The portfolio had three listed investments valued at $49.5 million, nine unlisted investments valued at $19.4 million, and $26.6 million in cash and other investment receivables.
The $99.5 million portfolio equates to a net tangible asset value per share before tax of 38.74 cents.
MMJ’s investments sit across most of the cannabis and hemp value chain with a focus on potential market leaders, consolidators, and takeover targets.
BevCanna becomes public company in July 2019
Notably, one of the unlisted investments, BevCanna went public on the Canadian Stock Exchange on 2 July under the ticker BEV.
A number of the portfolio’s remaining private companies are in the market seeking additional funding to continue accelerating their businesses.
In early June 2019, MMJ revealed a share buy-back and updated the market on its dividend policy.
The company plans to buy-back up to 10 million shares on-market over the next 12 months as part of its active approach to capital management.
Given the discount the shares are trading to NTA, the board have determined that an on-market buyback of MMJ shares is a meaningful value accretive use of its funds.
Regarding the dividend policy, MMJ intends to distribute 20% of its annual profit after tax excluding unrealised gains and losses on investments from FY20 onwards.
The dividend would be payable within three months of each half year after the completion of the half year and annual financial statements.
It is MMJ’s intention that the dividend would benefit from available franking credits held by the company.
Goal is to trade at a premium to NAV
MMJ will hold a general meeting on this week on July 19 seeking approval for the appointment of Embark Ventures as the manager of its investments.
The MMJ board believes the company should centre its asset management resource in Canada to better manage the existing portfolio and provide access to new investment opportunities in North America.
A major goal that aims to be achieved in this transition is for the MMJ share price to trade at a premium to its net asset value represented by its NTA.
Embark Ventures believes it can achieve this goal through deal sourcing, leveraging off its related companies and sector experience, and by returning profits to shareholders.