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Press Release 21st September 2018
The information contained within this announcement is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.
Sativa Investments PLC
(“Sativa” or the “Company” or the “Group”)
Medicinal cannabis group Sativa enters joint venture with Lexamed GmbH as it pursues its pan-European seed to consumer strategy
Sativa Investments PLC (NEX: SATI), the UK’s first medicinal cannabis investment vehicle, has established a joint venture with German-based Lexamed GmbH (“Lexamed”), forming a new German medicinal cannabis company named Sativa Germany GmbH (“Sativa Germany”), which will secure German wholesale, import and export licences for the distribution of medicinal cannabis products. The formation of Sativa Germany is subject to ratification by the German courts.
Whilst it is intended that, in due course, the medicinal cannabis products sold by Sativa Germany will be supplied by Sativa from the UK, this is subject to Sativa successfully applying for a Home Office Medicinal Cannabis licence. Sativa Germany will however source product from any jurisdiction where it is regulatorily accepted.
There will also be a Sativa office set up in Stuttgart for the sale of CBD products to be supplied by theGroup’s subsidiary, George Botanicals Ltd.
Sativa will initially invest €80,000 into the joint venture project as part of its 60 per cent majority shareholding in Sativa Germany, which may then increase to a maximum investment of €250,000 once the German licence has been granted to the Group.
Germany allowed the use of medicinal cannabis by prescription in March 2017, and since then the demand for the product has developed exponentially, with the German market now one of the largest in Europe. Sales for medicinal cannabis in Germany for 2018 are expected to be at least €64 million, and the market continues to grow.
Geremy Thomas, founder and Chief Executive Officer of Sativa, said: “Initially, Sativa Germany has secured office space in Stuttgart and are actively recruiting sales staff to exploit the growing demand
for CBD products in Germany. Once regulatory compliances are met, Sativa will supply top quality medicinal cannabis products to the German market.
“This is an important step for the Company, as it allows an entry point in to the key German market to help continue its seed to consumer strategy.”
The Directors of the Company accept responsibility for the contents of this announcement.
– Ends –
For further information please contact:
Founder & Chief Executive Officer
Sativa Investments PLC
+44 (0) 20 7971 1255
NEX Exchange Corporate Adviser
Peterhouse Corporate Finance Limited
+44 (0) 20 7469 0930
Financial PR and IR
Julian Bosdet / Dylan Mark /Alejandra Campuzano
+44 (0) 20 7469 4630
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 focuses 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. 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.
Sativa Investments has four investments to date including Canadian-based and dual-listed emerging global pharmaceutical company, Veritas Pharma Inc., Toronto-based Pharma-Tech company Rapid Dose Therapeutics Inc., which owns the patent-pending proprietary QuickStripTM technology, UK- based CBD products provider George Botanicals, and PhytoVista Laboratories, a UK testing laboratory meeting the need for regulatory and batch testing of products such as CBD oil.
Sativa is also focussed on researching and developing medicinal cannabis products by funding university research grants of medicinal cannabis through its Sativa Foundation.
The Company’s Board and Medicinal Cannabis Advisory Board have a combined 60 years’ industry experience, with significant pharmaceutical strength and experience and extensive contacts in the industry. Their extensive skills range from capital fund raisings, medical research, and start-ups, to pharmaceutical development.
For more information on Sativa Investments, please visit: www.sativagroup.co.uk