Mr. Jim Hallam of MMJ Group reports

MMJ GROUP HOLDINGS LTD (MMJJF) PORTFOLIO UPDATE

Harvest One Cannabis Inc. investor MMJ Group Holdings Ltd. has provided an update on recent events in the MMJ investment portfolio.

1. Portfolio valuation

MMJ's unaudited posttax net tangible asset (NTA) per share was approximately 34 cents per share as at March 5, 2019, which represents a 36-per-cent premium to MMJ's current share price of 25 cents.

MMJ continues to see a positive outlook for its investment portfolio with continued recovery in the price of Harvest One Cannabis (HVT), the rollout of HVT's business strategy and further business development announcements across MMJ's portfolio in the coming months.

MMJ has a cash balance of $4-million and more than 70 per cent of the portfolio currently held in listed investments.

As announced previously, the board does not consider an equity raising to be in the best interests of shareholders. However, should the situation improve in the near term, MMJ will be retaining the flexibility to proceed with a share purchase plan (SPP) offering following approval of the SPP by MMJ shareholders on Feb. 22, 2019.

In light of the above, MMJ is assessing the timing of the implementation to allow the SPP and other capital-raising options to be implemented when the NTA is better reflected in MMJ's share price.

2. Harvest One Cannabis

a) Acquisition of Delivra Corp.

Harvest One Cannabis and Delivra announced on March 4, 2019, that they have entered into a definitive arrangement agreement pursuant to which HVT will acquire all of the issued and outstanding common shares of Delivra. Under the terms of the transaction, shareholders of Delivra will receive 0.595 common share of HVT for each Delivra share.

The acquisition of Delivra and its LivRelief brand, consisting of a variety of topicals and creams with existing distribution channels across Canada, will position HVT well when cannabis-infused products are legalized in Canada, which is expected in the late 2019. The acquisition of Delivra by HVT puts further emphasis on the HVT goal of being a leading house of brands in the global health, wellness and self-care sector.

MMJ owns 55.5 million shares in HVT, representing approximately 30 per cent of HVT's issued shares. Following the forecast completion of the Delivra acquisition and the issue of the HVT shares, MMJ will own approximately 26 per cent of HVT.

b) HVT management report for six months ended Dec. 31, 2018

MMJ has attached a copy of management's discussion and analysis for the six months ended Dec. 31, 2018, released by HVT on March 1, 2019.

Some of the highlights from the MD&A are:

• Second quarter 2019 net revenue for HVT was $3.7-million compared with $1.7-million in first quarter 2019. This increase was primarily attributed to initial recreational load-ins under HVT supply agreements with British Columbia, Ontario, Manitoba and Saskatchewan.
• As of Dec. 31, 2018, HVT maintains a cash balance of $41-million. HVT indicated that all current expansion plans are fully financed.
• Expansion plans at the Duncan and Lucky Lake facilities are on track as HVT targets an annual run rate of 20,000 kilograms of premium indoor grown flower by the end of calendar 2019.

3. Completion of Hemple investment

MMJ has completed its investment of $1-million (Australian) of ordinary equity for a 10-per-cent ownership interest in Trichomia Pty. Ltd. (Hemple) as foreshadowed on Feb. 14, 2019.

About MMJ Group Holdings Ltd.

MMJ Group Holdings is a global cannabis investment company. MMJ owns a portfolio of minority investments and aims to invest across the full range of emerging cannabis-related sectors, including health care, technology, infrastructure, logistics, processing, cultivation, equipment and retail.