The company advanced an initial C$350,00 on April 16 to Sequoya under this convertible note facility.
Following receipt of the initial advance, Sequoya’s Polish subsidiary, Sequoya Europe, is expected to begin production of CBD extracts and isolate in April 2020 at its European Union (EU) GMP Certified production facility.
MMJ secured this additional investment opportunity by exercising a right to invest up to a further C$2.5 million in Sequoya to finance the company’s business plan.
The initial advance was funded from the proceeds of the MMJ share purchase plan (SPP) completed on March 24.
Towards GMP-certified hemp CBD supplier
The Sequoya facility is built from the ground up with the strictest production, quality and safety standards, allowing quick and smooth certification of the entire facility.
It marks the only completely end-to-end EU GMP Certified hemp extraction facility in Europe.
As an end-to-end facility, it includes a modern, fully equipped analysis and quality control area, staffed with senior R&D and quality specialists ensuring tight control over producing consistent and highest quality results.
With few regulatory hurdles around CBD in Europe, Sequoya is receiving interest from consumer goods manufacturers namely from cosmetics, food, beverage and nutraceutical companies.
Following the financial backing of MMJ, Sequoya is now able to move to the next step to become a significant GMP-certified hemp CBD supplier, with longer-term plans to expand into the legal medicinal marijuana market across Europe.
‘Excellent’ investment returns
MMJ expects its investment in Sequoya to provide ‘excellent’ investment returns:
- Sequoya is focusing on extraction, which is the highest value opportunity within the cannabis ecosystem, and has built a large-scale production plant in a low-cost jurisdiction which has easy no-tariff access to high-value markets such as Germany and Northern Europe;
- As the industry evolves, the ability to produce GMP certified product at a lower cost in Europe will be a strategic advantage for Sequoya; and
- Poland also provides access to world-class technicians and engineers at a substantially lower cost than available elsewhere, some of whom are already working with Sequoya.