MMJ subsidiaries: United Greeneries and Satipharm to list on TSX-V
Published 28-SEP-2016 13:42 P.M.
|
2 minute read
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
Subsidiary divisions of medical cannabis company MMJ PhytoTech Limited (ASX:MMJ); United Greeneries Holdings Ltd and Satipharm AG, plans to list on the Canadian TSX-V exchange.
A binding term sheet has been signed between MMJ and the TSX-V listed company Top Strike Resources Limited (TSX-V:TSR), for Top Strike to acquire 100% of the issues shares in United Greeneries and Satipharm.
The planned reverse takeover remains subject to shareholder approval, due diligence and completion of the financing and execution of a definitive agreement.
MMJ shareholders will gain exposure to the rapidly growing recreational and medical cannabis markets in Canada.
Following the spin out, shareholders in MMJ will have indirect ownership in the fully-financed brands United Greeneries and Satipharm, whilst also gaining exposure to the Canadian market.
The aggregated sale price of United Greeneries and Satipharm (C$40 million) which represents approximately 97% of MMJ’s current market capitalisation at a share price of $0.24.
Since July 2016 MMJ share price is down 6% whilst peers are up 175% on average:
The listing of MMJ’s subsidiaries on the TSX-V exposes the brands to Canada’s capital markets that have seen over $200M raised since March 1st, 2016 by MMJ’s peers.
The Canadian cannabis market is one of the most highly regulated and favourable operating jurisdictions in the world. Of the 34 approved companies operating under the current regulatory conditions, only 10 are publicly listed in Canada.
The medical cannabis market in Canada is expected to grow to C$3 billion in in annual sales by 2024. An average of 5,000 new patients are treated with medicinal cannabis each month, with a total 75,000 patients currently enrolled.
The Canadian recreational market has a conservative estimate value of around C$5 billion per annum.
With the Canadian government committed to introduce new regulation surrounding recreational use of cannabis, MMJ’s subsidiaries may benefit from first mover advantage.
There is no guarantee these laws will be passed or will translate into commercial revenues for MMJ and its subsidiaries so please conduct your own due diligence and seek professional financial advice before making any investment decision.
MMJ expects the reverse takeover transaction to be finalised and listed on the TSX-V before the end of December 2016.
General Information Only
S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.
