Mr. Jason Conroy of MMJ Group reports
MMJ GROUP HOLDINGS LTD (MMJJF) COMPLETION OF SALE OF PHYTOTECH THERAPEUTICS LTD
As announced on June 25, 2018, MMJ Group Holdings Ltd. has entered into a binding share sale agreement (SSA) pursuant to which it conditionally agreed to sell its wholly owned subsidiary PhytoTech Therapeutics Ltd. (PTL) to Harvest One Cannabis Inc. for total consideration of $8-million (the disposal).
The company is pleased to advise all conditions precedent to the disposal of PTL have been satisfied, and the disposal has been completed.
In accordance with the SSA, as consideration for the disposal, HVT has:
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Paid $1-million in cash;
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Issued 8,326,695 fully paid ordinary shares in HVT.
The number of HVT shares issued was calculated using the 10-day volume-weighted average price of HVT shares as at Oct. 11, 2018, being 84.067 cents ($7-million worth of HVT shares).
To satisfy outstanding obligations under PTL's Yissum Research Development Company research and licence agreement, the company nominated for 2 per cent of the disposal consideration to be provided to nominees of Yissum Research of the Hebrew University of Jerusalem Ltd. Accordingly, Yissum received $20,000 in cash and 166,534 of the HVT shares. The company retained the rest of the disposal consideration being $980,000 and 8,160,161 HVT shares.
Change of company name
The company has also now changed its name from MMJ PhytoTech Ltd. to MMJ Group Holdings Ltd., and upon being readmitted to quotation on the Australian Securities Exchange, the company will have its shares continue to trade under the ASX ticker code MMJ.
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