DJ Sativa Investments PLC Swiss cannabis oil offtake agreement
RNS Number : 4989B
Sativa Investments PLC
07 June 2019
Press Release 7 June 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
Off-take agreement with Swiss supplier of cannabis oil
for the UK manufacture of cannabidiol (CBD) products
Sativa Investments PLC (NEX: SATI), (or "Sativa" or the "Company" or the "Group"), the UK's first quoted medicinal cannabis investment vehicle and now an operating Company with two fully trading UK businesses, has entered into a commercial offtake agreement with a Swiss supplier for cannabis oil for the UK manufacture of cannabidiol (CBD) products.
The offtake agreement is with Alponics SA ("Alponics"), a company founded in 2018 with operations in Vaud and Valais, Switzerland, a country where cultivation and production of CBD products has been legal since 2017. Alponics is expected to cultivate and provide high quality CBD Distillate and Isolate, beginning production this autumn. Alponics was founded by Pacific Rim Plantation Services (PACRIM), which has over 25 years of agricultural knowledge, specialising in responsible production to the highest quality of chemical-free edible oils, ensuring environmental safety and long-term sustainability.
The Alponics leadership team includes its Chief Operating Officer who has direct experience in the Cannabis industry from working with Tilray Inc., its Chief Financial Officer with 32 years of global engineering and financial expertise, along with the backing of a significant parent company in PACRIM. Alponics is supported by an expert team of specialists, dedicated to the provision of premier customer service and ensuring long term sustainable production.
Geremy Thomas, founder and Chief Executive Officer of Sativa Investments, said: "This commercial agreement with Alponics further advances our smart-sourcing strategy. We look forward to a long and mutually beneficial relationship with Alan Chaytor and his impressive team."
Alan Chaytor, founder of PACRIM, said: "We are delighted to be supplying Sativa and look forward to working with the Company in the coming years. Our expert team, along with our past experience in delivering to some of the world's best-known household brands, allows us to provide Sativa with the best products and outstanding customer service."
The agreement is for the three calendar years to December 31st December 2022 with volumes of CBD Distillate and Isolate specified and involving a fixed pricing structure.
The Directors of the Company accept responsibility for the contents of this announcement.
For further information:
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 email@example.com firstname.lastname@example.org NEX Exchange Corporate Adviser Guy Miller Peterhouse Capital Limited +44 (0) 20 7469 0930 email@example.com ---------------------------------- Financial PR and IR Julian Bosdet Abchurch Communications +44 (0) 7771 663 886 SativaInvestments@abchurch-group.com ----------------------------------
Notes to Editors
Sativa is a seed to Consumer medicinal cannabis and cannabidiol (CBD) wellness business, focused on the smart-sourcing of the raw material, advanced extraction, manufacture, testing, distribution, and research & development of medicinal cannabis and CBD products. The Company has a Home Office licence application in process which, when granted as the Directors believe it will be as the application is in its final stages, will enable the Company to engage in the highly regulated process of growing, strictly for medicinal research & development purposes only, Tetrahydrocannabinol (THC) rich cannabis flowers at its high-security Somerset headquarters.
The Company joined the UK's NEX market in March 2018 as the UK's first medicinal cannabis investment vehicle and since then has capitalised on its first-mover advantage, developing a substantial UK bridgehead into what the Company believes will be a significant market in the future. Two UK operating subsidiaries, PhytoVista Laboratories and George Botanicals, are already well established and fully trading with healthy gross margins in independent CBD testing and CBD wholesale & retail respectively.
Phytovista has conducted over 1000 independent tests and George Botanicals develops, manufactures and distributes low-THC CBD wellness products. Other important future revenue streams are at various stages of development from concept to actual launch, with the first Goodbody & Blunt CBD wellness centre opening in Bath on 28th June.
Prior to the Listing, the Company Sativa's founder and CEO, Geremy Thomas, spent 12 months researching the global medical cannabis and CBD industries at his own personal expense. He based himself in Canada, the most advanced country in terms of medicinal cannabis acceptance and regulation, travelling to America, Australia, the Far East, and Europe to connect with industry leaders and participants. The Company on Listing was therefore already internationally connected, and this has given it a head start within the UK industry for smart-sourcing and the adoption of advanced value-add techniques and models.
In May 2019 the Company obtained permission from NEX Exchange to reclassify itself as a trading company, having delivered on its original investment strategy. Benefits of this include widening the appeal of the equity opportunity to additional types of investors including institutions and family offices, many of which are precluded from investing in fund-type vehicles.
Sativa has a highly experienced Medical Advisory Board, Chaired by Sir Alasdair Breckenridge, a former Chairman of the Medicines and Healthcare Products Regulatory Agency (MHRA). He is joined by Dr Matthew Brown, an award-winning pain consultant at The Royal Marsden Hospital, Dr. Peter Fedlshreiber, a barrister and physician specialising in medical law, and Dr. Stuart Ungar, co-founder of the Doctors Laboratory and who researched biochemical neuropsychopharmacology at the Royal Free Hospital.
The Company has a strong senior management team and Board team including Joseph Colliver FCA as Chief Financial Officer and a Board Director, and Jonathan Wearing, a seasoned City corporate financier, as Chairman. Dr Nick Horniman, Director of Regulatory Affairs, has over thirty years of experience in the veterinary industry and he co-ordinates the Group's ongoing relationships with regulators such as the Home Office, Food Standards Agency (FSA) and the Veterinary Medicines Directorate (VMD). He is also investigating the significant opportunities for medicinal cannabis and CBD products in the pet and equine markets. Chris Jones, a retail management professional who was instrumental in building the Phones 4U chain, leads the team developing the Goodbody & Blunt wellness centres, which will offer customers a variety of high-quality CBD products.
Sativa's smart-sourcing strategy enables it to define the crucial factors of seed strain, growing techniques and environment, along with extraction methods, all of which are imperative to the quality of the end-product. Phytovista Laboratories confirms the cannabinoid profile and quality of each batch on delivery to ensure that it is regulatorily compliant, is free of unwanted chemical elements, and is of proven origin. The commercial off-take agreements that the Company is entering in to will contribute to quality assurance, forecasted forward quantities of supply, consistency, and pre-determined pricing, rather than spot pricing.
The Group's activities include the Sativa Foundation, which awards research grants to academic institutions in order to further research & development into the efficacy of the full spectrum of cannabinoids. In April 2019 the Company entered into a three-year research agreement with King's College London to research the impact of cannabinoids on inflammation and respiratory diseases.
Sativa has invested in two Canadian-based businesses, pharmaceutical company Veritas Pharma Inc. and a Rapid Dose Therapeutics Inc. Both of these provide Sativa with valuable know-how alongside their investment potential. The Company also has a 60% share of a joint venture with Germany's Lexamed GmbH, providing a foothold into the German market.
For more information on Sativa Investments, please visit: www.sativainvestments.co.uk
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(END) Dow Jones Newswires
June 07, 2019 02:12 ET (06:12 GMT)