DJ Eurocann International Plc Interim Results for the 6 Months Ended 31 May 2019
TIDMBUD 30 August 2019 EUROCANN INTERNATIONAL PLC ("Eurocann", "Valiant Investments" the "Group", or the "Company") INTERIM RESULTS FOR THE 6 MONTHS ENDED 31 MAY 2019 I am pleased to report on what has been a transformative period for the Company, which has laid the foundations for what the directors believe will be an exciting future in the burgeoning medicinal cannabis sector. Such changes were formalised at a General Meeting held on 21 June 2019, where shareholders approved a number of resolutions to enhance the outlook for the Company as a listed entity. Following the meeting, the Company's name was changed from Valiant Investments to Eurocann International; a change formerly recognised at the Registrar of Companies - Companies House - on 1 August 2019. I was delighted to welcome two new directors to the board, namely Jeremy Ross and Burns Singh Tennent-Bhohi, both of whom bring a wide range of operational and corporate experience to Eurocann. Jeremy is a former director, and now on the Advisory Board, of Speakeasy Cannabis Club Ltd, a Canadian company that intends to grow, produce, and cultivate cannabis for medical purposes on its real estate in British Columbia. The contacts and deal-flow that Jeremy has access to will be invaluable as Eurocann moves from being an investment vehicle to an operational company. Burns, meanwhile, was instrumental in driving the restructuring and recapitalisation of Eurocann forward, and he has a diverse skillset that will be of immeasurable value to the Company in both the short and medium term. Concurrent with the change of name and new director appointments, we were delighted to announce that GBP262,742 has been raised pre-expenses. The fundraise immediately ensured that the Company had a sound financial position, which it rarely had prior to this restructuring. Finally, along with the aforementioned changes, we were pleased to dispose of the holding in Flamethrower plc, and to adopt a new investing strategy in the medicinal cannabis sector. Specifically, Eurocann's new investment strategy is to invest in companies, projects, or products that are either progressing medicinal/therapeutic cannabis research and development, or are developing, or have already developed products, and require funding to progress plans or commercialise products. THE HUMAN ENDOCANNABINOID SYSTEM It was only in the 1990's when scientists recognised that the human body has its own endocannabinoid system, which genetically dates back over 600 million years. Currently there are understood to be two primary types of endocannabinoid receptor, namely CB1 and CB2, of which both are found throughout the body. The human body produces two cannabinoids, anandamide and 2-arachidonoylglycero (2-AG), which share a similar structure to the phytocannabinoids found in marijuana and hemp. These cannabinoids produced by the body correspond and help regulate our organs and nervous systems, and if our bodies produce insufficient amounts of these cannabinoids then a number of health-related issues can arise, such as inflammation and inflammatory conditions, insomnia, stress and anxiety, bone health, ocular health, and neurological conditions. There are currently understood to be at least 113 different phytocannabinoids isolated from cannabis, of which tetrahydrocannabinol (THC) is the most widely recognised, due primarily to its psychoactive properties. However, for medicinal purposes, cannabidiol (CBD) has garnered wide attention and is being increasingly used for pain relief and for its anti-inflammatory benefits to human health. However, CBD itself does not attach to either of the body's two endocannabinoid receptors, but it does support the CB1 receptor by prohibiting the breakdown of the body's anandamide, thereby increasing the bioavailability to attach to the CB1 receptor. This is one example of where looking at the full spectrum of phytocannabinoids could be sensible so as to give greater benefits to human health through also targeting the CB2 receptor, rather than focussing on just one phytocannabinoid to aid the CB1 receptor like CBD. Fully understanding and targeting our body's endocannabinoid system is likely to dominate medicine and nutrition for at least the next couple of decades as we expand our understanding of both the