MMJ Group Holdings

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Company Highlights

MMJ Group Holdings Ltd. is a premier publicly listed cannabis investment company based in Australia. The company leverages a diversified investment portfolio and favorable market conditions to create solid opportunities for highly calculated investment.
The company owns a portfolio of minority interests and seeks new investments across the full range of emerging cannabis-related sectors. The diverse portfolio offers investors exposure to a robust variety of listed and private cannabis-based companies.
Investment return in the past five years has generated a MOIC of 1.1 times the capital invested. This financial upside is amplified with the company's MOIC of 3.5 times on investments sold in that period including sales of Dosecann Inc. and Medipharm LABS.
MMJ has a proven track record in acquiring and realizing significant value from its cannabis and hemp-related investments. They combine years of professional experience in investment banking, corporate governance and strategic acquisition.
Harvest One Cannabis, MMJ's largest investment, saw a 116 percent increase in value totaling CAD$13.4 million in February 2021, presenting the company with exceptional growth potential.
The company has a strong management team and benefits from having the Canadian-based Parallax Ventures Inc. on its board as its asset manager.

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Overview

Cannabis markets across North America continue to demonstrate exceptional stable growth potential and economic value as a highly prospective space. Despite disruptions from COVID-19 to numerous industries, cannabis saw unprecedented growth across this breakout year.

In 2020, U.S. markets saw a record-breaking US$17.5 billion in adult-use and medical cannabis sales. This almost 46 percent increase from 2019 continues to impress analysts across the industry. With increased talks about extending legalization frameworks in emerging markets in the U.S. and worldwide, investing in the future of cannabis presents big-league potential.

MMJ Group Holdings Ltd. (ASX:MMJ, OTCMKTS:MMJJF, FRA:2P9) is an investment company focusing on international cannabis exposure. The company stands as the only listed investment company offering Australian investors the opportunity to invest in unlisted and listed cannabis-based businesses locally and offshore.

MMJ's portfolio management is focusing on creating a diversified portfolio of CBD and cannabis investments in cultivation, extraction and consumer products with material investments in Weed Me, WeedMD, Sequoya, Harvest One and Southern Cannabis Holdings.

MMJ is also able to make investments in sectors outside of cannabis, such as but not limited to, natural resources, pharmaceuticals and software services technology. Following completion of BCAC's acquisition of a US based wine business, Vintage Wines, MMJ has completed the first non-cannabis investment following the diversification of its investment strategy approved by MMJ shareholders in late 2020.

investingnews.com.au

MMJ operates a robust share purchase plan, which provides eligible shareholders the opportunity to invest in the portfolio at a 51 percent discount to net value assets. This attribute is exceptionally advantageous with the company's generation of substantial realized gains from its sale of Dosecann Inc. and Medipharm LABS, two Canadian cannabis-based companies providing leading cannabis technologies in extraction and product development.

A significant goal for MMJ's Board includes trading its share price at a premium to NAV, considering prospective returns from its high-quality portfolio companies. The company has seen positive trends in investment returns in the past five years and has generated a Multiple on Invested Capital (MOIC) of 1.3 times capital invested. Its mixture of private and listed companies across the emerging Australian and offshore cannabis and hemp markets primes the company for dominant standing as a major investment company.

investingnews.com.au

Its highly-developed investment process includes active formulating, frequent reviewing, and effective investment best practices based on reliable valuation information. The MMJ Board operates as the final approval level for acquisition and the sale of investment proposals, which involve an exercise of rights attached to specific investments. Its current investment approval process operates based on MMJ's Investment Management Agreement with Parallax Ventures Inc, effective from 1 June 1 2019.

Future plans for the company involve focusing on U.S. investment expansion, employing liquidity into Canadian markets and developing its brands and distribution chains. The company notes significant attention towards its Harvest One Cannabis (CVE:HVT) investee, which saw a 116 percent increase in value during February 2021, reaching totals of CAD$13.4 million.

investingnews.com.au

" You can see with Harvest One, which is our largest investment, has a massive distribution network and has very high-quality plans coming along. We believe those types of investments in the long-term will be exceptionally attractive," commented MMJ Non Executive Director Michael Curtis.

MMJ Group Holdings Ltd. comprises a strong team with over 80 years of combined experience in investment banking, corporate strategy and cannabis fields. The company also benefits from having the Canadian-based Parallax Ventures Inc. on its Board as a strategic asset manager. Together, this leadership primes MMJ for significant success and growth with strategies to enhance acceleration and collaboration within the portfolio.

