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Andrew Hore – Quoted Micro 14 June 2021

AQUIS STOCK EXCHANGE

Clarify Pharma (PSYC) joined the Access segment on 11 June and raised £1.96m at 2.5p a share. Prior to flotation, Clarify Pharma raised £100,000 at 0.1p a share and £1.19m at 1p a share. Pro forma NAV, after flotation expenses, is £2.97m. That is equivalent to 1p a share. Management includes Michael Edwards and Jonathan Bixby from NFT Investments (NFT) and other recent Aquis new admissions. Clarify Pharma will focus on investing in psychedelic medicine businesses and products in the UK and Canada. The share price ended the day at 2.875p (2.75p/3p).

Angelfish Investments (ANGP) is changing its Igraine (KING) and DiscovOre (ORE) is subscribing £2m at 2.5807p a share (post consolidation) for a 24.6% stake. Burns Singh Tennent-Bhohi is a director of both companies. Angelfish will become a biotech and medtech investor and it will have co-investment rights with Excalibur Healthcare Services, which is run by Professor Sir Chris Evans. He will also become an Angelfish director. Angelfish will take a 2% stake in Excalibur Medicines Ltd, which has the rights to a potential drug for diabetics suffering from Covid-19. Angelfish will pay £600,000 in cash plus issue £500,000 of deferred shares at 5p each, which could be converted into ordinary shares is the trial of the potential Covid-19 treatment is successful. Every 1,000 existing shares will be consolidated into one new share.

Ananda Developments (ANA) plans to acquire 100% of cannabis grower DJT Plants Ltd. Ananda already owns 50% and it will issue 790.5 million shares, equivalent to £7.3m, to Anglia Salads for the other 50%. Stuart Piccaver will become joint chief executive of Ananda.

KR1 (KR1) has invested the equivalent of $4.45m in KSM tokens in Shiden Network, a smart contract platform on Kusama. Once the parachain auction is completed the KSM will be returned and KR1 will receive Shiden tokens. KR1 made a similar investment in the Karura crowdloan.

Rural Broadband (RBBS) has 2,571 monthly fee-paying clients for its broadband services. Annual run rate revenues are £820,000.

Veni Vidi Vici (VVV) had £272,000 in cash and NAV of £359,000 at the end of 2020. The company has since raised £220,000 at 50p a share. This will help finance the A$300,000 that the company has to spend over the next three years on the 51% owned Shangri La gold, copper and silver project.

Vulcan Industries (VULC) raised £100,000 at 1.675p a share.

Virgata Services has extended its bid for Walls & Futures REIT (WAFR) until 21 June. Acceptances currently total 9.3% of the share capital.

UK SPAC (SPC) has withdrawn its application for a move from AIM to Aquis.

AIM

NWF (NWF) is trading ahead of expectations and net debt will be lower than anticipated at the end of May 2021. The fuels division has a strong year thanks to the cold winter. The food distribution business improved its trading, but the unstable patterns of demand are hampering profit. Feed margins were under pressure.

AB Traction has increased its stake in construction dispute and property services provider Driver Group (DRV) from 17.32% to 18.27%. That was after Driver reported a 11% decline in revenues to £25m, while underlying pre-tax profit fell from £1.3m to £1m. The comparatives were tough, but gross margins were maintained at 25.6%. Europe and the Americas performed strongly, but the other regions lost money. Net cash was £7.2m at the end of March 2021. A full year pre-tax profit of £2m, down from £2.5m, is forecast.

Cambria Automotive (CAMB) is recommending an 80p a share cash bid, which values the motor dealer at £80m.

Mind Gym (MIND) is increasing its development spending on digital assets, but the benefits are yet to show through. Even so, the learning and development services company returned to profit in the second half. Revenues began growing again in the fourth quarter. In the year to March 2021, revenues were 18% lower at £39.4m, while underlying pre-tax profit slumped from £6.6m to £300,000. Even so, there was £5.9m of cash generated from operations. This level of cash generation will not be repeated, but advance payments mean that cash generation is impressive. There is £16.8m in the bank, after spending £2.8m on new digital products. Two of these products will launch later this year. The first quarter is well ahead of the same period last year.

Drug discovery company Redx Pharma (REDX) plans to move its main cancer treatment, RXC004, into phase 2 studies later this year after the phase 1 safety study is completed. This treatment is designed to prevent tumour growth. The main focus is colorectal, pancreatic and biliary cancer. Lung fibrosis treatment RXC007, the ROCK2 selective inhibitor, has started clinical trials. Redx still had £39.9m at the end of March 2021 and this cash should last until the end of 2022.

MAIN MARKET

JLEN Environmental Assets Group Ltd (JLEN) started investing in battery storage projects in the year to March 2021. JLEN generated £39.5m in cash from operations, up from £36.2m the year before. The proposed increase in UK corporation tax from 19% to 25% has reduced the NAV by around £20m due to its effect on deferred tax provisions. NAV was cut from 97.5p a share to 92.2p a share. The total dividend was 6.76p a share in 2020-21.

Associated British Engineering (ASBE) lost £49,000 in the six months to March 2021. NAV is £1.06m, including £383,000 in cash.

Sure Ventures (SURE) has raised £662,500 at 100p a share. The NAV was 92.06p a share at the end of March 2021.

Cellular Goods (CBX) has secured a supply agreement with Willow Biosciences, which will supply ultra-pure, biosynthetically-produced cannabigerol for use in the company’s cannabinoid-based skin care products.

Aircraft leasing firm Avation (AVAP) generated revenues of $91m in the nine months to March 2021. Key customers are starting to run more flights.

Andrew Hore

Ananda Developments (ANA) – Proposed 100% ownership of DJT Plants Limited

Proposed move to 100% ownership of DJT Plants Limited

The Directors of Ananda announce that non-binding Heads of Terms have been agreed for the proposed acquisition by Ananda of the 50% shareholding in DJT Plants Limited (“DJT Plants”) not currently owned by Ananda (the “Acquisition”).

