Though MMJ Phytotech Limited [ASX:MMJ]’s share price has been pretty stagnant recently, its media attention hasn’t wavered.
Previously, two separate companies — MMJ and Phytotech — merged in 2015; aligning strategies and asset portfolios were an impetus for the marriage.
As a global cannabis investment company, Phytotech Therapeutics focused on developing and commercialising cannabis-based therapeutic products alongside research and development.
But with Canada to legalisation of recreational cannabis set to occur in only a few months’ time, MMJ is eager to secure the entire cannabis chain.
MMJ’s plan of attack…through investment
Setting the Phytotech business aside for the time being, MMJ is now focusing their efforts into:
‘Actively managing a portfolio of minority investments…which is expected to generate synergies and growth opportunities that could not be captured by PTL [Phytotech] as a standalone research & development company.’
They want to be part (and have a part) in every step of the process.
MMJ has secured shareholdings in multiple cannabis-related entities. These include Weed Me Inc (a cultivation company), and Fire & Flower Inc (a cannabis retail store chain).
A little closer to home is their holdings in a leading online portal for medical cannabis in Australia. They also have holdings in companies seeking to broaden the licencing of cannabis across Aussie soil.
But that’s not even the best part…
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On 2 July, MMJ announced on the ASX that Phytotech Therapeutics invested CA$5 million for 6.9% basic shareholding in MediPharm Labs Inc.
MediPharm owns Canada’s largest medicinal cannabis oil production facility, processing over 100,000kg of dry cannabis each year. They’re an Access to Cannabis for Medical Purposes Regulations Licensed Producer and expect a sales licence once recreational cannabis is officially legalised.
That’s a smart play by MMJ.
They also have comfortable holdings in Canada’s cannabis supply chain, obtaining over a third of the shares of Harvest One Cannabis Inc. This company’s shareholders ‘have significant exposure to the entire cannabis value chain’.
Today, MMJ released an announcement regarding the appointment of a new CEO for Harvest One. Grant Froese has worked in information technology, supply chain, ecommerce businesses and marketing. He is sure to become a valuable asset to the Harvest One team.
It’s slow progress at the moment for MMJ, but there are a heap of signs pointing toward major future potential.
They plan to rename the company to MMJ Group Holdings to reflect their new goal of banking on the entire cannabis economy.
For Money Morning
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