As some of you may have seen, a subsidiary of Harvest One Cannabis Inc. (TSXV:HVST) (OTC:HRVOF) was awarded its sales license from Health Canada this past Friday. What comes as a surprise to many is that HVST is 59% owned by the Australian company MMJ PhytoTech Ltd. (ASX:MMJ) (OTC:MMJJF).
While many cannabis investors are focused on the developments in North America, there's also a lot happening for cannabis companies in the land down under.
As noted above, MMJ PhtyoTech owns a majority stake in Harvest One following its investment earlier this year. Harvest One's wholly-owned subsidiary, United Greeneries, was the entity awarded a sales license from Health Canada. Given MMJ's substantial ownership of HVST, it's no wonder that shares of this ASX-listed cannabis company went flying.
Harvest One is an early-entry global cannabis company focused on servicing both the medical and recreational cannabis markets, in Canada and internationally. Shareholders have significant exposure to the entire cannabis value chain through the company's three business units, with Harvest One serving as the umbrella company over horticultural arm United Greeneries and medical arm Satipharm AG.
Since United Greeneries already has 220 kilos of dried cannabis buds in storage for immediate sale, and also has a strategic wholesale agreement with CannTrust Holdings Inc. (CSE:TRST) (OTC:CNTTF) for the L.P.'s first year of cannabis production, the company is expected to begin generating cash flows immediately.
After seeing MMJ PhytoTech shares surge up nearly 6% in today's session, many are taking note of the opportunities in ASX-listed cannabis companies. With another cannabis-related company set to IPO on the ASX later this year, we'll be increasing our coverage of developments in Australia to keep readers abreast of the developments.
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