Chapmans completes strategic investment in medical cannabis group, MJ Life Sciences

Published 25-SEP-2017 14:04 P.M.


3 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

Diversified investment group, Chapmans Limited (ASX:CHP), has today announced the company’s successful completion of its strategic investment in MJ Life Sciences (MJLS).

MJLS is an Australian special-purpose company established with the aim of becoming a leading global medicinal cannabis holding and investment company.

It is also a direct investor in Caziwell Inc., owner of the established North American medicinal cannabis brand and business, Aunt Zelda’s, with convertible note rights of up to 49.99% in Caziwell Inc.

Prior to CHP’s investment, MJLS had been founded and owned by three of the leading names in the burgeoning Australian and global medicinal cannabis space: Harry Karelis, Jason Peterson and Dr Stewart Washer, founders and/or directors of Auscann Group Holdings Limited (ASX:AC8), Zelda Therapeutics Limited (ASX:ZLD), CannPal Animal Therapeutics Ltd, and specialist cannabis medical clinic operator, CliniCann Ltd.

Between them, these major players have expansive regulatory, technical, operational and transactional experience in the industry.

CHP’s opportunity to invest directly in MJLS is highly advantageous, as well as consistent with its strong conviction and capital growth investment philosophy, enabling direct exposure to its future investments in the rapidly growing global medicinal cannabis landscape.

This company is in early stages of development and remains a speculative investment option, so investors should seek professional financial advice if considering this stock for their portfolio.

The investment also represents a significant value accretive transaction for CHP, paving the way for a strategic long-term partnership with MJLS.

Under the terms and conditions of the investment:

  • Chapmans has invested AUD 631,313 (reflecting the AUD equivalent of USD 500,00 in exchange for a 50% equity holding in MJLS; and
  • Chapmans has the right to equal board representation to the existing MJLS shareholders and will control 50% of the board with the existing MJLS shareholders collectively controlling the remaining 50% of the board

The MJLS investment has been funded from the proceeds from the placement announced by the company last week and existing capital.

MJLS’s board of directors will be reviewing its investment strategy and focus, with a view to securing additional medicinal cannabis opportunities in the near term ahead of a potential ASX listing in 2018.

CHP executive chairman, Peter Dykes, said: “Chapmans shares common investment principals and goals with MJLS and is delighted to be working with such experienced medicinal cannabis industry experts seeking to capitalise on clear and compelling growth market opportunities.”

Similarly, Harry Karelis, executive chairman of Zelda Therapeutics and executive director of Auscann, said: “MJLS welcomes the opportunity to join forces with Chapmans with whom we have clear alignment in investment approach and objectives. We are delighted to have completed this initial investment as scheduled and now look forward to immediately progressing to secure further compelling and unique investment opportunities in the burgeoning medicinal cannabis industry.”

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.


Discover Small Cap
Biotech Stocks

Join thousands of other Investors following our stock commentary for Free