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DJ AfriAg Global Plc Unaudited Results for the six months to 30 June 2020

 
TIDMAFRI 
 
For immediate release                                                21 July 2020 
 
                               AfriAg Global PLC 
 
                      ("AfriAg Global", or the "Company") 
 
         Unaudited Interim Results for the six months to 30 June 2020 
 
AfriAg Global PLC (AQSE: AFRI), today announces its interim results for the 
6-month period ended 30 June 2020. 
 
Like many public companies around the world, the COVID-19 pandemic has 
unfortunately slowed down the Company's efforts with respect to completing the 
Apollon UK transaction (see below), however we are totally focused on working 
through the delays and proceeding with this very exciting transaction. We are 
working diligently with our advisers and regulators towards putting this deal 
to shareholders for their careful consideration and approval. 
 
Medical Cannabis Investments: 
 
The Company currently owns 4.64 million shares (representing 2.68%) of the 
share capital of Apollon Formularies Ltd ("Apollon UK"). 
 
The Company is currently working with Apollon UK to satisfy all regulatory 
requirements for the proposed acquisition of the entire issued share capital of 
Apollon UK (the "Acquisition") as previously announced. In due course, subject 
to making an offer to the shareholders of Apollon UK and obtaining the 
necessary approvals, the Company intends to send an explanatory circular and 
notice of general meeting to its shareholders seeking approval of the 
Acquisition. It is intended that the Company will acquire all the issued and 
outstanding shares from the shareholders of Apollon UK pursuant to a right of 
first refusal in consideration for the issue and allotment to those 
shareholders of new ordinary shares in the capital of the Company at a price of 
10 pence per new ordinary share. 
 
Apollon UK is entitled to 95% of the net profit of Apollon Formularies Jamaica, 
Limited ("Apollon Jamaica"). Subject to approval from the Cannabis Licensing 
Authority in Jamaica, Apollon UK has the right to acquire a 49% interest in the 
issued share capital of Apollon Jamaica. 
 
Apollon Jamaica holds the following licenses: 
 
 1. Licence to cultivate cannabis for the sole purposes of undertaking 
    research, including clinical research as approved by the Ministry of 
    Health; 
 2. License to process and manufacture any cannabis-based products that have 
    been approved by the Ministry of Health for medical, therapeutic and 
    scientific purposes (Processing Licence 170209113513) at designated 
    premises of Apollon Jamaica; and 
 3. License to provide therapeutic services using cannabis (Retail (Therapeutic 
    Services) Licence 170209153635). 
 
Financial Results: 
 
The operating loss for the period was GBP60,000 (6 months ended 30 June 2019: 
loss GBP88,000). Loss before tax was GBP62,000 (6 months ended 30 June 2019: loss GBP 
88,000). There was a weighted loss per share of 0.19p (30 June 2019: loss per 
share 0.47p). 
 
The unaudited interim results to 30 June 2020 have not been reviewed by the 
Company's auditor. 
 
Outlook 
 
We have a very unique ability, being one of the few companies listed in London 
and indeed Europe, to actually undertake investments in the fast-growing legal 
medical cannabis sector. Although the global cannabis market has come off its 
highs of last year, the medical research side will become more significant as 
time goes by. 
 
Having recently completed our initial investment in Apollon UK, we are actively 
pursuing to further increase our stake in this key investment further as 
discussed above. We fully appreciate that time is of the essence, and your 
board, its lawyers and indeed the Apollon UK team are working tirelessly to 
wrap up this transaction as soon as possible. 
 
The Board would like to take this opportunity to thank our shareholders, staff 
and consultants for their continued support and I look forward to reporting 
further significant progress over the next period and beyond. 
 
The directors of the Company accept responsibility for the contents of this 
announcement. 
 
