MMJ PhytoTech Limited (ASX:MMJ) has announced it is in the final stages of subscribing to C$2 million in secured convertible debentures in Toronto based Weed Me Inc.
Established in 2016, Weed Me is targeting entry into the estimated C$8 Canadian medical and recreational cannabis market in 2018 as a high-quality, large-scale cannabis producer.
Under the finalised investment, MMJ was able to secure a reduction in the pre-money valuation of the business, from C$10 million to C$9.2.
This latest investment adds to MMJ’s Canadian cannabis portfolio, with the business already holding a 59 per cent stake in Harvest One Cannabis.
Shares in MMJ PhytoTech Limited (ASX:MMJ) are trading 3.57 per cent higher this morning at $0.43.