Ananda intends to become a significant participant in the medicinal cannabis sector as a UK-based grower of consistent, high quality medicinal cannabis for domestic and international markets. The Directors believe that the Acquisition represents a major step towards fulfilling this objective.

HIGHLIGHTS

  • On 17 May 2021, DJT Plants was granted a licence to grow >0.2% THC cannabis for research purposes by the UK Government Home Office (the “Licence”)
  • DJT Plants is a wholly owned subsidiary of DJT Group Limited (“DJT Group”), which is owned 50/50 by Ananda’s wholly owned subsidiary, Tiamat Agriculture Limited, and Anglia Salads Limited (“Anglia Salads”)
  • Consideration for the Acquisition amounts to £7.3 million and will be satisfied by the issue of  790,538,866 ordinary shares of 0.2p each in Ananda (“Ordinary Shares”) to Anglia Salads (the “Vendor”)
  • The consideration values each partner’s shareholding in the licence equally.  It reflects the Directors’ belief that the Licence represents the majority of Ananda’s current market value and that DJT Plants has the potential to generate significant value and future revenues for the Company
  • On completion of the Acquisition, it is proposed that Stuart Piccaver and Simon Goddard, directors of both Anglia Salads and its parent company, JEPCO Limited (“JEPCO”), will join the Board of Ananda as Joint Chief Executive Officer and Chief Financial Officer, respectively

Reason for the Acquisition

The Directors and the Vendor believe that the Acquisition will be mutually beneficial. In particular, they believe that the Acquisition has the potential to deliver the following important advantages:

  • captures 100% of the potential commercial growing revenues in Ananda
  • ensures that knowhow and developed Intellectual Property is owned by Ananda
  • consolidates ownership, management and operation of the Licence and the business in a single entity
  • enables working capital requirements to be managed at the DJT Plants’ level
  • secures the services of two senior executives with 4 years’ direct experience growing medicinal cannabis in the UK, as well as 30 years of specialist horticultural experience and significant success in horticultural innovation
  • secures the growing and agronomic operations services of JEPCO (the 51% owner of Anglia Salads) on a cost-plus basis, meaning Ananda has the ability to execute its strategy on a ‘turn-key’ basis, rather than having to employ, train, manage and retain its own workforce
  • gives Ananda immediate access to formal quality systems and procedures which are vital for the cultivation of consistent and high-quality medicinal cannabis

Ananda CEO, Melissa Sturgess, commented:

“Our job now is to stabilise 65 strains of cannabis, conduct research field trials and ready ourselves for the proposed transition to commercial medicinal cannabis growing, subject to further licensing from the Home Office.  Stuart has built his agricultural business into the success it is today, as the second largest grower of specialist salad leaves in the UK.  He was also responsible for his company’s success growing medicinal cannabis for GW Pharmaceuticals.  I look forward to working with him to achieve our objective of being a grower of consistent and high-quality medicinal cannabis for domestic and international markets.”

Incoming Joint-CEO, Stuart Piccaver, commented:

“Following on from the success of obtaining the Home Office licence, it’s now time to turn our vision and plans into reality. I have led 4 significant end to end horticultural developments for blue chip companies in the last 8 years. The basis of these has been to provide solutions to supply chain issues and, as Melissa has commented, one of these was in cannabis. This has given us extensive knowledge on protected growing structures, growing mediums, crop/climate manipulation and the pure practicalities of commercialising various crops. I look forward to joining Melissa and the Ananda team to draw on that experience to ensure our success.”

 

Background

On 18 May 2021, Ananda announced its 50% owned subsidiary, DJT Plants, had been granted a licence to grow >0.2% THC cannabis for research purposes by the UK Government Home Office. The Licence allows DJT Plants to develop a broad range of cannabis genotypes (“strains”) through a genetic stabilisation and field trials programme, with the goal of growing these genotypes in the UK.

DJT Plants intends to produce a line of 65 stable strains through back crossing six generations from a varied portfolio of 13 seeds that exhibit a range of THC/CBD and other cannabinoid, terpene and flavonoid profiles. The focus will be on strains with metabolic profiles relevant to various health indications which have shown to be receptive to treatment with medical cannabis and for which NICE (the National Institute for Clinical Excellence) has called for further research.  They will also be filtered for agronomical traits such as yield and resistance to pathogens, moulds, etc.

The intent is to give DJT Plants a number of its own stable cannabis strains, suitable for growing in UK conditions, with metabolic profiles which have been identified as useful for treating certain medical conditions.

Information on the proposed Directors

On completion of the Acquisition, it is proposed that Stuart Piccaver and Simon Goddard, two highly experienced horticultural, and specifically cannabis cultivation, executives, will join the Board of Ananda.

Stuart Piccaver holds a BSc (Hons) and is a third-generation farmer and CEO of JEPCO and a director of Anglia Salads. With a background and interest in marketing and innovation, he has been the driving force for many of the leading agricultural initiatives and successes of JEPCO and its associated companies.

From a standing start in July 2014, he led the team that proved a concept to grow natural season cannabinoids in the UK, lowering the cost of production by 78%. The project grew 5 hectares under cover to fully assess and master the dynamics of UK production. The project proved its feasibility and created a growing blueprint for a highly scalable production technique.

Simon Goddard is a qualified accountant and has been CFO of  JEPCO and Anglia Salads for 19 years. He is responsible for all the strategic, financial and operational aspects of the companies and is also responsible for the Group’s CSR and technical quality standards.

During the initial build-out phase of the Company’s cannabis growing facility, salaries due to Stuart Piccaver and Simon Goddard will be accrued.

Terms of the Acquisition

Pursuant to the proposed terms of the Acquisition, Ananda will acquire the 50 ordinary shares of £1.00 each in DJT Group which it does not currently own, for consideration of £7.3 million, which will be satisfied by the issue of 790,538,866 Ordinary Shares (the “Consideration Shares”), at a deemed price of 0.925p per share (the closing price of Ordinary Shares on 7 June 2021).

