MMJ (ASX: MMJ) has pleased its shareholders this morning by announcing that subsidiary cannabis company Harvest One had signed an MoU with the British Columbia Liquor Distribution Board (BC LDB) for the supply of recreational cannabis.
Harvest One is to acquire PhytoTech Therapeutics from MMJ, subject to MMJ shareholder approval later this year. The company operates three distinct business units: United Greeneries, Satipharm and Dream Water and is solely focused on servicing both the medical and recreational cannabis markets, in Canada and internationally.
Harvest One offers significant exposure to the entire cannabis value chain through three wholly owned operating subsidiaries: horticultural arm and Canadian Licensed Producer United Greeneries Ltd., medical and pharmaceutical arm Satipharm AG in Switzerland and Dream Water Global, the Group’s consumer goods division.
Each business is strategically located in favourable jurisdictions with supportive regulatory frameworks in place and gearing up for legal recreational cannabis in Canada, to be finalised in the foreseeable future.
For MMJ, the name of the game has been to establish a diversified portfolio by investing in a wide range of emerging cannabis-related sectors including healthcare products, technology, infrastructure, logistics, processing, cultivation, equipment, R&D and retail.
MMJ has been on an acquisition spree so far this year, picking up several companies focused on marketing and commercialising medical cannabis and health food brands.
Standing ready for recreational cannabis market
United Greeneries has a Canadian ACMPR cultivation and sales license, making Harvest One one of only a few companies globally with the capacity to commercially cultivate and sell medicinal grade cannabis in a federally regulated environment.
The MoU deal means that Harvest One will be able to supply their home province with the high-quality BC grown cannabis for which United Greeneries is known. According to Harvest One, it has also entered negotiations with other provincial distributors and private retailers across the country.
“We look forward to partnering with the BC LDB and this agreement is an important step in establishing Harvest One’s house of brands in the newly created recreational market,” said Grant Froese, CEO of Harvest One.
“We are excited to bring our craft cannabis products to British Columbia’s consumers and we look forward to delivering to our customers a premium cannabis experience,” said Mr Froese.