Announcement
Sativa Investments : UK's first medicinal cannabis Investment IPO
RNS Number : 3171J
Sativa Investments PLC
29 March 2018
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Press release
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Thursday 29 March 2018 |
Sativa Investments PLC
("Sativa" or "the Company")
Admission to NEX Exchange Growth Market having raised £1.1 million
Sativa Investments PLC, the UK's first medicinal cannabis Investment Vehicle, is pleased to announce that trading in its Ordinary Shares will commence at 8.00 a.m. today on the NEX Exchange Growth Market ("Admission"), under ticker SATI and ISIN number GB00BFX17474.
Sativa will look for well-placed opportunities within the dynamic regulatory environment of the Medicinal Cannabis sector and the Company's investment strategy will focus 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 accepted, with an initial focus on Canada. The Company has committed to an independent legal review prior to each investment to verify compliance with the prevailing regulatory environment.
Key highlights
· On Admission the Company will have estimated net cash, including the Subscription proceeds, of £1,548,040
· The Company has raised £1,100,000 pursuant to the Subscription, to invest in and acquire control of certain target companies, although it may also consider acquiring non-controlling shareholdings in targeted Medicinal Cannabis businesses, following advice from the Company's Medical Cannabis Advisory Board.
· Sativa Investments will seek returns from the dynamic regulatory environment surrounding Medicinal Cannabis and will invest in well-placed businesses involved in production, testing and compliance, research and development, including pharmacology, commercialisation and sales and marketing of Medicinal Cannabis.
· While there are a large number of active cannabinoids found in Cannabis, Medicinal Cannabis has two cannabinoid components that can potentially treat human pain, disease and symptoms; tetrahydrocannabinol (THC) and cannabidiol (CBD).
· These two components of Medicinal Cannabis can potentially treat muscle spasticity and nausea, along with treating chronic pain by activating pathways in the central nervous system, which work to block pain signals through cannabinoid receptors. As outlined by Leafscience, a provider of health and science information to Cannabis consumers and professionals, the product can also reduce the pain and discomfort of diseases such as cancer, glaucoma, liver disease, Parkinson's disease, traumatic brain injury, spinal cord injury and multiple sclerosis. It is also believed to assist patients with post-traumatic stress disorder (PTSD), and relieves convulsion and inflammation.
· The Medicinal Cannabis sector is growing rapidly across the globe. For example, the Medicinal Cannabis market in Ontario, Canada, is projected to climb from CA$379 million in 2018 to CA$2.22 billion by 2021, according to Brightfield Group projections, being an increase of 485 per cent increase in three years. The demand for Medicinal Cannabis is soaring also in the Netherlands where, over the past five years, the number of doctor's prescriptions for Medicinal Cannabis grew by more than 400 per cent to over 50,000 in 2017, according to figures from the Foundation for Pharmaceutical Statistics (SFK). The use of Medicinal Cannabis, which is only available with a doctor's prescription, took off in the Netherlands in 2016 with an increase of 75 per cent. Jan Dirk Kroon of the SFK estimates that around 8,000 people in the Netherlands use Medicinal Cannabis.
Management with strong track record
The Company's Board and Medicinal Cannabis Advisory Board have a combined 60 years' industry experience with strong and extensive contacts in the industry, with significant pharmaceutical strength and experience.
Geremy Thomas, founder and CEO of Sativa, who together with family members has invested £785,000, £560,000 unconditionally at 0.25p per share and, pursuant to the Subscription, a further £225,000, said: "Our decision to list on the NEX Exchange Growth Market makes both strategic and commercial sense as the market has great access to funding, regulation that fits Sativa's needs and the fact that NEX's Growth Market is an emerging market, which matches Sativa's start-up nature and culture. We are delighted to see such high levels of investor demand and we now look forward to working with our shareholders and developing the Company.
