MMJ Group to extend secured loan agreement with Harvest One
MMJ is Harvest One’s largest shareholder with a 26% stake and this is one of the largest investments within the MMJ cannabis and hemp portfolio.
() has reached an agreement to extend the maturity date of the secured loan agreement with
On January 10 MMJ advanced a loan bearing interest at a rate of 15% per annum with the principal and accrued interest on the loan payable in arrears within 60 days of the issue date, subject to certain exceptions.
Harvest One granted MMJ a security interest in all current and after-acquired property of HVT and its subsidiaries, subject to certain permitted liens.
Loan agreement terms
MMJ has agreed to modify the terms of the loan agreement:The maturity date of the loan has been extended by 90 days to June 8; and In consideration for the extension of the maturity date by 90 days, MMJ will receive, subject to approval by the TSV Venture Exchange, 17.08 million warrants exercisable at a price per HVT share of 6 cents at any time until the earlier of the date of an additional extension or renewal of the loan and two years.
MMJ believes that Harvest One is significantly undervalued given its substantial cultivation and Cannabis 2.0 assets and are working closely with Harvest One to realise that intrinsic value.
The extension of the maturity date will assist HVT to continue making significant progress in restructuring its operations and realising the sale of non-core assets.
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.
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