Company Highlights

MMJ Group Holdings Ltd. is a premier publicly listed cannabis investment company based in Australia. The company leverages a diversified investment portfolio and favorable market conditions to create solid opportunities for highly calculated investment.
The company owns a portfolio of minority interests and seeks new investments across the full range of emerging cannabis-related sectors. The diverse portfolio offers investors exposure to a robust variety of listed and private cannabis-based companies.
Investment return in the past five years has generated a MOIC of 1.1 times the capital invested. This financial upside is amplified with the company's MOIC of 3.5 times on investments sold in that period including sales of Dosecann Inc. and Medipharm LABS.
MMJ has a proven track record in acquiring and realizing significant value from its cannabis and hemp-related investments. They combine years of professional experience in investment banking, corporate governance and strategic acquisition.
Harvest One Cannabis, MMJ's largest investment, saw a 116 percent increase in value totaling CAD$13.4 million in February 2021, presenting the company with exceptional growth potential.
The company has a strong management team and benefits from having the Canadian-based Parallax Ventures Inc. on its board as its asset manager.

MMJ Group Holdings Ltd. operates a robust investment portfolio consisting of listed and private cannabis companies across a diverse variety of emerging cannabis-related sectors, including healthcare, technology, infrastructure, logistics, processing, cultivation, equipment and retail.

Current investment in its portfolio include:

Harvest One Cannabis Inc. (CVE:HVT)
Southern Cannabis Holdings
Weed Me
Martha Jane Medical
Vitagenne
Sequoya
WeedMD Rx Inc. (CVE:WMD)
Bespoke Capital Acquisition Corp.

MMJ 's portfolio of investments sold:

BevCanna Enterprises Inc. (CNSX:BEV)
Fire & Flower (TSE:FAF)
MediPharm LABS (TSE:LABS)
Hemple
Axiomm Technologies
Volero Brands Inc.

This portfolio leverages favorable market conditions with the majority of Canadian listed license producer valuations seen dropping in 2020. MMJ intends to take advantage of this market backdrop and continue to create substantial investment opportunities, strategic partnerships and high-quality acquisitions.

Management Team

Peter Wall — Non-Executive Chairman

Peter Wall is a corporate lawyer and has been a partner at Steinepreis Paganin, a Perth-based corporate law firm, since July 2005. He has a wide range of experience in all forms of commercial and corporate law, with a particular focus on medical cannabis, resources, equity capital markets and mergers and acquisitions. He also has significant experience in dealing with cross-border transactions.

Wall graduated from the University of Western Australia in 1998 with a Bachelor of Laws and Bachelor of Commerce (Finance). He has also completed a Masters of Applied Finance and Investment with FINSIA.

Winton Willesee — Non-Executive Director

Winton Willesee is an experienced company director and brings a broad range of skills and experience in strategy, company development, corporate governance, company public listings, merger and acquisition transactions and corporate finance. He has considerable experience with ASX listed and other companies over a broad range of industries, having been involved with many successful ventures from early-stage through to large capital development projects.

Willesee holds formal qualifications in economics, finance, accounting, education and governance. He is a fellow of the Financial Services Institute of Australasia, a graduate of the Australian Institute of Company Directors, a member of CPA Australia and a fellow of the Governance Institute of Australia/Chartered Secretary.

Doug Halley — Non-Executive Director

Doug Halley is an experienced company director and has served for 30 years as CFO or CEO in several significant and successful commercial enterprises and investment banks. His executive experience had a heavy emphasis on corporate strategy, treasury, financial management, M&A and business development. As a professional director, Halley has developed risk management and governance expertise. He has a strong background in IPO and start-ups and a reputation for innovation, perseverance and achieving solutions and results.

Halley has a Bachelor of Commerce, Master of Business Administration and is a fellow of the Australian Institute of Company Directors.

Michael Curtis — Non-Executive Director

Michael Curtis resides in Toronto, Canada and is an experienced former investment banker and private equity executive. He is an active cannabis sector executive, having recently served as VP of Corporate Finance of Dosecann Inc. and Managing Partner of Parallax Ventures Inc. Curtis was previously the COO and Director of Embark Health Inc. and remains a consultant to Embark Health Inc.

Curtis has a Master of Business Administration from the University of New Brunswick, Bachelor of Sciences (Honors) from McMaster University.

Jim Hallam — CFO & Corporate Secretary

Jim Hallam has over 30 years of experience in the investment management industry with alternative asset fund managers in Australia and overseas, including Hastings Funds Management and Annuity Australia. His roles include acting as responsible manager, investment manager and Chief Financial Officer within alternative asset fund managers.

Hallam has a Bachelor of Commerce in Economics, is a member of the Chartered Accountants Australia and New Zealand and a fellow of the Governance Institute of Australia.

MMJ Group Holdings

Company Highlights