DJ Sativa Investments PLC Strategic Update, RSM appointed, trading company
RNS Number : 2884Y
Sativa Investments PLC
08 May 2019
Press Release 8(th) May 2019
The information contained within this announcement is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.
Sativa Investments PLC
("Sativa" or "the Company" or "the Group")
Reclassification as a Trading Company
Proposed name change
RSM appointed as Auditor
Sativa Investments PLC (NEX: SATI), which joined the NEX Exchange Growth Market in March 2018 as the UK's first medicinal cannabis investment vehicle, is pleased to announce a strategic update ahead of the Company's announcement of audited results for the year ended 31 December 2018, scheduled for 13 May 2019.
Due to the faster than expected advancement of the UK Medicinal Cannabis regulatory environment, and the evolution in consumer demand for Cannabidiol (CBD) products across Europe, Sativa has amended its strategy to focus more on UK operations, which already include 100% ownership of two UK based businesses, CBD manufacturer, wholesaler and retailer George Botanicals, and PhytoVista Laboratories, an independent testing facility that analyses both the Company's and third parties' products and compounds. The Company also has a 60% controlling share in a German subsidiary.
Sativa has announced the opening of its first Goodbody & Blunt retail wellness centre in early summer.
In October 2018, Sativa signed an option over a 7.53 acre site in Wiltshire to allow it to evaluate the commercial viability of developing and owning a large-scale UK growing facility. The Company has since concluded that smart-sourcing of the raw material, to which the Company can then add value through advanced extraction, manufacture, testing, distribution and research of medicinal cannabis and CBD products, will provide greater returns to the Company than growing its own supply. The option, which was acquired at a cost of GBP85,000, will therefore be allowed to lapse on 1 July 2019.
The Company's application for a Home Office Research & Development licence to grow medicinal cannabis is proceeding well. This application, if approved, is expected to meet the immediate need to satisfy the Company's three-year research agreement with King's College London relating to the impact of cannabinoids on inflammation and respiratory diseases. Subject to the grant of the licence, the Company will grow a limited number of cannabis plant varieties to order at its highly secure test production facility. The Company is planting imminently its second crop of hemp, covered by its low THC growing licence.
Proposed name change
As Sativa has substantially fulfilled the investment strategy set out when it joined the NEX Exchange Growth Market, the Company will now be classified as a trading company, rather than an investment vehicle. The Directors believe that this might broaden the appeal of the equity opportunity to additional institutions and family offices, many of which are precluded from investing in fund-type vehicles.
To reflect this re-classification, the Company intends to change its name to Sativa Group Plc, and a resolution to that effect will be put to shareholders at the forthcoming AGM.
RSM appointed as Auditor
In tandem with its expansion plans, the Company has appointed international audit and advisory firm RSM as the Company's Auditor, and RSM will be reporting on the Company's results for the year ended 31 December 2018 which are due to be released on Monday 13 May 2019. The audit team is led by Partner Neil Stephenson.
Commenting on these developments, Chief Executive and Founder Geremy Thomas said: "Sativa delivered on its Listing objectives expeditiously and is now into its next phase of becoming a full-spectrum Group covering the key value-add parts of the medicinal cannabis and CBD industries.
"The Group has an exciting future and the team is looking forward to achieving future key milestones including the opening of the Bath Goodbody & Blunt store and the planting of the first seeds at our test and growing facility once Home Office approval is granted."
The Directors of the Company accept responsibility for the contents of this announcement.
- Ends -
For further information please contact:
Geremy Thomas Joseph Colliver Founder & Chief Executive Officer Chief Financial Officer Sativa Investments PLC Sativa Investments PLC +44 (0) 20 7971 1255 +44 (0) 20 7971 1255 firstname.lastname@example.org email@example.com NEX Exchange Corporate Adviser Guy Miller and Lucy Williams Peterhouse Capital Limited +44 (0) 20 7469 0930 firstname.lastname@example.org Financial PR and IR Abchurch Communications Julian Bosdet Abchurch Switchboard +44 (0) 20 7469 4630 SativaInvestments@abchurch-group.com www.abchurch-group.com
Notes to Editors
Sativa invests in well-placed ventures within the dynamic regulatory environment of the Medicinal Cannabis sector. The Company's pan-European, end-to-end, seed-to-consumer investment strategy focuses on the production, testing and compliance, research and development, including pharmacology, commercialisation and sales and marketing of Medicinal Cannabis in jurisdictions where it is regulatorily permitted. Sativa has committed to an independent legal review prior to each investment to verify compliance with the prevailing regulatory environment.
The Company's equity interest in an investment may range from a minority position, to a controlling interest, or to 100 per cent ownership. The ventures that Sativa acquires can either be public or private.
Sativa Investments has already made six investments to date, these being Canada-based and dual-listed emerging pharmaceutical company, Veritas Pharma Inc. ("Veritas Pharma" or "Veritas"), CSE-listed Toronto-based Pharma-Tech company Rapid Dose Therapeutics Inc. ("RDT"), which owns the patent-pending proprietary QuickStrip(TM) technology, UK-based CBD products provider George Botanicals Ltd (of which Sativa has 100 per cent ownership), PhytoVista Laboratories (of which Sativa also has 100 per cent ownership), a UK testing laboratory meeting the need for regulatory and batch testing of products such as CBD oil, a joint venture with Germany's Lexamed GmbH, and an option on a 7.53-acre development site in Wiltshire with the potential to build a glasshouse for growing raw cannabis for medicinal and CBD use.
Sativa is also focussed on researching and developing medicinal cannabis products by funding university research grants of medicinal cannabis through its Sativa Foundation.
The Company's Board and Medicinal Cannabis Advisory Board have a combined 60 years' industry experience, with significant pharmaceutical strength and experience and extensive contacts in the industry, which includes pharmacologist Sir Alasdair Breckenridge, who liaises with the Home Office and the Medicines and Healthcare products Regulatory Agency, which he has chaired, for the legalisation of medicinal cannabis in the UK Their extensive skills range from capital fund raisings, medical research, and start-ups, to pharmaceutical development.
For more information on Sativa Investments, please visit: www.sativainvestments.com
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(END) Dow Jones Newswires
May 08, 2019 02:00 ET (06:00 GMT)