Ananda announces that the Company has raised £350,000 (gross) and received firm commitments for a further £200,000 (gross) of convertible loan notes (“CLNs”). The CLNs will be convertible into ordinary shares in the Company (“Ordinary Shares”) at a price of 1p per share and will have a fixed life of 2 years. The CLNs bear interest at a rate of 12.5% per annum, which will be rolled up and satisfied by the issue of Ordinary Shares at the end of the 2-year term.
The subscribers are all currently shareholders of the Company.
The proceeds from the issue of CLNs will be used by Ananda’s 50% owned subsidiary DJT Plants Limited (“DJT Plants”) to fund a larger than originally contemplated footprint for its medical cannabis field trials, to fit out the facility with lab equipment, and to secure the long-term services of key technical personnel. DJT Plants was awarded a licence to grow >0.2% THC cannabis for research purposes by the UK Government Home Office in May 2021.
Melissa Sturgess, CEO of Ananda, commented “We believe we have the opportunity to become a significant participant in the medical cannabis sector by supplying UK grown carbon neutral, consistent and high quality flower and oils to the UK and international markets. There is much work to be done and the team is focused on delivering on this vision. Conducting strain stabilisation and field trials research is the first, and possibly the most important, part of the plan.”
Charles Morgan (Chairman of the Company) and Melissa Sturgess (Chief Executive Officer of the Company) have each subscribed for £125,000 of CLNs. In light of their existing interests in the Company, Charles Morgan and Melissa Sturgess have undertaken not to convert any CLNs and have agreed that no Ordinary Shares will be issued to them by way of interest payment, unless such exercise or issue is otherwise permitted by the City Code on Takeovers and Mergers.
DJT Plants is a wholly owned subsidiary of DJT Group Limited, which is owned 50/50 by Ananda’s wholly owned subsidiary, Tiamat Agriculture Limited, and Anglia Salads Limited. On 8 June 2021, Ananda announced that non-binding Heads of Terms had been agreed for the proposed acquisition by Ananda of the 50% shareholding in DJT Plants not currently owned by Ananda. A circular containing further information and convening a General Meeting to approve that acquisition will be sent to Ananda shareholders as soon as possible. A further announcement will be made at that time.
The Directors of the Company accept responsibility for the contents of this announcement.
|ANANDA DEVELOPMENTS PLC
Chief Executive Officer
|+44 (0)7463 686 497
|PETERHOUSE CAPITAL LIMITED
|+44 (0)20 7469 0930|
Market Abuse Regulation (MAR) Disclosure
The information contained within this announcement is deemed by the Company to constitute inside information. Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.