Sativa Investments PLC (NEX: SATI), which joined the NEX Exchange Growth Market in March 2018 as the UK’s first medicinal cannabis investment vehicle, today announced a strategic update ahead of the Company’s announcement of audited results for the year ended 31 December 2018, scheduled for 13 May 2019.
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.”
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 £85,000, 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.