The transaction is conditional, amongst other things, on:

  • The signing of a legally binding sale and purchase agreement to implement the Acquisition (which will include customary restrictive covenant and non-compete provisions)
  • Approval of the Acquisition by Ananda’s shareholders at a general meeting; and
  • The receipt of tax advice with respect to certain structural aspects of the transaction

If the Acquisition proceeds to completion on the terms outlined above and no additional Ordinary Shares are issued by the Company in the intervening period, the Vendor will be interested in 790,538,866 Consideration Shares, representing approximately 50% of the Company’s enlarged issued share capital.

Under Rule 9 of the City Code on Takeovers and Mergers (the “Code”), and based on the interest of the Vendor outlined above and on the current issued share capital of Ananda, the allotment of the Consideration Shares will be subject to the Takeover Panel granting the Vendor a waiver of the obligations which would otherwise oblige it to make a general offer to shareholders under Rule 9 of the Code (“Rule 9 Waiver” “Whitewash”); any such Rule 9 Waiver would be subject to the approval of independent shareholders in Ananda at a General Meeting.

There can be no guarantee that such shareholder approval will be obtained or that the Takeover Panel will grant the Rule 9 Waiver required to effect the Acquisition.

DJT Group owns a 100% interest in DJT Plants, which holds the Licence, and 100% of Aristaeus Elements Ltd, a company with certain knowhow about cannabis extraction.

Additional Information

As announced on 18 May 2021, the £300,000 raised by the Company in February 2021 has been allocated to DJT Plants to commence the build out of its research facility at the Licence location. An update on progress will be released in due course.

Ananda continues to hold 2% of the equity in cannabis conference platform and start up adviser iCAN-Israel Limited, and 15% of novel medicinal cannabis vaping technology company Liberty Herbal Technologies Limited.  An update on these investments will be released in due course.

General Meeting

A circular containing further information and convening a General Meeting to approve the Acquisition will be sent to Ananda shareholders as soon as possible.  A further announcement will be made at that time.

-Ends-

The Directors of the Company accept responsibility for the contents of this announcement.

ANANDA DEVELOPMENTS PLC
Chief Executive Officer
Melissa Sturgess

Investor Relations
Jeremy Sturgess-Smith

+44 (0)7463 686 497
ir@anandadevelopments.com
PETERHOUSE CAPITAL LIMITED
Corporate Finance
Mark Anwyl
Allie Feuerlein

Corporate Broking
Lucy Williams
Duncan Vasey

+44 (0)20 7469 0930

Ananda Developments Plc (ANA) – Total Voting Rights

TOTAL VOTING RIGHTS

In accordance with the Financial Conduct Authority’s Disclosure and Transparency Rules, Ananda announces that the Company has 793,872,220 ordinary shares of 0.2p each in issue (“Ordinary Shares”), each share carrying the right to one vote.

This figure of 793,872,220 Ordinary Shares 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 to their interest in, the share capital of the Company under the FCA’s Disclosure and Transparency Rules.

-Ends-

The Directors of the Company accept responsibility for the contents of this announcement.

ANANDA DEVELOPMENTS PLC
Chief Executive Officer
Melissa Sturgess

Investor Relations
Jeremy Sturgess-Smith

+44 (0)7463 686 497
ir@anandadevelopments.com
PETERHOUSE CAPITAL LIMITED
Corporate Finance
Mark Anwyl
Allie Feuerlein

Corporate Broking
Lucy Williams
Duncan Vasey

+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.

Andrew Hore – Quoted Micro 24 May 2021

AQUIS STOCK EXCHANGE

British Virgin Islands-based Boanerges (BNRG) is a SPAC seeking to acquire technology companies involved in big data, machine learning, telematics and internet of things. Boanerges floated on 17 May 2021 when it raised £500,000 at 20p a share. In April, an initial £51,500 was raised at 0.1p a share and a further £75,000 was raised at 10p a share. That means that pro forma cash is equivalent to 1p a share. The shares are trading at 24.5p (23p/26p).

Bid expenses could cost Walls & Futures REIT (WAFR) up to £210,000. The 50p a share bid is rejected by the company’s board, which says that it represents a 51% discount to NAV and a 62% discount to the market value of its properties, after cash is deducted. Management is offering shareholders the opportunity to vote on a winding up of the company if the bid does not become unconditional. This would require 75% of the votes to be carried.

Brewer Adnams (ADB) continued to be hit by lockdowns in the six months to March 2021. Online demand for the beer brands remained strong and management says that bookings for pubs are building up since the lockdown was eased. There is even hope that people holidaying in the UK will boost its hotels.

Early Equity (EEQP) is acquiring Farina Investments, which provides services to the insolvency sector, for £1.9m in shares at 0.5p each. This is effectively a business that is involved in the acquisition and disposal of distressed assets. The deal will increase Early Equity’s stake in Lotto Studios, which is launching a social casino game with ITV Studios, to 20%. The deal also brings a 10% stake in life sciences company Pure Sea Nutrients. A further £90,000 has been raised in a placing at 0.5p a share.

The AGM has been postponed and there were some irregularities in the voting process.

Incanthera (INC) is continuing with discussions with two global cosmetic companies for its Sol skin cancer technology. The idea is to use Sol as a skin cream to protect sun damaged skin. Net cash was £960,000 at the end of March 2021. Incanthera recently raised £1.14m at 12p a share. There is enough cash to get into the second half of 2022. There could be an upfront payment from a deal, but the big money will take longer to be generated. More cash will be required to push ahead with other products.

Apollon Formularies (APOL) says that joint testing with Aion Therapeutic reveals that their combined formulations are effective in killing HER2+ breast cancer cells grown in 3D cell culture. HER2+ accounts for one-fifth of breast cancer. Apollon’s Jamaican medicinal cannabis formulations were particularly good at killing living HER2+ cancer cells directly.

