By MMJ Group Holdings Ltd on Tuesday, 20 November 2018
Category: Investment Company

MMJ Group Holdings completes sale of unit to Harvest One Cannabis for C$8 million

The Australian company sold PhytoTech Therapeutics to the Canadian cannabis supplier for C$1 million in cash and 8,326,695 ordinary shares

The number of shares issued in the deal between cannabis companies Harvest One and MMJ was based on the buyer's 10-day volume-weighted average price as of October 11

Cannabis company MMJ Group Holdings Ltd (ASX:MMJ, OTCMKTS:MMJJF) said Tuesday that it completed the sale of PhytoTech Therapeutics Ltd to (CVE:HVT, OTCMKTS:HRVOF) for C$8 million in cash and stock.

Under the deal, Vancouver-based Harvest One paid C$1 million in cash and issued 8,326,695 ordinary shares to Sydney-based MMJ.

READ: Valens GroWorks signs cannabis supply deal with Harvest One Cannabis

The number of shares, according to MMJ was calculated based on the 10-day volume weighted average price as of October 11, which was C$0.84067.

Yissum Research Development Company of the Hebrew University of Jerusalem Ltd received C$20,000 in cash and 166,534 of the shares. MMJ retained the balance of C$980,000 in cash and 8,160,161 shares.

Shares of Harvest One slipped US$0.01 to $0.36 in Monday’s OTC market trading and were unchanged at C$0.48 in Canada. The OTC shares of MMJ were down less than US$0.01 at $0.20 on Monday.

Last week Harvest One said Valens GroWorks Corp (CSE:VGW, OTCQB:MYMSF) had agreed to buy bulk quantities of dried cannabis from the supplier.

Contact Dennis Fitzgerald at [email protected]

 

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