MMJPhytotech
MMJ Group invests USD1m in Brainworks Inc.
MMJ Group Holdings Limited (ASX: MMJ) (“MMJ”) is an Australian-listed specialist investment company which offers the opportunity to invest in a globally diversified portfolio holding investments in private (typically pre-IPO) and public companies in high growth industries. MMJ’s current investments are largely minority holdings in Australian and offshore cannabis-related businesses with investments being added in other high growth industries such as but not limited to natural resources, healthcare and software services technology.
MMJ invests USD1m in Brainworks Foundry Inc.
MMJ has completed an investment of USD1m in unlisted Brainworks Foundry Inc. (“Brainworks”). MMJ’s investment was part of a total pre-IPO equity financing of USD3.7m to fund the expansion of its Medio Labs laboratory testing operations in the United States of America. The investment was made from MMJ’s existing cash reserves.
Brainworks is an integrated digital health and pathology company operating in the United States. Medio Labs is a commercial laboratory testing service operated by Brainworks. Medio Labs has designed a best in-breed, highly scalable polymerase chain reaction (“PCR”) testing process, using DNA barcoding, which significantly reduces the cost and turnaround time of next-generation gene-sequencer analysis for COVID-19 samples. This testing process was first deployed for COVID-19 PCR testing in October 2020 after receiving an Emergency Use Approval from the U.S. FDA.
Brainworks will use the proceeds from the offer to establish their first larger-scale gene sequencing pathology lab in Alameda, California. This will allow Brainworks to service up to 150 markets across the US and provide end-to-end gold-standard PCR COVID testing in under 24 hours. Results will be delivered via the secure Brainworks digital health platform.
“The investment in Brainworks demonstrates MMJ’s expertise to secure a private negotiated investment in unlisted businesses which are not generally available to Australian retail and institutional investors, Mr. Wall said. Brainworks represents continued deployment of funds in accordance with its investment strategy following the broadening of MMJ’s investment mandate in 2020.”
MMJ’s investment in Brainworks has an acquisition cost of USD1m and comprises 1,234,568 shares representing approximately 7% of Brainworks’ issued capital on completion of the Brainworks USD3.7m capital raising.