mmj/hvt, page-3

I doubt very much that anyone is keeping the price down. The medical cannabis industry is still in its infancy, and although there's obviously huge potential ahead of us (possibly even more than most people are predicting), there are always some nervous investors in an unproven market, so we've got to expect some SP fluctuations until some serious income starts rolling in.

The Harvest One investment is the stand-out in the MMJ portfolio, and the HVT future looks very bright to me. Forecast near-term annual production of 21,500kg from the 3 indoor growing facilities, and 50,000kg from the outdoor BC facility after recreational use is legalised adds up to big dollars.

United Greeneries have held their production licence since June 2016, and are well advanced in establishing their production capacity.

Satipharm have been producing the Gelpell Capsules since May 2015, and after establishing the market for the capsules in Germany and Poland, they are moving on to marketing in other EU countries, and then to Canada and Australia.

DreamWater will give them an additional immediate revenue stream, and an established distribution network.

Allowing for dilution due to the DreamWater acquisition, I think our holding in HVT is about 30%. Anyway, I think MMJ hold about 53.3 million HVT shares. At 93c a share, I think that equates to about $49.6 million Canadian, or $51.4 million Australian. That's quite a sizeable investment, and I would expect that when the Canadian legalisation comes into effect (probably in August), the HVT share price is likely to get a substantial lift.

However much the SP fluctuates over the next few months, I certainly won't be selling any of my MMJ holding.