Weed Me Investor Update

MMJ Group Holdings Limited (ASX:MMJ/OTC Code MMJJF) (“MMJ”), an Australian-listed company that specialises in managing a portfolio of investments along the cannabis value-chain, attaches the following presentation by one of MMJ’s largest investees, Weed Me Inc. (“Weed Me”), in relation to its operations.

The Weed Me presentation provides an update on its current operations and the expansion opportunities that are being considered by the company. The presentation follows the announcement of a CAD2.5m capital raising in March 2020 which strengthened Weed Me’s balance sheet to support its growth plans.

Established in 2016, Weed Me is a licenced producer of cannabis with indoor growing facilities located in Ontario and holds Cultivation, Processing and Sales licences under the Cannabis Act from Health Canada. MMJ made its initial investment in Weed Me in December 2017.

MMJ’s investment in Weed Me has a current book value of CAD5.8m and comprises:

1. 3.46m shares (book value of CAD3.5m) representing approximately 14% of Weed Me’s issued capital and 3.46m warrants each convertible at CAD0.8666 (book value of CAD1.3m); and
2. CAD1m convertible note (“the Note”) with a first ranking charge, bears interest at a rate of 8% per annum and is repayable on 7 August 2020. The Note is convertible at MMJ’s option up to 7 August 2020 into 0.666m Weed Me shares and 0.666m warrants which entitle MMJ to acquire one share at an exercise price of CAD1.60 up to 7 August 2021.
3. As at 31 March 2020, MMJ had generated a total return of 2.2 times on its investment in Weed Me¹.

The presentation can be found here.

¹ Based on unrealised market value of investment plus interest received/receivable divided by cash cost of investment