Australia

MMJ Group enters $2 million loan agreement with Harvest One

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MMJ Group Holdings Ltd (ASX:MMJ) has entered into a secured loan agreement with its Canadian investment Harvest One Cannabis Inc (CVE:HVT) for a value of C$2 million issued on January 13, 2020.

MMJ is the largest shareholder with 26% of Harvest One, which is one of the largest investments within the MMJ cannabis and hemp portfolio.

The loan to HVT bears interest at a rate of 15% per annum and the principal and accrued interest on the loan is payable in arrears within 60 days of the issue date, subject to certain exceptions.

Harvest One is set to grant MMJ a security interest in all current and after-acquired property of HVT and its subsidiaries.

HVT will use the proceeds from the loan for general corporate purposes.

“Strengths in brand development and distribution”

Harvest One chief executive officer Grant Froese said: “This short-term loan provides us with the flexibility needed to continue the implementation of our strategic plan while continuing to evaluate longer-term financing options.

“There is momentum across our business as we continue to focus on our strengths in brand development and distribution.

“We see significant opportunities for growth as we leverage our extensive brand portRead More – Source