"The Company's Board and Medicinal Cannabis Advisory Board strongly believes that the dynamic regulatory environment of Canada's Medicinal Cannabis sector is the standard-bearer and will take off in key markets, as we are already seeing in the Americas and Europe, along with the strong groundswell of public support."
Directors Shareholdings
On Admission the interests of the Directors and their immediate families and, so far as they are aware having made due and careful enquiries, of persons connected with them (all of which are beneficial, unless otherwise stated) (so far as is known to the Directors, or could with reasonable diligence be ascertained by them) (within the meaning of sections 252 to 254 of the UK Companies Act 2006) in the Issued Share Capital are and will be as follows:
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Director |
Number of Ordinary Shares on Admission
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% of Issued Share Capital |
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Geremy Thomas |
224,000,000 |
52.97 |
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Mark Blower |
6,000,000 |
1.42 |
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Noel Lyons |
3,000,000 |
0.71
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Notifiable Interests
In addition to the Directors holdings disclosed above, the Company has been notified or is aware of the following holdings which will, following Admission, represent more than 3 per cent. of the Issued Share Capital or voting rights of the Company:
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Name |
Number of Ordinary Shares on Admission
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% of Issued Share Capital
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Andrew McDonald
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18,000,000
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4.26
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Clive Lonsdale |
18,000,000 |
4.26 |
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James Curtis |
18,000,000 |
4.26 |
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Acqam International |
18,000,000 |
4.26 |
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George Thomas |
18,000,000 |
4.26 |
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BMAK Investments Ltd* |
18,000,000 |
4.26 |
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*BMAK Investments Ltd participated in the Subscription, prior to publication of the Admission Document, through an investment of £100,000 at the Subscription Price, reference to which was inadvertently omitted from the Admission Document.
The Company has thus raised £1,100,000 before expenses though the issue of 198,900,000 Ordinary Shares. The Company has net funds of approximately £1,548,040 after all expenses pertaining to admission to the NEX Exchange Growth Market.
Broker Option
The Directors have agreed to make available their allocated options for sale through Peterhouse should there be sufficient demand in the market following Admission and may also approve the issue of options to Peterhouse, at the discretion of the Directors, subject to demand and agreement with Peterhouse.
Total Voting Rights
Following the issue of the 198,900,000 Subscription Shares, the Company has 422,900,000 Ordinary Shares of 0.25p in issue, which also represents the total number of voting rights in the Company. This figure should be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FCA's Disclosure and Transparency Rules.
The definitions used in this announcement have the same meaning as they have in the Admission Document.
The Directors of the Company accept responsibility for the contents of this announcement.
- Ends -
For further information please contact:
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Geremy Thomas Founder & CEO Sativa Investments PLC +44 (0) 20 7971 1255 |
Mark Blower COO & Finance Director Sativa Investments PLC +44 (0) 20 7971 1255 |
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NEX Exchange Corporate Adviser Guy Miller Peterhouse Corporate Finance Limited +44 (0) 20 7469 0930 |
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Financial PR, IR & general media enquiries Julian Bosdet / Dylan Mark /Alejandra Campuzano Abchurch Communications +44 (0) 20 7469 4630 |
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Notes to Editors
Sativa will look for well-placed opportunities within the dynamic regulatory environment of the Medicinal Cannabis sector and the Company's investment strategy will focus 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 accepted, with an initial focus on Canada. The Company 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 a proposed investment may range from a minority position, to a controlling interest, or to 100 per cent ownership. The ventures that Sativa intends to acquire can either be public or private.
The Company's Board and Medical Cannabis Advisory Board have a combined 60 years' industry experience with strong and extensive contacts in the industry, with significant pharmaceutical strength and experience. Their extensive skills range from capital fund raisings, medical research, and start-ups, to pharmaceutical development.
For more information on Sativa Investments, please visit: https://sativainvestments.co.uk/
This information is provided by RNS
The company news service from the London Stock Exchange
END
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