Mike Harlington, Chairman of the CTA, said: “Batch testing of product is a vital part of our industry. On behalf of our members we look forward to working with the PhytoVista team.”
Sativa Investments PLC (NEX: SATI), the UK’s first medicinal cannabis investment vehicle, has agreed to purchase, for £435,000, 100 per cent of PhytoVista Laboratories , a UK-based laboratory that tests CBD oils and hemp products. The Company will pay £235,000 in cash and £200,000 worth of shares at £0.04 pence per share.
The vendor of PhytoVista is Carbon Managers Limited, of which Sativa’s Chief Executive Officer, Geremy Thomas, is the 100 per cent shareholder. Geremy Thomas and George Thomas are significant shareholders in Sativa and both are also Directors of Carbon Managers. Pursuant to the NEX Exchange Growth Market Rules for Issuers, the transaction therefore constitutes a related party transaction. Geremy Thomas is not involved in any of Sativa’s decision-making process in relation to this purchase.
PhytoVista’s laboratory equipment was procured at a significantly discounted price and purchased new today would cost at total in excess of £580,000.
In making its assessment regarding this acquisition, the independent Directors, being Noel Lyons and Mark Blower, have consulted Dr. Stuart Unger, MB,BS,(U.Lond), MRCP(UK),MRCS(ENG), a member of the Company’s Medicinal Cannabis Advisory Board. Dr Unger, having reviewed the laboratory and its equipment, has advised the Independent Directors that, in his view, the purchase price of £435,000 paid by the Company is significantly below the open market value of the assets and equipment acquired.
Mark Blower, Executive Director of Sativa Investments, said: “Every batch of medicinal cannabis including CBD oil requires stringent testing, including for cannabinoids, pesticides, heavy metals and mycotoxins, along with full testing for terpenes, residual solvents and microbiology. PhytoVista provides a UK-based laboratory facility available to all jurisdictions, already testing CBD products commercially, and of course able to service the UK market if and when regulatory changes hit the UK too.”
PhytoVista enjoys preferred partner status to the UK’s Cannabis Trades Association (“CTA”) for batch testing of medicinal cannabis products.
Following the purchase, Geremy Thomas, CEO, holds 225,000,000 Ordinary Shares in the Company, representing 50.92% of the enlarged issued share capital of the Company.