David Lenigas 
 
Executive Chairman 
 
20 July 2020. 
 
For further information, please contact: 
 
AfriAg Global plc:                                                         +44 
(0) 78 7958 4153 
 
David Lenigas 
 
Corporate Adviser and Broker: 
 
Peterhouse Capital Limited                                        +44 (0) 20 
7469 0930 
 
Guy Miller / Allie Feuerlein 
 
Condensed Statement of Comprehensive Income (unaudited) 
for the 6 months ended 30 June 2020 
 
                                             6 months to    6 months to     Year ended 
 
                                                 30 June        30 June    31 December 
 
                                                    2020           2019           2019 
 
                                               Unaudited      Unaudited        Audited 
 
                                     Note          GBP'000          GBP'000          GBP'000 
 
Revenue                                                -              -              - 
 
Cost of sales                                          -              -              - 
 
Gross Profit                                           -              -              - 
 
Administration expenses                             (60)           (88)          (206) 
 
Operating (loss)                                    (60)           (88)          (206) 
 
Loans advanced to subsidiaries                         -              -        (1,953) 
written-off 
 
Investment income                                    (2)              -           (23) 
 
(Loss) before tax                                   (62)           (88)        (2,182) 
 
Tax                                                    -              -              - 
 
Retained (loss) for the period                      (62)           (88)        (2,182) 
 
Other comprehensive income 
 
Other comprehensive income for the                     -              -              - 
period net of taxation 
 
                                                       -              -              - 
Total comprehensive income 
 
Total comprehensive (loss) for the                  (62)           (88)        (2,182) 
period attributable to equity 
holders of the parent 
 
(Loss) per share (pence)                2 
 
Basic                                             (0.19)         (0.47)         (8.58) 
 
Diluted                                           (0.19)         (0.47)         (8.58) 
 
All of the revenues and loss above derived from continuing operations. 
 
Condensed Statement of Financial Position (unaudited) 
At 30 June 2020 
 
                                         30 June 2020    30 June 2019     31 December 
                                                                                 2019 
 
                                            Unaudited       Unaudited         Audited 
 
                                                GBP'000           GBP'000           GBP'000 
 
Non-current assets 
 
Trade and other receivables                         -           1,836               - 
 
Total non-current assets                            -           1,836               - 
 
Current assets 
 
Trade and other receivables                        18             628              16 
 
Available for sale assets                       1,160           1,030           1,167 
 
Cash and cash equivalents                          76             472              98 
 
Total current assets                            1,254           2,130           1,281 
 
Total assets                                    1,254           3,966           1,281 
 
Current liabilities 
 
Trade and other payables                        (561)         (1,246)           (525) 
 
Total current liabilities                       (561)         (1,246)           (525) 
 
Net current assets                                693             767             756 
 
Net assets                                        693           2,720             756 
 
Equity 
 
Share capital                                   3,171           3,011           3,171 
 
Share premium account                           8,534           8,566           8,535 
 
Share based payment reserve                       128             146             128 
 
Retained earnings                            (11,140)         (9,003)        (11,078) 
 
Total equity                                      693           2,720             756 
 
Condensed Statement of Changes in Equity (unaudited) 
for the 6 months ended 30 June 2020 
 
                                Share       Share    Share based  Retained      Total 
                               capital     premium     payment    earnings 
                                                       reserve 
 
                                   GBP'000       GBP'000       GBP'000       GBP'000       GBP'000 
 
At 31 December 2018                1,761       8,630         279     (9,047)       1,623 
 
(Loss) for the period                  -           -           -     (2,182)     (2,182) 
 
Total Comprehensive Income             -           -           -     (2,182)     (2,182) 
 
Shares issued                      1,410           -           -           -       1,410 
 
Share issue costs                      -        (95)           -           -        (95) 
 
Transfer with equity                   -           -       (151)         151           - 
 
Total contributions by and         1,410        (95)       (151)         151       1,315 
distributions to owners of 
the Company 
 
At 31 December 2019                3,171       8,535         128    (11,078)         756 
 
(Loss) for the period                  -           -           -        (62)        (62) 
 
Total Comprehensive Income             -           -           -        (62)        (62) 
 
Shares issue costs                     -         (1)           -           -         (1) 
 
Total contributions by and             -         (1)           -           -         (1) 
distributions to owners of 
the Company 
 