endocannabinoid network and the potential preventative and palliative benefits that phytocannabinoids could have on our health. We are excited as to the role that Eurocann will play in such developments. FINANCIALS The financial results cover the six-month period to 31 May 2019, which is prior to the date of the General Meeting (21 June), when the recapitalisation and restructuring was duly approved by shareholders. During the first half of the financial year, turnover was GBP35,284 (2018: GBP 50,182), which reflects the revenue generated by the former 84.7% owned subsidiary, Flamethrower plc. The loss for the period was GBP41,792 (2018: GBP 87,591), and the basic loss per share was 0.01p (2018: 0.01p). OUTLOOK My co-directors, Burns, Jeremy, and I, are all excited as to the potential for Eurocann International following the recent restructuring and recapitalisation. We are sourcing potential opportunities and undertaking due diligence, and we hope to announce a maiden transaction for the Company in the not too distant future. I would like to take this opportunity to thank our shareholders, old and new, for their support of the Company, and to our advisors for their continued support. I would like to pay special thanks to Guy Miller at Peterhouse Capital for the invaluable role he has played in transforming the Company and its prospects over recent months. We look forward to updating shareholders on developments at Eurocann in the weeks ahead as we move forward in the exciting and transformative industry of medicinal cannabis. Conrad Windham Executive Director, Eurocann International plc 28 August 2019 The Directors of the Company accept responsibility for the contents of this announcement. ENQUIRIES: Company Eurocann International plc Conrad Windham/ Burns Singh Tennent-Bhohi Telephone: 01366 500722 Corporate Adviser Peterhouse Capital Limited Guy Miller and Mark Anwyl Telephone: 020 7220 9796 EUROCANN INTERNATIONAL PLC (FORMERLY KNOWN AS VALIANT INVESTMENTS PLC) CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME SIX MONTHS ENDED 31 MAY 2019 Unaudited Audited Unaudited 6 month period year ended 6 month period ended 31 May 30 November ended 31 May 2019 2018 2018 GBP GBP GBP Revenue 35,284 109,578 50,182 Cost of sales (35,732) (70,137) (33,856) GROSS (LOSS)/PROFIT (448) 39,441 16,326 Administrative expenses (43,380) (186,109) (106,067) Other non-operating 2,036 5,298 2,150 income LOSS BEFORE TAX (41,792) (141,370) (87,591) Income tax expense - - - LOSS FOR THE PERIOD/YEAR (41,792) (141,370) (87,591) Attributable to: Equity holder of the (36,420) (139,599) (87,156) parent Non-controlling interest (5,372) (1,771) (435) LOSS PER SHARE Basic & diluted (pence (0.01) (0.01) (0.01) per share) EUROCANN INTERNATIONAL PLC (FORMERLY KNOWN AS VALIANT INVESTMENTS PLC) CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 MAY 2019 Unaudited Audited Unaudited at 31 May 2019 At 30 November At 31 May 2018 2018 GBP GBP GBP NON CURRENT ASSETS Intangible assets 90,007 112,396 131,030 Property, plant and 3,016 3,666 4,301 equipment Investments 28,630 63,294 80,905 121,653 179,356 216,236 CURRENT ASSETS Trade and other 11,006 22,406 5,409 receivables 1,130 4,130 - Investments Cash and cash equivalents 4,251 1,289 4,549 16,387 27,825 9,958 TOTAL ASSETS 138,040 207,181 226,194 EQUITY PLUS NON-CONTROLLING INTEREST ISSUED SHARE CAPITAL AND RESERVES Share capital 1,208,059 1,208,059 1,208,059 Share premium 1,067,510 1,067,510 1,067,510 Retained profits (2,177,572) (2,141,152) (2,088,709) SUBSCRIBED CAPITAL 97,997 134,517 186,860 Non-controlling interest (8,816) (3,444) (2,108) TOTAL EQUITY 89,181 131,073 184,752 CURRENT LIABILITIES Trade and other payables 48,859 76,108 41,442 TOTAL EQUITY AND 138,040 207,181 226,194 LIABILITIES Notes: 1. The financial information contained in the interim report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006.
(MORE TO FOLLOW) Dow Jones Newswires
August 30, 2019 11:00 ET (15:00 GMT)
DJ Eurocann International Plc Interim Results for -2-
2. Basic loss per share has been calculated using the weighted average number of shares of 1,208,058,666 (30.11.18: 1,194,639,488 ; 31.5.18: 1,174,222,600). Given the loss per share, there are no dilutive instruments in issue. 3. The Directors of the issuer accept full responsibility for this announcement. END
(END) Dow Jones Newswires
August 30, 2019 11:00 ET (15:00 GMT)