MMJ Phytotech Ltd

MMJ Details
·         Expanding European Distribution network: MMJ Phytotech Ltd (ASX: MMJ) stock surged over 57.89% on March 13, 2017 driven by the group’s efforts of European expansion. The group’s Switzerland-based subsidiary, Satipharm AG got Pharmaceutical Central Numbers (PZN codes) for its 10mg and 50mg Gelpell-CBD Microgel Capsules. With this, both products would be sold in all pharmacies throughout Germany. Moreover, MMJ Phytotech’s online distribution partner, German Bodfeld Pharmacy, has begun the shipping of Satipharm’s cannabidiol extract products to regulated markets globally, boosting their capacity to rapidly scale up product sales. Satipharm also made a binding Letter of Intent (“LOI”) with a leading pharmaceutical distributor and retailer in Denmark for distributing Satipharm’s products throughout Scandinavia. MMJ Phytotech is focusing on marketing across major European markets including Denmark, Germany, Norway, Sweden and Finland, to boost their sales in the coming 6-12 months. On the other hand, Macquarie Group Ltd (MQG) has ceased to be a substantial holder of MMJ’s securities.

·         Recommendation: MMJ stock already rose over 143.6% in the last three months (as of March 10, 2017). With the recent rise, we believe the stock is currently placed at higher levels and is “Expensive” at the current price of – $ 0.75

Perseus Mining Ltd

PRU Details
·         Boosting capital position to fund growth strategy: Perseus Mining Ltd (ASX: PRU) stock rallied 13.12% on March 13, 2017 as the group raised a total of US$60 million of debt finance to be used to finance its growth strategy. This financing comprises a US$40 million project debt facility which would be used to finance the completion of the development of the Sissingué Gold Mine. The group expects their Sissingué’s mine to incur over US$64 million (including full contingency as of March 10, 2017). This would be funded by a combination of Perseus’s internal cash resources and the project loan provided by Macquarie. First gold production at Sissingué is estimated to occur in the March 2018 quarter. Meanwhile, the group has been offered a second US$20 million debt facility for Perseus’s Ghanaian subsidiary which would be used as required to provide general working capital over the next twelve months while production at the Edikan Gold Mine is ramping up. On the other side, the group reported that their Gold production reached 37,789 ounces during January 01 to March 10, 2017 which is 5,565 ounces or 17% more than December 2016 Quarter production of 32,426 ounces. The stock also got a boost from the positive bounce in the gold prices.

·         Recommendation: PRU stock lost over 47% in the last three months (as of March 12, 2017) placing the stock at reasonable levels.We give a “Speculative Buy” on the stock at the current price of – $ 0.34

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