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PRESS RELEASE: Placing Update

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.

Press Release – 24th December 2019

Sativa Group Plc
(“Sativa” or “the Company” or “the Group”)

Placing Update

On 19th December the Company announced a placing and subscription to raise approximately £1.38 million. Following completion of the fundraising, the Company confirms that a total of 34,500,000 new ordinary shares and 30,825,000 unlisted and non-transferable warrants were issued. Following the fundraising, the Company has a total of 569,189,167 ordinary shares in issue.




For further information please contact:

Henry Lees-Buckley
Chief Executive Officer
Sativa Group PLC
+44 (0) 20 7971 1255
enquiries@sativagroup.co.uk
www.sativagroup.co.uk

Joseph Colliver
Chief Financial Officer
Sativa Group PLC
+44 (0) 20 7971 1255
enquiries@sativagroup.co.uk
www.sativagroup.co.uk

Cenkos Securities plc
(NEX Exchange Corporate Adviser)

Corporate Finance 
Stephen Keys / Max Gould 
+44 (0) 20 7397 8900 

 

Equity Sales 
Julian Morse
+44 (0) 20 7397 8900


Allenby Capital Limited (Broker)
Corporate Finance  
Nick Naylor / Nicholas Chambers
+44 (0) 20 3328 5656


 

Equity Sales 
Amrit Nahal
+44 (0) 20 3328 5656

 

Media Enquiries:

Abchurch Communications
Julian Bosdet
+44 (0)207 4594 4070 
+44 (0) 7771 663 886

 

 

www.abchurch-group.com
julian.bosdet@abchurch-group.com

 

Notes to Editors

Sativa Group plc is the UK’s leading quoted CBD wellness and medicinal cannabis group with three operating subsidiaries and one research entity.

George Botanicals (trading as Goodbody Botanicals) provides CBD products online and to retail markets including pharmacies, wellness stores and grocers. Goodbody Wellness is a high-street retail brand with dedicated CBD wellness stores providing a premium shopping experience to consumers. Tessellate Collective, a division of George Botanicals, is a direct-selling platform servicing consumers at home. Phytovista laboratories provides independent testing of CBD products to both external customers and fellow Group businesses.

Sativa Cultivation and Extraction holds a Controlled Drug licence and cultivates cannabis plants to fulfil its partnership agreement with King’s College London to research the impact of cannabinoids on inflammation and respiratory conditions.

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Announcement: Standard form for notification of major holdings

Press Release – 24th December 2019

Sativa Group Plc
(“Sativa” or “the Company” or “the Group”)

TR-1: Standard form for notification of major holdings

Notes to Editors

Sativa Group plc is the UK’s leading quoted CBD wellness and medicinal cannabis group with three operating subsidiaries and one research entity.

George Botanicals (trading as Goodbody Botanicals) provides CBD products online and to retail markets including pharmacies, wellness stores and grocers. Goodbody Wellness is a high-street retail brand with dedicated CBD wellness stores providing a premium shopping experience to consumers. Tessellate Collective, a division of George Botanicals, is a direct-selling platform servicing consumers at home. Phytovista laboratories provides independent testing of CBD products to both external customers and fellow Group businesses.

Sativa Cultivation and Extraction holds a Controlled Drug licence and cultivates cannabis plants to fulfil its partnership agreement with King’s College London to research the impact of cannabinoids on inflammation and respiratory conditions.

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PRESS RELEASE: Placing and subscription to raise approximately £1.38 million

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.

Press Release – 19 December 2019

Sativa Group Plc
(“Sativa” or “the Company” or “the Group”)

Placing and subscription to raise approximately £1.38 million

Sativa Group plc [NEX: SATI], the UK’s leading quoted CBD wellness and medicinal cannabis group, is pleased to announce that it has raised approximately £1.38 million (before expenses) by way of a placing and subscription of 34,500,000 new ordinary shares of 0.25 pence each (“New Ordinary Shares”) at a price of 4 pence per New Ordinary Share (the “Placing Price”) (the “Fundraising”). The Fundraising comprises a placing of 7,750,000 New Ordinary Shares (the “Placing”) and a subscription of 26,750,000 New Ordinary Shares (the “Subscription”). Application has been made for admission of the New Ordinary Shares, with trading on the NEX Exchange Growth Market (“NEX”) expected to commence on 23 December 2019 (“Admission”). Investors have also been offered the opportunity to be issued with warrants. Pursuant to the offer, a total of 31,075,000 unlisted and non-transferable warrants in the Group, exercisable at 4.75 pence (“Warrants”) may be issued to investors. Allenby Capital Limited (“Allenby Capital”) acted as sole broker on the Fundraising.
 