Ananda Developments (ANA) says that its 50%-owned subsidiary DJT Plants has been granted a licence to grow >0.2% THC cannabis for research activities by the UK government. Building of the research facility will commence immediately. There will be 65 strains grown at the facility and plans to extract distil and isolate cannabis products. The business had previously grown cannabis for GW Pharma. The focus will be neuropathic pain, Parkinson’s Disease and epilepsy. Directors Charles Morgan and Melissa Sturgess have each been issued with 100 million shares as contingent consideration following the grant of the licence.

Gledhow Investments (GDH) had net assets of £2.35m at the end of March 2021, up from £907,000 12 months earlier. That includes £374,000 in cash.

Vulcan Industries (VULC) subsidiary M+G Olympic has won more than £500,000 of orders for swimming pools.

All Star Minerals (ASMO) is negotiating the acquisitions of a company with gemstone assets and another company with diamond assets. This is an area where the management team has experience. Further cash will need to be raised to complete due diligence.

NQ Minerals (NQMI) has raised a further £224,000 at 7p a share. Chief executive Walter Doyle has left the company. Wishbone Gold (WSBN) has raised £1.4m at 10p a share and each share has one-half of a warrant exercisable at 20p a share. Wishbone will refine the locations of drill targets at the Red Setter projects and then use the cash to finance the drilling. Sativa Wellness Inc (SWEL) has completed a placing raising $4.61m at 7.875 cents per unit. A unit comprises one share and one-half of a warrant exercisable at 10.5 cents a share. Love Hemp (LIFE) has raised £348,000 via the exercise of warrants at 1p each.

AIM

Compliance and energy saving services provider Sureserve (SUR) reported an underlying interim pre-tax profit was 31% higher at £4.4m. Energy saving’s profit contribution fell by three-fifths, but higher margins for the much larger compliance division meant a much higher profit. A full year pre-tax profit of £12.9m is forecast.

Tracsis (LSE: TRCS) should get additional opportunities from the Williams report on the rail industry. The report was in line with expectations. Great British Railways will take up the overall responsibility for the integrated rail network. The reforms are due in 2023, although there could be delays. Things like digital tickets, simplified fares and season ticket flexibility provide opportunities for Tracsis.

Accrol (ACRL) says that adjusted earnings for 2020-21 will be in line with expectations even though sales will be lower than expected due to a decline in the market. Accrol has 16% of the toilet tissue market and it should return to growth when the comparatives do not include the Covid-19 related panic buying. There are plans to increase capacity at the main Leyland plant.

Surgical devices developer Creo Medical (CREO) says trading was ahead of expectations in the first quarter of 201. This has led to a 10% increase in forecast revenues to £22.1m. There will still be a loss of £30m. The recovery in elective surgery is increasing demand for surgical devices.

Nexus Infrastructure (NEXS) is building up its electric vehicle infrastructure business and it could move into profit in the next year. The TriConnex utility connections business is also growing revenues, although profit was flat. However, group revenues were one-quarter lower at £64m, because civil engineering business Tamdown continues to report lower revenues and profit. Nexus did make an overall operating profit. The 2020-21 pre-tax profit has been upgraded to £3.6m and it could reach £6m next year.

PerkinElmer has made a 382p a share bid for Immunodiagnostic Systems Holdings (IDH).The bid is at one-third of the share price high around one decade ago. The share price has not been at this level for nearly seven years.

MAIN MARKET

Dukemount Capital (DKE) has secured a joint venture with flexible power company HSKB, which will be renamed DKE Energy. The 50%-owned business will develop two gas peaking facilities which will produce 10MW of power. These will cost £6.25m and the intention is to secure a 15-year, inflation linked contract. Dukemount director Paul Gazzard founded HSKB.

One Heritage Group (OHG) has signed a construction finance facility with Lyell Trading. The facility is for £3.5m and lasts 18 months at a nominal interest rate of 9.6%. The facility will be used to finance Oscar House, a development of 27 apartments in central Manchester. The development should be completed in the first quarter of 2022.

Mast Energy Developments (MAST) says that the Brodesley reserve power project has reached construction ready status.

Lee Marks has been appointed chief executive of NMCN (NMCN) and interim chief executive Robert Moyle is retiring from the board after a transition period.

Kanabo Group (KNB) has signed an agreement with Pure Origin, which will manufacture and package Kanabo’s CBD wellness products from its facility in Wales. There will be a dedicated production line for VapePod products. This deal will lead to a full international product launch.

BATM Advanced Communications (BVC) has started to deliver two Covid-19 diagnostic tests. The saliva-based test will be used by the Italian team at the Olympic Games in Japan.

S&U (SUS) says monthly motor finance collections are above budget and the number of customers on payment holidays has fallen to 1,200. The Aspen bridging loan division is lending more for each deal and profit is reaching record levels.

Andrew Hore

Alan Green discusses MetalNRG #MNRG & Ananda Developments #ANA on his weekly Stockbox Media Research talk

Alan Green discusses MetalNRG #MNRG & Ananda Developments #ANA on his weekly Stockbox Media Research talk

Ananda Developments #ANA – Issue of Equity and Directors’ Interests

As referred to in Ananda’s announcement of 18 May 2021, Charles Morgan (Chairman of the Company) and Melissa Sturgess (Chief Executive Officer of the Company) have each been issued with 100,000,000 ordinary shares of 0.2p each in the Company (“Ordinary Shares”; the “Contingent Consideration Shares”) following the successful grant of a > 0.2% THC Home Office Licence to grow cannabis for research activities.

Application will be made for the Ordinary Shares to be admitted to trading on the Access Segment of the AQSE Growth Market and admission is expected to become effective on 26 May 2021.

Directors’ Interests

Following the issue of the Contingent Consideration Shares, Charles Morgan and Melissa Sturgess are interested in Ordinary Shares as follows:

Current Holding of Ordinary Shares Issue of Contingent Consideration Shares New Holding of Ordinary Shares Percentage interest in Ordinary Shares
Charles Morgan 51,071,781 100,000,000 151,071,781 19.03%
Melissa Sturgess 77,724,170 100,000,000 177,724,170 22.39%

Total Voting Rights

Following this issue, the Company has 793,872,220 Ordinary Shares in issue, each share carrying the right to one vote.

