Sativa Investments PLC (NEX: SATI) has moved to improve liquidity in its NEX-listed stock by agreeing to a refinement of the Orderly Market Agreements entered into at the time of its float at the end of March.
The group, the UK's first medicinal cannabis investment vehicle, said it has made the move because it is “aware of the exceptional and growing demand amongst investors to own shares in the Company.”
All investors who subscribed for Sativa’s ordinary shares in the company at admission entered into an Orderly Market Agreement and the group’s directors of Sativa agreed, should demand arise, to exercise their allocated options and sell the resulting ordinary shares through its corporate adviser and broker, Peterhouse Capital Limited.
However, given the unprecedented demand in the market for its shares, and the desire of Sativa’s directors not to have to be the sole suppliers of stock at levels which its board believes do not reflect the long-term value of the company, it has agreed that all shareholders who are subject to the current Orderly Market Agreements will be permitted to trade in the stock.
The firm added that such trading on the NEX Exchange Growth Market will require the consent of Peterhouse, although it added such consent should not “be unreasonably withheld”.
Sativa said its directors remain subject to the Lock-In Agreements entered into on admission, but they will no longer be required to make further shares available through the exercise of their options.