MYM....time to shine....just take a read!!! $$$$ Weedon Property / CannaCanada Inc
On June 20th, 2017 MYM Nutraceuticals issued a significant press release – it had signed an exclusive deal with a municipality in Quebec. Namely, the municipality of Weedon. Within this deal, MYM committed itself to build fifteen 100,000 square foot greenhouses, on a property 329 acres in size. The unbelievable part of this deal, is that the municipality will provide the company with those 329 acres, free of charge. It is anticipated that the facility, when at full capacity, will produce 150,000 kg annually of cannabis, worth approximately $750M.
The deal is being exercised through a subsidiary based out of Montreal, which MYM owns 75% of currently. This subsidiary, CannaCanada Inc, is the entity that had the contacts that enabled the project to happen. Upon certain conditions, MYM Nutraceuticals will be able to acquire an additional 15% of the company, bringing its total ownership rights to 90%. In total, 3,000,000 shares will be issued to CannaCanada as part of the deal, which will be released upon certain conditions being met. An additional 10% finders fee was issued to the person that brought the deal forward.
The facility, clearly, will be built in stages. Currently, they are working on establishing the first three 100,000 square foot greenhouses, in addition to a 20,000 square foot warehouse. Upon licensing of this facility, MYM will continue to build out the facility with more grow spaces in a total of three phases. In addition to this, the grounds will also include a training facility, an R&D facility, a cannabis museum, an auditorium, and a small hotel.
Australian Venture with PUF Ventures
Feeling as if it hadn’t stretched itself out enough, on October 18th, MYM Nutraceuticals announced that it was partaking in an Australian venture. This project, which it will own 35% of, consists of a 1,000,000 square foot greenhouse, that will produce approximately 100,000 kg of product a year once fully licensed. It is a deal similar to that of its Weedon deal, in that it involves a local municipality. This time however, it also includes a Canadian competitor – PUF ventures.
If you haven’t noticed by this point in time, its clear that MYM Nutraceuticals likes to publish large numbers to get investors excited. This Aussie venture follows this trend. As part of the deal, both PUF and MYM will be required to input significant funding for the project. Which debateably, neither company has a whole lot of access to. With all the projects MYM has on the go currently, it’s questionable whether or not they’ll be able to continue to find funding for their grand schemes.
Finances
The Basics
Believe it or not, MYM Nutraceuticals actually has somewhat decent financials, which is an anomaly for the companies we’ve previously focused on. It has managed to stay away from long term debt miraculously, which is tough to believe given the number of acquisitions it has performed.
As of August 31st, 2017, MYM had approximately $2.12M worth of assets, which includes both current and non current assets. When it comes to liabilities, it only owes about $246k in payables and to related parties. Additionally, as a result of its HempMed acquisition, it can now actually report it has revenues. This may seem unimpressive to some, but not many ACMPR applicants can say they have income before receiving a license. It just doesn’t work that way. In fact, MYM Nutraceuticals itself had no revenues for the first two years of its existence, it relied solely on loans and equity raises to fund its projects.