(MORE TO FOLLOW) Dow Jones Newswires

July 21, 2020 03:40 ET (07:40 GMT)

DJ AfriAg Global Plc Unaudited Results for the six -2-

At 30 June 2020                    3,171       8,534         128    (11,140)         693 
 
Condensed Statement of Cash Flows (unaudited) 
for the 6 months ended 30 June 2020 
 
                                            6 months to     6 months to      Year ended 
 
                                           30 June 2020    30 June 2019     31 December 
                                                                                   2019 
 
                                              Unaudited       Unaudited         Audited 
 
                                                  GBP'000           GBP'000           GBP'000 
 
Cash flows from operations 
 
Operating (loss)                                   (60)            (88)           (206) 
 
(Increase)/decrease in trade & other                (2)           (494)               1 
receivables 
 
Increase/(decrease) in trade & other                 36             788              67 
payables 
 
Net cash used in operating activities              (26)             206           (138) 
 
Investing activities 
 
Receipts on sale of AFS investments                   5               -               - 
 
Payments on purchase of AFS investment                -         (1,000)         (1,160) 
 
Net cash from investing activities                    5         (1,000)         (1,160) 
 
Financing activities 
 
Issue of share capital                                -           1,250           1,410 
 
Issue costs                                         (1)            (65)            (95) 
 
Net cash from financing activities                  (1)           1,185           1,315 
 
Net increase/(decrease) in cash and                (22)             391              17 
cash equivalents 
 
Cash and cash equivalents at the                     98              81              81 
beginning of period 
 
Cash and cash equivalents at the end of              76             472              98 
period 
 
Notes to the Condensed Interim Financial Information (unaudited) 
 
1.General information 
 
The condensed interim financial information for the period ended 30 June 2020 
has not been audited or reviewed in accordance with the International Standard 
on Review Engagements 2410 issued by the Auditing Practices Board. The figures 
were prepared using applicable accounting policies and practices consistent 
with those adopted in the statutory accounts for the period ended 31 December 
2019. The figures for the period ended 31 December 2019 have been extracted 
from these accounts, which have not been required to be delivered to the Isle 
of Man Registrar of Companies and do however contained an unqualified audit 
report. 
 
The condensed interim financial information contained in this document does not 
constitute statutory accounts. In the opinion of the directors the financial 
information for this period fairly presents the financial position, result of 
operations and cash flows for this period. 
 
The Condensed Interim Financial Information was approved by the Board of 
Directors on 20 July 2020. 
 
Statement of compliance 
 
These condensed interim financial statements have been prepared in accordance 
with International Financial Reporting Standards (IFRS) as adopted by the 
European Union with the exception of International Accounting Standard ('IAS') 
34 - Interim Financial Reporting. Accordingly, the interim financial statements 
do not include all of the information or disclosures required in the annual 
financial statements and should be read in conjunction with the Company's 2019 
annual financial statements. 
 
2.(Loss) per share 
 
The calculation of the (loss) per share is based on the (loss) attributable to 
ordinary shareholders divided by the weighted average number of shares in issue 
during the period. 
 
                                            6 months to     6 months to            Year 
 
                                                30 June         30 June     31 December 
 
                                                   2020            2019            2019 
 
                                              Unaudited       Unaudited         Audited 
 
                                                  GBP'000           GBP'000           GBP'000 
 
(Loss) attributable to equity holders              (62)            (88)         (2,182) 
of the Group 
 
Weighted average number of ordinary               31.71           18.36           25.41 
shares (millions) 
 
(Loss) per share - basic                         (0.19)          (0.47)         (8.658) 
 
(Loss) per share - diluted                       (0.19)          (0.47)          (8.58) 
 
3.Events after the end of the reporting period 
 
There are no events after the end of the reporting date to disclose. 
 
4.A copy of this interim financial statement is available on the Company's 
website: www.afriagglobal.com. 
 
 
 
END 
 

(END) Dow Jones Newswires

July 21, 2020 03:40 ET (07:40 GMT)