Transaction Highlights
• The New Ordinary Shares have been placed with employees, existing and new investors.
 
• The Placing and Subscription shares will represent approximately 6.06 per cent. of the total issued share capital of the Company, post Admission.
 
• The net proceeds of the Fundraising, which will be approximately £1.35 million, will be used by the Company to invest in the Group’s operations and provide working capital to enable the Company to move to the expected next stage of its development.  
 
Henry Lees-Buckley, Chief Executive Officer of Sativa, said: “I would like to welcome our new investors and also thank our existing shareholders for their continued support. As a great example, existing shareholder Ken Lawrence has strongly supported this fundraising with a large contribution to the overall placing.”
 
Outlook
We continue to work hard executing our strategy as we close 2019. Our new Goodbody Botanicals brand has been very well received with the high street grocers and pharmacies. We believe that our solution ideally fits the needs of consumers and retailers as this new category continues to expand. The foundation is set with our sales team and SHS Distribution (our distribution provider) meeting with key customers and planning for the coming year. We are confident that our product offer and our timing is right as we continue to ramp up sales and market share in 2020. The three location Goodbody Wellness store pilot is progressing. We continue to educate consumers on CBD, expand the product range, and optimize the marketing mix prior to executing a franchise rollout.
 
Our Tesselate Collective direct selling model has seen solid growth as we close the year and prepare for an exciting brand launch in January. Our PhytoVista laboratory business continues to deliver strong growth as the UK CBD industry expands. 
 
Taken together, we are pleased with the progress we have made this year. Traditionally in retail the Christmas season is one of the busiest trading periods but our focus is also on the many opportunities we see in our growing marketplace and we look forward to the future with confidence. 

Enquiries:

Sativa Group PLC
Henry Lees-Buckley
Chief Executive Officer
+44 (0) 20 7971 1255
enquiries@sativagroup.co.uk
www.sativagroup.co.uk

 


Joseph Colliver
Chief Financial Officer
Sativa Group PLC
+44 (0) 20 7971 1255
enquiries@sativagroup.co.uk
www.sativagroup.co.uk

Cenkos Securities plc
(NEX Exchange Corporate Adviser)

Corporate Finance 
Stephen Keys / Max Gould 
+44 (0) 20 7397 8900 

 

Equity Sales 
Julian Morse
+44 (0) 20 7397 8900


Allenby Capital Limited (Broker)
Corporate Finance  
Nick Naylor / Nicholas Chambers
+44 (0) 20 3328 5656


 

Equity Sales 
Amrit Nahal
+44 (0) 20 3328 5656

 

Abchurch Communications
Julian Bosdet
+44 (0)207 4594 4070 
+44 (0) 7771 663 886

 

 

www.abchurch-group.com
julian.bosdet@abchurch-group.com

 

Further details of the Fundraising

Introduction

The Company announces a proposed Placing and Subscription to raise approximately £1.38 million (before expenses) through the issue of 34,500,000 New Ordinary Shares at 4 pence per share. Investors have also been issued with a total of 31,075,000 Warrants in the Group.

The New Ordinary Shares to be issued pursuant to the Fundraising are to be admitted to trading on NEX which is expected to take place on 23 December 2019.

Use of proceeds

Pursuant to the Fundraising, the Company will receive gross proceeds of approximately £1.38 million. The net proceeds from the Placing and Subscription, which will be approximately £1.35 million, will be used by the Company to invest in the Group’s operations and provide working capital to enable the Company to move to the expected next stage of its development.