This figure of 793,872,220 Ordinary Shares 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 to their interest in, the share capital of the Company under the FCA’s Disclosure and Transparency Rules.

Concert Party

Following the issue of the Contingent Consideration Shares, the members of the Concert Party will be interested, in aggregate, in 343,657,607 Ordinary Shares, representing 43.29 per cent of the Company’s enlarged issued share capital. The maximum potential interest of the Concert Party in the voting rights of the Company is set out in the table below:

Concert Party Member Current Holding of Ordinary Shares Holding of Warrants Exercise of Options Maximum interest in Ordinary Shares
following exercise of the  Warrants by the Concert Party and the exercise of Options
Maximum %age interest in voting rights
following exercise of the Warrants by the Concert Party and the exercise of Options
Charles Morgan* 151,071,781 5,530,115 156,601,896 19.03%
Melissa Sturgess* 177,724,170 8,070,282 185,794,452 22.57%
Jeremy Sturgess-Smith 1,700,000 10,451,389 12,151,389 1.48%
Peter Redmond 8,686,743 3,686,743 12,373,486 1.50%
Michael Langoulant 4,474,697 1,474,697 5,949,394 0.72%
URA 216 216 432
Total Concert Party Holding 343,657,607 362,419,660 372,871,049 372,871,049 45.30% 
Ordinary Shares in Issue 793,872,220 812,634,293 823,085,682 823,085,682

*In addition to the Ordinary Shares set out above, Charles Morgan and Melissa Sturgess have been granted options over 9,282,778 and 9,282,778 Ordinary Shares respectively, pursuant to the Company’s Incentive Scheme. Charles Morgan and Melissa Sturgess have undertaken not to exercise these options unless such exercise is permitted by the Takeover Code.

Words and expressions defined in the circular to shareholders in the Company dated 24 May 2019, which is available on the Company’s website at www.anandadevelopments.com, have the same meaning in this announcement.

Ananda Developments #ANA – Grant of Home Office Licence

The Directors of Ananda announce the following progress regarding Ananda’s vision to become a significant participant in the emerging medicinal cannabis sector:

HIGHLIGHTS

  • DJT Plants Limited (“DJT Plants”) has been granted a licence to grow >0.2% THC cannabis for research activities by the UK Government Home Office (the “Licence”).
  • The build out of DJT Plants’ research facility to breed and stabilise 65 strains of cannabis will commence immediately, utilising the funds raised by the Company in March 2021.
  • DJT Plants is a wholly owned subsidiary of DJT Group Limited (“DJT Group”), which is owned as to 50% by Ananda’s wholly owned subsidiary, Tiamat Agriculture Limited, and as to 50% by Anglia Salads Limited (“Anglia Salads”).

Background

On 14 October 2019, DJT Plants submitted its application for a licence to grow >0.2% THC cannabis for research purposes pursuant to the Misuse of Drugs Act 1971. Following submission of the application, DJT Plants and its advisers have been in a dialogue with the Home Office, local police and the MHRA, amongst others. The regulations around COVID-19 caused a year’s delay in Home Office representatives being able to visit the proposed site of the research activities. When regulations allowed, representatives of the Home Office made a visit to proposed locations on 17  March 2021. DJT Plants received its Licence on 17 May 2021.

Anglia Salads and DJT Plants both held UK Home Office licences to grow >0.2% THC cannabis between 2014 and 2017. They successfully grew up to five hectares of cannabis for GW Pharmaceuticals, in multi-chappelle structures in natural season without any artificial heat or light.

The October 2019 licence application included DJT Plants’ phased strategy to become a significant participant in the emerging medicinal cannabis sector. Phase One is the research phase for which the Licence has been granted.  Phase Two, which will be subject to further UK Home Office licensing, is to build out commercial growing and extraction facilities, for some 40 hectares, at the same location.

The Licence received on 17 May 2021 is to develop a broad range of cannabis genotypes through a genetic stabilisation and field trials programme, with the goal of growing these genotypes in the UK.

DJT Plants will produce a line of 65 stable genotypes through back crossing six generations from a varied portfolio of 13 seeds that exhibit a range of THC/CBD and other cannabinoid, terpene and flavonoid profiles. Those genotypes with metabolic profiles relevant to various health indications which have shown to be receptive to treatment with medical cannabis and for which NICE (the National Institute for Clinical Excellence) has called for further research, will also be filtered for agronomical traits such as yield and resistance to pathogens, moulds etc. This will give DJT Plants a number of stable genotypes with a range of metabolic profiles, containing high and low levels of THC and CBD, together with a varied range of other cannabinoids, terpenes and flavonoids.

With a focus on neuropathic pain, epilepsy, Parkinson’s Disease and systemic sclerosis and with reference to the scientific literature, DJT Plants will analyse the metabolic profiles of the stable genotypes (including reference to their non-stable origin – via plants grown from first generation hybrid) including analysis of minor cannabinoids, flavonoids and terpenes. This analysis will be carried out in Israel under procedures and techniques developed by Professor Dedi Meiri of the Technion Israel Institute of Technology.  Professor Meiri has established an approach for comprehensive metabolic profiling of phytochemicals in cannabis.

The understanding gained from the analysis and studies as described above, together with insight gained from the scientific literature, will assist in the selection of genotypes that could be grown in Phase 2, subject to further licensing from the Home Office, then manufactured under Good Manufacturing Practice (GMP) with a view to becoming available for prescription by doctors on the General Medical Council list of Specialists.

As part of DJT Plants’ research approach, it will also look to establish extraction, distillation and isolation facilities to manufacture “full spectrum” cannabis products and less than full spectrum products according to the specific combinations of cannabinoids, terpenes and flavonoids identified as being efficacious for particular indications.

