution. We see significant opportunities for growth as we leverage our extensive brand portfolio as Cannabis 2.0 takes hold in Canada.”

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 is attached here with this ASX announcement.

1 CAD – Canadian dollars

2 MMJ holds 55,557,994 HVT shares as at 27 November 2019