Question HVST, page-2

Will attempt to answer your question, your point is a question of valuation and therefore can be approached in many ways. Assuming a highly naive and highly simplified I will attempt to use a sum of parts approach to answer your question.

For simplicity we will assume that MMJ only owns this stake in HVST ignoring their medical arm and esense stake.

Valuing the HSVT stake
AUDCAD currently trades around 0.9680.
This means that based on the closing SP of HVST of 87c. The market cap of HVST is circa CAD77.5mio (take shares outstanding X share price)

Assuming that the only value of MMJ is the value of its equitable stake in HVST. Then MMJ should have a market cap of (59% x 77.5Mio)/.9680 =~AUD47mio.

MMJ today at around 54c represents a market cap of 100mio. This means that at present based on sum of the parts, the market views the value of other parts of the business at 53mio or value the future prospects of the business higher than present day prices.

Pardon my example as it is terribly simplistic. I hope it does answer your question though that the SP of MMJ shouldnt be anywhere other than what the market is seeing or willing to pay for the business. In valuation, many models and methods exist outside a sum of the parts valuation. For example a DCM or even a PE multiple method for mature industries. You could google valuation on youtube, its a great way to learn!