Following the research phase, and conditional on UK Home Office licensing, the Directors believe a UK source of high quality consistent medicinal cannabis, such as DJT Plants intends to grow and produce, will be well received, given the growing market for medicinal cannabis and the concerns around consistency and quality expressed by prescribing doctors and patients.

Advantages of growing medicinal cannabis in the UK

Anglia Salads and DJT Plants successfully cultivated medicinal cannabis for GW Pharmaceuticals from 2014 to 2017 in UK natural light and heat conditions. Unlike the high capital and operating cost facilities built in some other jurisdictions, DJT Plants will grow cannabis in multi-chappelle structures with the required light, humidity and heat metrics via 100% natural means. By doing this for GW Pharmaceuticals, DJT Plants achieved one natural growth cycle per annum, with consistent quality and a yield of 700g/m2. DJT Plants’ direct experience growing medical cannabis is that one natural cycle per year achieves better economics and is more environmentally friendly and sustainable than ‘pushing’ the plants to achieve two to three crops per year with the associated high costs.

Build Out of Research Facility

On 15 February 2021, Ananda announced that it had raised £300,000 for the build out of its research facility at the Licence location. As reported to shareholders at the time, these funds were set aside for the build out. DJT Plants will therefore immediately commence the build out and commissioning of the research facility.

Issue of Contingent Consideration Shares

Pursuant to the agreement whereby Ananda acquired Tiamat Agriculture Limited, announced on 24 May 2019 and approved by Ananda’s shareholders on 10 June 2019, Melissa Sturgess and Charles Morgan, Chairman and Chief Executive Officer of the Company, are entitled to be issued 100 million ordinary shares of 0.2p each in Ananda when the Licence is granted. These shares will be issued as soon as practicable, and a further announcement will be made at that time.

Ananda CEO Melissa Sturgess said: “Ananda is extremely excited to achieve this important milestone which allows us to grow and stabilise 65 strains of cannabis and conduct field trials.  We also maintain our focus on the future when we hope to legally produce premium UK grown medicinal cannabis for patients who need it.”

-Ends-

The Directors of the Company accept responsibility for the contents of this announcement.

ANANDA DEVELOPMENTS PLC
Chief Executive Officer
Melissa SturgessInvestor Relations
Jeremy Sturgess-Smith
+44 (0)7463 686 497
ir@anandadevelopments.com
PETERHOUSE CAPITAL LIMITED
Corporate Finance
Mark Anwyl
Allie FeuerleinCorporate Broking
Lucy Williams
Duncan Vasey
+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.

Andrew Hore – Quoted Micro 17 May 2021

AQUIS STOCK EXCHANGE

United Win Asia has invested £3.15m in Samarkand (SMK) at 115p a share, which is the same as the original placing price but well below the market price. United Win Asia is part of a logistics group and this fits well with Samarkand’s ecommerce platform.

Clarify Pharma plans to raise £5m at 3p a share, which would value the life sciences company at £10.5m. The focus is psychedelic-based substances that can be used to treat PTSD, Alzheimer’s and depression. Investments will be identified in the UK and Canada. The board is dominated by the same team, including Michael Edwards, that floated decentralised finance (DeFi) focused investment company Dispersion Holdings (DEFI) and NFT Investments (NFT), which is investing in a portfolio of non-fungible tokens (NFTs).

Michael Edwards is also chairman of Pioneer Media Inc. This is a company that has floated on the Canadian Stock Exchange and plans to gain a quote on Aquis. Pioneer is seeking investments in eSports and mobile gaming. The expected admission date is 25 May.

Pharma C Investments is an early-stage investor in the medical cannabis sector. The focus will be on markets that already have legislation and regulations. The plan is to raise £1m and the expected admission date is 26 May.

Greencare Capital (GRE) has appointed Richard Tonthat as chief executive. The cannabis-focused investment company recently made its first two investments after its original acquisition fell through. Richard Tonthat has worked at Grant Thornton and British American Tobacco, when it made a large cannabis acquisition in Canada.

ASX-listed Pacific Nickel has completed the acquisition of 80% of Kolosori Nickel and Gunsynd (GUN) has received 682,790 Pacific Nickel shares at 8 cents each for its stake. The current Pacific Nickel shareholding is 1.95 million shares. There will be deferred consideration if a mining lease is granted, and the mineral resource is confirmed. Gunsynd could receive a further 1.14 million shares if this is achieved.

Eight Capital Partners (ECP) is acquiring corporate finance adviser Innovative Finance Srl for an initial €2.45m with a further €2.45m payable depending on performance over three years. Eight Capital Partners previously had an option to acquire a 60% stake. Concreta Srl will own 9.9% of Eight Capital Partners and chairman Dominic White will own 29.9% – he is also loaning the company €1.1m.

Cadence Minerals (KDNC) says that a second batch of iron ore has been shipped from stockpiles at the Amapa project in Brazil. The cash will be used to pay creditors, including ex-employees. The remaining creditors need to be paid before Cadence acquires a 20% stake in Amapa. A further investment of $3.5m would take the stake to 27%.

R Oldfield has been buying shares in Shepherd Neame (SHEP). He bought 6,356 shares at 1032p each, a further 2,500 shares at 1038p each and 16,144 shares at 1035p each.

Incanthera (INC) is presenting at the Shares and AJ Bell investor evening webinar on 19 May.

Vulcan Industries (VULC) has raised £70,000 at 1.5p a share. Vulcan subsidiary Orca Doors is gaining orders, which cover six months of capacity. Ananda Investments (ANA) has raised £15,000 from the exercising of warrants at 0.45p a share.

EPE Special Opportunities Ltd (ESO) had a NAV of 495.69p a share at the end of April 2021.

AIM

Motor dealer Vertu Motors (VTU) performed     In the year to February 2021, revenues fell from £3.1bn to £2.5bn, while underlying pre-tax profit improved from £23m to £24.6m. Net cash, excluding leases and vehicle stocking loans, was £1.4m at the end of February 2021. The net tangible asset value is 50.2p a share. At the beginning of May, CIP Merchant Capital (CIP) bought 1.55 million Vertu Motors shares at just over 40.3p each.

