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Sativa Investments PLC MOU with George Botanicals

Press Release        Tuesday 17th April 2018

Sativa Investments PLC

(“Sativa” or “the Company”)

Sativa signs Memorandum of Understanding to
purchase 51% of CBD product provider George Botanicals

Sativa Investments PLC [NEX:SATI], the UK’s first medicinal cannabis investment vehicle, has signed a Memorandum of Understanding (“MOU”) with George Botanicals Ltd, a UK-based manufacturer, wholesaler and distributor of wellness CBD products, to purchase a 51 per cent shareholding from its owner, Carbon Managers Limited (“Carbon Managers”) for an expected consideration of circa £200,000. George Botanicals has been providing its customers with high quality natural CBD products since September 2017, including vape pens, balms, E-Liquids, drops and edible gels that are shipped throughout the UK and are 100 per cent laboratory tested.

As stated within section 5.3 of Sativa’s Admission Document dated 1st March 2018, the Company will seek legal advice relating to the terms and lawfulness of the Company’s proposed investment. The Board has also instructed Mazars LLP to produce a valuation report on the proposed investment, is conducting overall due diligence as laid out in the Admission Document, and all decisions made will take these professional third party opinions in to account.

Sativa’s Chief Executive Officer, Geremy Thomas, is the 100 per cent shareholder of Carbon Managers and 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 would therefore constitute a related party transaction. Geremy Thomas is not involved in any of Sativa’s decision-making process in relation to this MOU.

Geremy Thomas, founder and Chief Executive Officer of Sativa, said: “George Botanicals may well be one of Sativa’s maiden investments and could provide an excellent gateway into the UK’s fast growing CBD retail marketplace. My own original investment in George Botanicals was the precursor to the founding of Sativa as it revealed the wider opportunities across the CBD industry.

“The Company has identified two other potential transactions of a similar scale and these are now being reviewed by the Board and Sativa’s Investment Committee. As the volume and scale of potential investments increases, the Board will make sure that opportunities can be matched immediately with investment finance and will be seeking further funding rounds in the future.”

Mark Blower, Executive Director, said: “This MOU came about as the Board considers, subject to due diligence, George Botanicals to be an excellent investment opportunity and regards it as preferable that a developing business with such close parallels to Sativa is within the Company’s investment portfolio.”

CBD products are increasingly popular. For example, the latest figures from the Cannabis Trade Association (“the CTA”), state that there are 310,000 regular UK users of CBD products, with around 1,500 additional users each month. With each user spending an average of £40 per month, the predicted total annualised spend is a total of £150 million per year. Latest figures suggest around 68 per cent of the UK’s CBD users are female, with 32 per cent being male, according to the CTA.

There is also high demand for CBD products in key markets such as America. A report from Brightfield Group in August of last year estimated that the US CBD market will increase to a US$1 billion market in 2020, with CBD sales already hitting US$170 million as of 2016. British CBD product developer and provider, GW Pharmaceuticals has been able to harness the rapidly growing market in the US, as the Nasdaq-quoted company has a market capitalisation of US$3.5 billion as at 16th April 2018.

 

– Ends –

For further information please contact:

 

Geremy Thomas
Founder & Chief Executive Officer
Sativa Investments PLC
+44 (0) 20 7971 1255
enquiries@sativainvestments.com

 

NEX Exchange Corporate Adviser 
Guy Miller
Peterhouse Corporate Finance Limited
+44 (0) 20 7469 0930
gm@peterhousecap.com

 

Financial PR and IR
Julian Bosdet / Dylan Mark /Alejandra Campuzano
Abchurch Communications
+44 (0) 20 7469 4630
SativaInvestments@abchurch-group.com

 

Mark Blower
Executive Director
Sativa Investments PLC
+44 (0) 20 7971 1255
enquiries@sativainvestments.com

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.com/