Details of the Fundraising and Admission

Under the Fundraising, the Company has conditionally raised approximately £1.38 million (before expenses) by way of a placing of 7,750,000 New Ordinary Shares and a subscription of 26,750,000 New Ordinary Shares with employees, existing and new investors. The Company has entered into a Placing Agreement with Allenby Capital under which Allenby Capital has agreed to use its reasonable endeavours to procure placees for the New Ordinary Shares comprised in the Placing at the Placing Price. The Fundraising has not been underwritten by Allenby Capital.

Upon Admission, the New Ordinary Shares comprised in the Fundraising will represent approximately 6.06 per cent. of the Company’s total share capital. The Placing Price represents a discount of approximately 20.79 per cent. to the closing mid-market price on NEX of 5.05 pence per existing ordinary share of the Company on 18 December 2019, being the last dealing day prior to publication of this announcement.

The Fundraising to raise a total of £1,380,000 by the issue of 7,750,000 New Ordinary Shares in the Placing and 26,750,000 New Ordinary Shares under the Subscription, in each case at the Placing Price, has been carried out within the Company’s existing share allotment authorities. Application has been made for the New Ordinary Shares to be admitted to trading on NEX and it is expected that Admission will take place on 23 December 2019. The allotment of the New Ordinary Shares is conditional, inter alia, upon Admission and the Placing Agreement becoming unconditional in all respects and not being terminated in accordance with its terms prior to Admission.

The Placing Agreement contains, inter alia, customary undertakings and warranties given by the Company in favour of Allenby Capital as to the accuracy of information contained in this document and other matters relating to the Company.

The New Ordinary Shares will rank, pari passu, in all respects with the existing ordinary shares, including the right to receive dividends and other distributions declared on or after the date on which they are issued.

It is expected that CREST accounts will be credited on the relevant day of Admission and that share certificates (where applicable) will be dispatched within 10 working days of Admission.

Pursuant to the Fundraising the Company is also offering placees and subscribers the opportunity to be issued with the Warrants, at nil cost, to subscribe for New Ordinary Shares on the following terms:

• the Warrants are exercisable at a price of 4.75 pence per New Ordinary Share; and

• the Warrants may be exercised one year after being granted for up to three years following the date of Admission.

Placees and Subscribers may apply to be issued with a number of Warrants up to the number of New Ordinary Shares they are subscribing for/acquiring in the Fundraising.

The issuance of the Warrants will be subject to Admission and receipt of funds in relation to the Fundraising. The Warrants have the rights set out in a Warrant Instrument which is being entered into separately by the Company.

Application for Admission

Application will be made to NEX for the New Ordinary Shares to be admitted to trading. It is anticipated that such admission will become effective and that dealings in the New Ordinary Shares will commence at 8.00 a.m. on 23 December 2019.

Total Voting Rights

Following Admission, the Company’s enlarged issued share capital will comprise 569,189,167 ordinary shares, with voting rights. The Company does not hold any ordinary shares in treasury. Therefore, following Admission, the total number of ordinary shares in the Company with voting rights will be 569,189,167.

These figures may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA’s Disclosure Guidance and Transparency Rules.

Notes to Editors

Sativa Group plc is the UK’s leading quoted CBD wellness and medicinal cannabis group with three operating subsidiaries and one research entity.

George Botanicals (trading as Goodbody Botanicals) provides CBD products online and to retail markets including pharmacies, wellness stores and grocers. Goodbody Wellness is a high-street retail brand with dedicated CBD wellness stores providing a premium shopping experience to consumers. Tessellate Collective, a division of George Botanicals, is a direct-selling platform servicing consumers at home. Phytovista laboratories provides independent testing of CBD products to both external customers and fellow Group businesses.

Sativa Cultivation and Extraction holds a Controlled Drug licence and cultivates cannabis plants to fulfil its partnership agreement with King’s College London to research the impact of cannabinoids on inflammation and respiratory conditions.

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Cannabis Growth Comes to LSE with First Pure-Play IPO (Bloomberg: 3rd December 2019)

Cannabis Growth Comes to LSE with First Pure-Play IPO

Published: 2019-12-03
By Kat Van Hoof (Bloomberg)

Though medicinal cannabis was legalised a year ago in the U.K., capital markets activity has been largely limited to fringe trading venues. One company preparing to make the jump to the London Stock Exchange could bust the sector wide open.