Business restructuring company Begbies Traynor (LSE: BEG) has acquired Midlands-based MAF Property, which is a finance broker. The deal could cost up to £11.75m, with £3m in cash and shares upfront and the rest depending on profit growth. The pre-tax profit forecast for the year to April 2022 has been raised from £16.5m to £17m.

Nightcap (NGHT) has raised £10m at 23p a share and strong demand meant that existing shareholders Raymond Blanc and David Moore sold part of their stakes. The original plan was to raise £4m.

e-Therapeutics (ETX) has raised £22.5m, including £920,000 via Primary Bid, at 24p a share. The cash will be used to expand the company’s drug discovery and development operations. There are plans to complete a first in human clinical study for one RNAi asset and advance two or three other RNAi therapeutic programmes through preclinical development.

Great Western Mining (GWMO) has completed an initial six-hole drilling programme at the Trafalgar Hill project in Nevada. All six holes intercepted intercepted the main shallow structure. In the next few weeks there will be further drilling and more analysis and news about these drilling results.

Gaming Realms (GMR) has extended its SLINGO agreement with Scientific Games. The four-year licensing deal includes the opportunity to launch SLINGO digital lottery games.

Trellus Health has the rights to technology that can be used to manage irritable bowel syndrome. It can reduce unplanned hospital visits by 85%. The US-based company expects to join AIM on 28 May.

STM (STM) has sold its Jersey trust and company services business for net cash of at least £1.4m. That reduces the 2021 profit forecast by £100,000 to £2.5m.

Dekel Agri-Vision (DKL) says April crude palm oil production was lower against strong comparatives, but that was offset by higher prices. Arden still expects a move into profit this year – €600,000 is forecast.

MAIN MARKET

Medica Group (MGP) reported a one-fifth reduction in full year revenues to £36.8m. The lack of elective surgery meant that demand for teleradiology services was reduced. However, demand for emergency services slightly increased. There was an initial contribution from the Irish business bought last year. The 2020 underlying pre-tax profit fell from £11m to £4.74m. The US business was acquired this year and an Australian joint venture has been launched.

LED lighting and wiring accessories supplier Luceco (LUCE) expects interim operating profit to double to £18m. Operating margins are being maintained even though costs of some components are increasing. Net debt should remain at around £18.3m.

Haysmacintyre and a partner have been reprimanded and fined for its audit of the Associated British Engineering (ASBE) accounts for 2017-18. This was not undertaken in the appropriate manner.

Cizzle Biotechnology (CIZ) has reversed into standard list shell Bould Opportunities. Cizzle is is developing a test that could make diagnosing lung cancer more accurate by preventing false positives. A placing raised £2.2m at 10p a share. Pro forma cash is £1.89m, which is slightly higher than the NAV. The cash will be used to make progress towards gaining CE marking for the biomarker test.

Andrew Hore

Andrew Hore – Quoted Micro 10 May 2021

AQUIS STOCK EXCHANGE

Virgata has published its offer document for the 50p a share bid for Walls & Futures REIT (WAFR) and the first acceptance date is 27 May. Walls & Future REIT management are still arguing that the bid is too low because it is at less than 50% of NAV. Virgata points out that shareholders would not be able to sell their shares in the market for anywhere near NAV and that costs, including director pay, exceed income. Liquidity is certainly and that means that it has been difficult to raise cash to scale up the business.

Samarkand (SMK) is making its first acquisition following its admission to the Aquis Apex segment. The cross-border trading group is paying £2.41m in cash and shares (at 139.67p each) for Zita West Products and 51% of Babawest, where a further £400,000 will be loaned. Zita West Products supplies nutritional supplements for fertility and pregnancy, and it has worked with Samarkand for more than three years. Babawest supplies nutritional products for mothers and babies. In the year to September 2020, Zita West Products made an adjusted pre-tax profit of £241,000 on revenues of £854,000. Interim revenues were 60% ahead at £636,000. Samarkand can use its ecommerce technology and contacts in China to grow sales.

Third quarter revenues dipped at National Milk Records (NMRP), but like-for-like revenues were 1% greater at £5.42m. That excludes the former heat detection operations. The growth has come from newer areas, such as Johne’s and surveillance testing. There was a small decline in milk recording revenues, but they are recovering and the next quarter comparisons will not be as strong.

British Virgin Islands-based technology-focused shell Boanerges Ltd plans to float on 17 May. It appears that the share issue will be relatively small because Richard Griffiths will have his stake diluted from 75% to 71.7%. Internet of Things, big data and telematics are some of the areas where the directors are seeking acquisitions.

Rutherford Health (RUTH) is drawing down £15m from its infrastructure investment facility, which means that all £40m will have been drawn down. This will be invested in the company’s cancer treatment facilities.

Sativa Wellness (SWEL) increased 2020 revenues by 38% to £1.99m. Transaction costs increased the loss from £3.8m to £4.8m. There are 30 wellness clinics in operation, and they are adding to the range of tests on top of the Covid-19 tests. The benefits of CBD products launched last year should show through in 2021.

URA Holdings has distributed its shares in Ananda Developments (ANA) to its own shareholders. This has increased the stakes of directors Charles Morgan (to 8.65%), Melissa Sturgess (to 13.2%) and Peter Redmond (to 1.47%).

Western Selection (WESP) has increased its stake in electrical and gas services provider Bilby (BILB) from 11.93% to 12.18%. This was before the trading statement that revealed that Bilby generated 2020-21 revenues of £60m and EBITDA of £3m. Net debt was £2.7m at the end of March 2021, prior to commencing paying £1m of VAT liabilities. The full yar results will be published in early July.

Christopher Potts has taken a 5.94% stake in DiscovOre (ORE).

