MMJPhytotech
HGV Makes Follow-on Investment In Weed Me Inc.
Hygrovest Limited (ASX: HGV) (“HGV”) is an Australian-listed specialist investment company which concentrates on producing capital growth for shareholders over the medium term from investments in listed and unlisted equities and debt securities.
HGV exercises right to convert CAD1m of its convertible note into shares in Weed Me Inc.
HGV has converted CAD1m of its unsecured convertible note into 598,802 Weed Me shares at the contracted conversion price of CAD1.67 per share. As at 31 March 2023 HGV had ascribed to Weed Me shares a valuation of CAD2.06 per share, making it attractive to convert at a material discount to that valuation.
HGV has also agreed to extend the maturity date of its remaining CAD1m unsecured convertible note from 29 April 2023 to 29 October 2023. The extension will allow Weed Me to bring forward the acquisition of plant and equipment designed to increase both productivity and sales.
Weed Me has also announced its maiden dividend to shareholders totalling CAD1m. HGV will receive a total dividend of around CAD0.1m.
“Weed Me is the best performing investment in HGV’s portfolio. HGV remains optimistic for future capital growth from its investment and is working with the company to maximise exit value with the option of realising a material portion of HGV’s investment during the next 12 months. HGV’s follow on investment in Weed Me and the extension of the remaining note’s maturity date will assist the further expansion of Weed Me’s sales and generate value for HGV”, said Mr Wall, HGV’s Chairman.