Chapmans Ltd. (ASX:CHP) just announced that the company completed a strategic investment in MJ Life Sciences Pty Ltd, a.k.a. MJLS.
MJLS is an Australian special-purpose company established with the aim of becoming a leader in the global medical marijuana space. MJLS is direct investor in Caziwell Inc., owner of North American medical cannabis brand Aunt Zelda's, with convertible note rights of up to 49.99% of Caziwell Inc.
MJLS was founded and owned by three of the leaders in the Australian and worldwide medical marijuana industries including Harry Karelis, Jason Peterson, and Dr. Stewart Washer. Between these three, this includes founders/directors of Auscann Group Holdings (ASX:AC8) (OTC:ACNNF), Zelda Therapeutics Ltd. (ASX:ZLD) (OTC:ZLDAF), CannPal Animal Therapeutics Ltd. and medical marijuana clinic operator CliniCann Ltd.
With substantial experience in the regulatory and operational hurdles inherent in the marijuana industry, these three have what it takes to bring MJLS to the top of the market.
By making an investment of $631,313 AUD, Chapmans received a 50% equity stake in MJLS. Additionally, Chapmans has the right to equal board representation and will therefore control 50% of the MJLS board of directors.
Peter Dykes, Executive Chairman of Chapmans, commented, "Chapmans shares common investment principals and goals with MJLS and is delighted to be working with such experienced medicinal cannabis industry experts seeking to capitalise on clear and compelling growth market opportunities. We look forward to working closely with the board of directors of MJLS and building substantial shareholder value in the process."
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