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Sativa Investments buys UK medicinal cannabis lab for £435K

“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," said Sativa executive director Mark Blower

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Sativa says the purchase price was below the market value of assets and equipment

Sativa Investments PLC (NEX:SATI) has agreed to buy PhytoVista Laboratories, a UK-based lab that tests cannabis oils and hemp products, for £435,000.

The British medicinal cannabis investment vehicle will pay £235,000 in cash and £200,000 worth of shares at 0.04p per share to buy PhytoVista from Carbon Managers Limited.

READ: Sativa Investments positions itself for 'huge opportunity' in medicinal cannabis

Carbon is wholly owned by Sativa’s chief executive Geremy Thomas but he was not involved in the decision-making for the deal.

Sativa independent directors Noel Lyons and Mark Blower assessed the deal and consulted Dr. Stuart Ungar, who is a member of the company's medicinal cannabis advisory board.

Sativa said the purchase price was well below the market value of the assets and equipment acquired. If purchased new, the equipment laboratory would cost more than £580,000, the company 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,” Blower said.

“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 has preferred partner status to the UK's Cannabis Trades Association for batch testing of medicinal cannabis products.

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