MMJ Group expects physical retail sales of cannabis to tick higher as lockdowns ease

MMJ Group Holdings Ltd (ASX:MMJ) (OTCMKTS:MMJF) expects physical retail sales of cannabis to tick higher along with continued robust online sales, as economies move out of lockdowns.

Lockdowns were a boon for cannabis sales as people stuck at home were seeking entertainment options, but the lockdown orders meant bricks-and-mortar retail outlets could not service their maximum number of customers.

The annual cannabis retail market in Canada is now C$3.5 billion annually.

MMJ expects over the next 10 years that market size to be a multiple of where it is today.

Canada-based licensed producers in MMJ’s portfolio such as Weed Me are set to take advantage of this growth.

MMJ’s portfolio

MMJ is focussed on creating a diversified portfolio of CBD and cannabis investments in cultivation, extraction and consumer products with material investments in Weed Me, WeedMD, Sequoya, Harvest One and Southern Cannabis Holdings.

The company is also able to make investments in sectors outside of cannabis, such as but not limited to, natural resources, pharmaceuticals and software services technology.

Following completion of BCAC’s acquisition of a US based wine business, Vintage Wines, MMJ has completed the first non-cannabis investment.

MMJ’s investees are realising opportunities to capitalise on the growing demand for CBD and cannabis products in North America and Europe.

The continued growth in the Canadian market and expansion of the Australian medicinal cannabis market underlines MMJ’s view that its material investments (HVT, Weed Me, WeedMD and Southern Cannabis Holdings) are well placed to generate material investment returns over the medium term.

Story by ProactiveInvestors