Press Release Tuesday 3rd July 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”)
Sativa agrees to the 100% purchase of PhytoVista Laboratories
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 (“PhytoVista”), 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 (“Carbon Managers”), 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.
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.”
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.
The Directors of the Company accept responsibility for the contents of this announcement.
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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 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. 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’ first two deals include Canadian-based, tri-listed, emerging global pharmaceutical company,Veritas Pharma Inc., and Toronto-based Pharma-Tech company that owns the patent-pending proprietary QuickStrip™ technology, Rapid Dose Therapeutics Inc.
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://sativagroup.co.uk/