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:

1. 55,557,994 HVT shares with a market value of approximately CAD5m²
2. 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.
3. 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:
   1. the date of the further extension or renewal of the Loan; and
   2. 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