ASX-listed pot stock MMJ Phytotech has invested $CAD1 million ($A1.02 million) in Canadian cannabis retailer Fire & Flower Inc ahead of the legalisation of marijuana for recreational use in Canada.
MMJ Phytotech has acquired 1.25 million shares in Fire & Flower at 80 Canadian cents per share, giving it a small stake of 1.6 per cent.
Edmonton-based Fire & Flower plans to open 37 retail stores in Alberta province, after the Canadian government introduced legislation in April 2017 with a goal of legalising and regulating the use of recreational marijuana by the northern hemisphere summer of 2018.
‘Fire & Flower is a retail investment with an experienced management team and significant potential that further diversifies our portfolio ahead of the expected federal legalisation of cannabis later this year in Canada,.’ MMJ’ chief executive Jason Conroy said on Monday.
Fire & Flower describes itself as a corporate retail store ‘specialising in elevating Canadian cannabis products through experiential strategies and education-based programming’.
Perth-based MMJ Phytotech has investments in a variety of cannabis-related sectors, including cultivation, processing, healthcare products, and technology and infrastructure.
The investments include a stake in Toronto-listed Harvest One, which grows medicinal grade cannabis and also makes cannabis-based health products.
MMJ Phytotech shares were 1.25 cents, or 3.4 per cent, higher at 38.25 cents at 1355 AEST on Monday.