Newbury Racecourse (NYR) non-executive director Bryan Burrough has acquired 8,600 shares at 737.5p each.

S-Ventures (SVEN) has raised £3m at 15p a share and every two shares will be issued a warrant exercisable at 25p. Chief executive Scott Livingston invested £500,000 in the placing and his stake is 49.1%. Vulcan Industries (VULC) has raised nearly £75,000 at 3.2p a share.

AIM

Virgin Wines (VINO) says that sales and profit are ahead of expectations in the year to June 2021. Liberum had forecast revenues of £70.3m, up from £56.5m last year, and the outcome is expected to be at least £73m. The easing of lockdowns could hamper growth, but the expanded customer base will help Virgin to continue to grow.

Bars operator Nightcap (NGHT) is making its first acquisition since joining AIM. Nightcap is paying £2.5m for Adventure Bars Group with £1m in shares being paid initially and up to £1.5m (at the same share price) dependent on performance in the two years from 1 July 2021. The cost is much higher than that because the acquisition comes with around £4.3m of borrowings, of which between £1.28m and £1.78m will be repaid and a £110,000 convertible (at 21p a share) issued to the lender. Nightcap is trying to raise a further £4m.

IPTV technology developer Mirada (MIRA) says trading was in line with expectations in the year to March 2020. That means that revenues were around £12m and the loss was around £3m. Trading improved during the second half and revenues were higher than in the first half. New opportunities mean that Mirada should improve its performance this year. Demand is building up in Asia.

A positive trading statement by concrete levelling equipment supplier Somero Enterprises (SOM) has led to a 15% upgrade in forecasts earnings to 39.9 cents a share. That has led to an increase in the expected dividend to 27.9 cents a share. Trading has been strong in the US, while Europe and Australia are recovering.

Coral Products (CRU) is paying an interim dividend 0.5p a share and the ex-dividend date is 13 May. Coral is selling the Haydock facility for £3.5m, but has to spend £650,000 on the roof before the sale is completed. Book value is £2.5m. Coral will lose the £300,000 a year of rental income.

Appreciate Group (APP) says 2020-21 figures are in line with expectations. Even so, the underlying pre-tax profit of the financial services and savings business has been slightly upgraded by Edison. The pre-tax profit is still likely to slump from £11.4m to £4.5m, before recovering to £7.2m in 2021-22. Digital sales are becoming increasingly important.

Trinity Exploration and Production (TRIN) has acquired a 100% interest in the PS-4 lease block, onshore Trinidad, for $3.5m. Average daily production was 83 barrels during 2020.

Software company WANdisco (WAND) increased its loss in 2020-21, but it is expected to fall sharply this year. That is because revenues are forecast to jump from $10.5m to $37m. WANdisco could even move into profit next year. The LIVEdata software is thought to be the only credible petabyte data analysis product capable of migrating data to the cloud on the market.

One Media IP Group (OMIP) has acquired the writer’s share of producer royalties, which covers more than 250 tracks by Kid Creole and the Coconuts. This deal has been done through Harmony IP, which gives artists the chance to access future income by selling a portion of their rights. This high profile deal could attract other artists to the Harmony IP proposition.

Initial drilling results from the Hamersley iron project owned by Alien Metals (UFO) shows new iron ore zone targets in the Hancock area of the project. The interpretation work outlines much larger target areas. Results from 36 more drill holes are due later this month.

Bacanora Lithium (BCN) says that there has been a 67.5p a share cash bid approach from Ganfeng International Trading. The bid is near to the share price high at the beginning of the year, which was the highest it has been for nearly three years. Ganfeng owns 50% of the Sonora lithium project and already holds 28.9% of Bacanora.

Anglo African Oil & Gas (AAOG) has lost its AIM quotation because it has failed to acquire a new business. It has entered into an option to acquire a 25% interest in the Saltfleetby gas field in east Lincolnshire for £8m in shares. The deal is dependent on at least £1m being raised and the shares becoming quoted on a recognised market.

Nu-Oil and Gas (NUOG) has left AIM, but it continues to make progress with the acquisition of Guardian Maritime. The cash generative business sells a retro-fitted system for ships that stops pirates boarding vessels. This deal should enable the shares to be admitted to the standard list by the end of June.

MAIN MARKET

Standard list shell East Star Resources (EST) commenced trading on 4 May, and it is seeking resources opportunities. The shell raised £1.73m net of expenses at 5p a share. The existing shares were previously issued at 1p each. The share price ended the week at 6.25p.

Tirupati Graphite (TGR) has developed a graphene-aluminium composite. This has conductivity properties comparable to copper. Tirupati is talking with potential customers who would want to replace copper because of the composite’s lower weight. Power and propulsion systems are one area where there is interest.

Cardiff Property (CDFF) has increased the interim dividend from 4.8p a share to 5p a share. There was a dip in pre-tax profit from £387.000 to £365,000, but there was a lower tax charge. The Thames Valley property markets has shown signs of slowing down and rental income will be lower this year. The current share price is 1850p, compared with a NAV of 2445p a share – although there is a potential tax liability on any disposal of the investment in Campmoss of 265p a share.

MGC Pharmaceuticals (MXC) says pre-clinical and clinical results for ArtemiC Rescue, which targets viral infections with inflammatory complications, has demonstrated an ability to decrease the markers of inflammation. Phase II clinical trials showed that the treatment could hasten recovery in Covid-19 patients with mild to moderate illness, which should offset the problem of long Covid.

CBD products supplier Zoetic International (ZOE) is raising £6m at 60p each and this will be used to terminate the financing agreement with LDA Capital. That will cost £1.2m and the rest will go on the US rollout of Chill products and launching new products.

Andrew Hore

Alan Green talks Echo Energy #ECHO, Emmerson #EML & Ananda Developments #ANA on the Vox Markets podcast

Alan Green discusses Echo Energy #ECHO, Emmerson #EML & Ananda Developments #ANA with Justin Waite on the Vox Markets podcast. Interview is 9 minutes in.

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