Cannabidiol and medicinal cannabis company Sativa said it will look to list on LSE’s junior market AIM early next year, the first initial public offering of the sort for Europe’s largest exchange. While already listed on the lesser-known NEX Exchange, the company “had numerous institutional shareholder requests” to move to AIM, said Chief Executive Officer Henry Lees-Buckley.

NEX isn’t subject to the same regulatory standards as LSE and the stocks listed there are often too illiquid for most institutions to invest in. The sector is primed for growth as public perception and legislation is turning in its favour. Banks in Europe have been gearing up for a boom in listings, hiring bankers and beginning research coverage, though the deals have been slow to materialise. Marijuana stocks are more established in Canada and the U.S., where the world’s largest weed company Canopy has been listed since 2014. “The European market is more nascent and most local companies are smaller as a result,” said Tristan Gervais, head of European cannabis investment banking at Canaccord Genuity. A Cenkos note estimates that the global pot market could be worth $300 billion in revenue per annum by 2030, with medicinal products alone accounting for $75 billion. Some local investors have turned to weed companies in North America and are familiar with the sector. They are open to investing in Europe, but are “keen to see more companies listed on main exchanges such as the LSE,” said Henry Fitzgerald- O’Connor, managing director at Canaccord Genuity. Much of the North American market focuses on recreational weed, which remains illegal in Europe.

In Britain, companies can only legitimately make highly regulated pharmaceutical and medicinal products or sell popular products such as CBD oil as a food supplement, regulated by the Food Standards Agency under the European Union’s Novel Food directive. However, pot stocks in the U.S. and Canada have not been without teething issues and investors should be wary of the comedown. Following exponential growth, Canadian stocks in the sector lost half their value between March and November amid disappointing results and regulatory issues. Even so, more companies will want to follow in Sativa’s footsteps, with “several IPOs” expected next year, Canaccord’s Gervais said. “European investors will be looking for sound business models, expecting visibility on revenue and profits,” said Fitzgerald-O’Connor.

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Sir Alasdair Breckenridge - passed away 12th December 2019

We are saddened to report that Sir Alasdair Breckenridge has passed away on 12th December 2019.

A native of Angus, Scotland, he studied medicine at the University of St Andrews, before working as a lecturer then senior lecturer at the Hammersmith Hospital and at the Royal Postgraduate Medical School from 1964 to 1974, after which he was professor of clinical pharmacology at the University of Liverpool until 2002.

Sir Alisdair served as chair of the Medicines and Healthcare products Regulatory Agency from 2003; as a member of the Committee on Safety of Medicines from 1982 to 2003 (being chairman from 1999 to 2003); and as a member of the Medical Research Council from 1992 to 1996.

In 2005 he was appointed chair of the Emerging Science and Bioethics Advisory Committee. He was appointed Commander of the Order of the British Empire (CBE) in the 1995 Birthday Honours for services to medicine and to health care and knighted in the 2004 New Year Honours for services to medicine. He was also elected a Fellow of the Royal College of Physicians (FRCP), a Fellow of the Royal College of Physicians of Edinburgh (FRCPE), a Fellow of the Royal Society of Edinburgh (FRSE), and a Fellow of the Academy of Medical Sciences (FMedSci).

Sir Alasdair was appointed to Sativa’s Scientific Advisory Board in July 2018 and we have been honoured to work with him. Sir Alasdair has been invaluable member of the Sativa team and will be fondly missed.

We send our condolences to his family at this sad time.

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INTERVIEW: Sativa Group ‘Adding serious horsepower to high street efforts (Directors Talk)

Sativa Group (NEX: SATI) CEO Henry Lees-Buckley joins DirectorsTalk to discuss its latest update to the market. Henry explains how two new appointments will help to strengthen its position, updates us on the Cannabis cultivation project and why they aim to be on the London Stock Exchange.

Sativa Group PLC joined the NEX Exchange on 29th March 2018 as the first UK listed medicinal cannabis investment vehicle. Since then, the Company has changed its business strategy to capitalise on changes in the UK and European laws and regulations surrounding the cannabis industry.