viewMMJ Group Holdings Ltd

MMJ Group investee Harvest One enters C$8.2 million divestment agreement

Harvest One is a global cannabis company that develops and provides lifestyle and wellness products to consumers and patients in regulated markets around the world.

MMJ Group Holdings Ltd -  MMJ Group Holdings investee Harvest One enters into CAD$8.2 million acquisition agreement
MMJ is the largest shareholder with around 26% of Harvest One

MMJ Group Holdings Ltd (ASX:MMJ) Canadian investee Harvest One Cannabis Inc (CVE:HVT) (OTCMKTS:HRVOF) has entered into an agreement to sell its United Greeneries cannabis cultivation and processing business to Costa Canna Production Ltd Liability Partnership for C$8.2 million.

Sale of the business in Duncan, British Columbia, and its related operations confirms Harvest One’s strategic transition to a cannabis-focused Consumer Packaged Goods (CPG) company.

The Canadian company will retain all assets and intellectual property associated with its Cannabis 2.0 product portfolio including, the company’s LivReliefTM cannabis-infused topicals currently on sale in British Columbia, Alberta, Saskatchewan, Manitoba and Ontario.

Harvest One chief executive officer Andrew Bayfield said: “The agreement to sell our Duncan Facility and its related operations represents a strategic step forward for Harvest One, further divesting from its capital intensive cultivation activities and firmly establishing ourselves as a cannabis-focused CPG company.

“We will continue to focus on expanding our core brands of LivRelief™, Dream Water™ and Satipharm together with the commercialisation of Cannabis 2.0 product offerings in Canada.”

Bridge financing facility

In addition, Harvest One has secured a C$1.5 million bridge financing facility from Costa LLP, which will be made available to the company upon signing the agreement.

It is the intention of the parties that this bridge facility will mature and be repaid in full upon the closing of the transaction.

In order to facilitate the availability of this facility, MMJ has agreed to subordinate its security interest in the Duncan Facility, to Costa LLP.

MMJ’s C$2 million loan facility will be repaid from the settlement of the Duncan Facility.

Quick facts: MMJ Group Holdings Ltd

Price: 0.09 AUD

Market: ASX
Market Cap: $20.7 m

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of MMJ Group Holdings Ltd named herein, including the promotion by the Company of MMJ Group Holdings Ltd in any Content on the Site, the Company...


Full interview: MMJ Group sees strong future for cannabis sector amid global...

MMJ Group (ASX: MMJ) Non-Executive Director Michael Curtis joined Steve Darling from Proactive Vancouver to discuss his thoughts on the cannabis industry and how that sector is doing during the Corona outbreak. Cannabis stores were deemed an essential service. Curtis also talked about how...

on 13/5/20

2 min read