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MMJ Group invests US$1 million in US digital health and pathology company Brainworks

“The investment in Brainworks demonstrates MMJ’s expertise to secure a private negotiated investment in unlisted businesses which are not generally available to Australian retail and institutional investors,” says chairman.

MMJ Group Holdings Ltd - MMJ Group invests US$1 million in US digital health and pathology company Brainworks

MMJ Group Holdings Ltd (ASX:MMJ, OTC:MMJJF) has completed a US$1 million investment in Brainworks Foundry Inc, an integrated digital health and pathology company operating in the United States.

The investment was part of a pre-IPO equity financing of US$3.7 million to fund the expansion of Brainworks’ Medio Labs laboratory testing operations in the US.

The ASX listed company has made the investment through its existing cash reserves.

Broadened investment mandate

MMJ chairman Peter Wall said: “The investment in Brainworks demonstrates MMJ’s expertise to secure a private negotiated investment in unlisted businesses which are not generally available to Australian retail and institutional investors.

“Brainworks represents continued deployment of funds in accordance with its investment strategy following the broadening of MMJ’s investment mandate in 2020.”

MMJ’s investment in Brainworks comprises 1,234,568 shares representing approximately 7% of Brainworks’ issued capital on completion of the proposed US$3.7 million capital raising initiative.

Medio Labs service

Medio Labs is a commercial laboratory testing service operated by Brainworks.

This service has designed a best-in-breed, highly scalable polymerase chain reaction (PCR) testing process, using DNA barcoding, which reduces the cost and turnaround time of next-generation gene-sequencer analysis for COVID19 samples.

The testing process was first deployed for COVID-19 PCR testing in October 2020 after receiving an Emergency Use Approval from the US FDA.

Gene sequencing pathology lab

Brainworks plans to use the proceeds from the offer in establishing its first larger-scale gene sequencing pathology lab in Alameda, California.

This will allow the US-based company to service up to 150 markets across the US and provide end-to-end gold-standard PCR COVID testing in under 24 hours with results to be delivered via the secure Brainworks digital health platform.

MMJ investments

MMJ is an Australian-listed specialist investment company that offers the opportunity to invest in a globally diversified portfolio holding investments in private (typically pre-IPO) and public companies in high growth industries.

Its current investments are largely minority holdings in Australian and offshore cannabis-related businesses with investments being added in other high growth industries but not limited to natural resources, healthcare and software services technology.

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