Perth, Mar 1, 2017 - (ABN Newswire) - The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the ‘consolidated entity’) consisting of MMJ PhytoTech Limited (referred to hereafter as the ‘company’ or ‘parent entity’) (ASX:MMJ) and the entities it controlled at the end of, or during, the half-year ended 31 December 2016.
Principal activities
During the financial half-year the principal continuing activities of the consolidated entity consisted of:
- Commencement of cannabis cultivation at the Company’s MMPR licensed Duncan Facility in Canada;
- Production and distribution of cannabinoid-based food supplements throughout Europe; and
- Ongoing research and development of delivery technologies for the effective administration of cannabinoids.
Review of operations
The Company is pleased to provide the following summary of the key operational milestones achieved by the Group, in what was a transformational period for MMJ PhytoTech Limited (“MMJ” or “the Company”). Highlights for the six-month period ended 31 December 2016 include:
- Commencement of cannabis cultivation at the Group’s world-class Duncan Facility, with first cannabis harvest expected in Q1 2017;
- A superior acquisition proposal received from Harvest One Capital Inc. (CVE:WON.H) (“Harvest One”) to acquire United Greeneries Holdings Ltd (“UG”) and Satipharm AG (“Satipharm”);
- Harvest One proposal includes total consideration for UG and Satipharm assets of C$42 million in comparison to C$40 million outlined in the prior proposal;
- Post period end, Harvest One completed a C$25 million equity raising to finalise the acquisition of UG and Satipharm;
- Entered into a strategic option agreement to lease a 13-acre land package located directly adjacent to its existing Duncan Facility;
- Phase 2 Clinical Trial of PTL101 capsules to measure efficacy for reducing seizures in children with refractory epilepsy underway; and
- Post period end, a binding Letter of Intent entered with HL Pharma Pty Ltd (“HL Pharma”) for the importation and distribution of MMJ’s medicinal cannabis products in Australia.
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About: MMJ PhytoTech Ltd
MMJ PhytoTech Limited (ASX:MMJ) is focused on becoming a large-scale cannabis producer, targeting direct supply to the growing Canadian medical and recreational markets which will have an estimated combined value of C$8-9 billion by 2024. The Company controls operations across the entire medicinal cannabis value chain through three business units, strategically located in favourable jurisdictions with supportive regulatory frameworks in place.
MMJ has signed a definitive agreement with Canadian-based Harvest One Capital Corp. (CVE:WON.H) for the sale to Harvest One of 100% of the issued shares of United Greeneries Holdings Ltd and Satipharm AG.
United Greeneries Holding Ltd. has established world-class growing facilities in Canada, including the fully licensed Duncan Facility. MMJ is the first Australian-based company to receive a Canadian medicinal cannabis cultivation licence, and one of only a few companies globally with the capacity to commercially cultivate medicinal grade cannabis in a federally regulated environment.
The Company’s Swiss-based, medicinal products division operates under its 100% owned subsidiary, Satipharm AG, and is currently focused on developing regulatory compliant, unique oral delivery technologies that have the potential to deliver safe, effective and measured doses of medicinal cannabis to patients. MMJ began production of its first capsule product in May 2015, and is committed to providing novel treatment options throughout regulated markets globally.
PhytoTech Therapeutics Ltd is MMJ’s Israel-based subsidiary responsible for the clinical research and development activities. In March 2016, PhytoTech Therapeutics completed a phase 1 clinical study which highlighted the safety and performance of Satipharm’s capsule formulations in delivering CBD compounds to trial subjects.
