MJardin Group Announces Equity Capital Raise to Accelerate Expanding Growth Opportunities

DENVER–(BUSINESS WIRE)–MJardin Group (“MJardin” or the “Company”), a leader in North American cannabis facility management, today announces that it has engaged Canaccord Genuity Corp., to act as sole bookrunner, together with KES 7 Capital Inc. as co-lead agent (collectively, the “Agents”), to sell, on a best efforts private placement basis, pursuant to applicable prospectus and registration exemptions, subscription receipts of MJardin Group (the “Subscription Receipts”) to raise equity capital (the “Offering”) to accelerate the Company’s expanding growth opportunities.

The Offering will be completed in conjunction with the previously announced proposed reverse take-over of Sumtra Diversified Inc. (the “Transaction”) and proposed listing of the resulting issuer’s common shares on the Canadian Securities Exchange (the “CSE”).

A highly-experienced cannabis management company with an industry-leading track record, MJardin-managed licensed facilities have collectively produced and sold more than 100,000 kg of cannabis to date. MJardin is a profitable company with strong cash flow, executing a high-growth, recurring revenue model from operations in the U.S. and long-term international royalties through its exclusive relationship with Toronto-based GrowForce Holdings Inc.

“This capital raise will broaden an already strong shareholder base and provide incremental capital to further accelerate our growth,” said Joann Bailey, President of MJardin. “MJardin currently operates with a strong balance sheet, and this capital raise, along with the closing of the Transaction, will allow us to efficiently access the public equity markets, accelerate our acquisitive growth and capitalize on the significant opportunities in the fast-growing U.S. and international cannabis markets.”

MJardin has developed a comprehensive turnkey cannabis management platform, including proprietary software and staff training, that optimizes and de-risks commercial cannabis operations for cultivation, processing and retail facilities. The Company has a proven track record of operational excellence in 13 U.S. states, Canada and Australia, having designed and planned more than 100 legal cannabis facilities since inception with 30+ licensed facilities currently under management.

As previously announced in April 2018, MJardin spun-off an international company, GrowForce Holdings Inc., with a mission to become one of the premier vertically-integrated cannabis platforms globally outside of the U.S. GrowForce recently announced that it has entered into a license agreement with MJardin for the exclusive rights to its cannabis management services and intellectual property portfolio in international markets.

“MJardin’s proven turnkey management system includes our data and R&D-driven approach to maximize facility utilization and return on invested capital,” added Bailey. “We have consistently demonstrated our ability to increase facility output, drive operational efficiencies with minimal capital outlay, and operate the most efficient and profitable cannabis facilities in the industry.”

The significant challenges that current cannabis license holders face to operationally scale their single or multi-asset platforms create virtually unlimited demand for MJardin’s institutional approach and an overall opportunity to consolidate certain key U.S. markets as a principal. This macro trend is set to continue and likely accelerate as the regulated markets further expand.

Rishi Gautam, Executive Chairman of MJardin

MJardin has significant capital and operational expertise to execute on a high-growth business model through acquisitions in certain U.S. markets which meet MJardin’s rigorous internal criteria, and from royalty and management fees in various international markets through MJardin’s exclusive arrangement with GrowForce.

About MJardin Group

MJardin Group is a highly specialized professional management company that develops partnerships with licensed operators. MJardin provides its partners turnkey cannabis cultivation, processing and retail solutions including licensure support, facility design, systems implementation, facility ramp-up and the day-to-day operational management required in a large-scale, professionally managed cannabis facility. MJardin is headquartered in Denver, Colorado with an additional office in Toronto, Ontario. For more information, please visit www.mjardin.com.

Original press release

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