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Medicinal cannabis investor Sativa Investments reports 'significant progress' post IPO

Sativa Investments expects to benefit from being the UK’s first medicinal cannabis investment vehicle as the market develops
cannabis
The group ended the first half with total consolidated assets of £2.08mln

Sativa Investments PLC (NEX:SATI), the UK’s first medicinal cannabis investment vehicle, said it has “progressed significantly” since it began trading on the NEX Exchange earlier this year.

The firm raised £1.1mln net of expenses in its initial public offering on March 29 and secured a further £500,000 in June from the LF Miton UK Smaller Companies Fund, its first major institutional investor. Founder and chief executive, Geremy Thomas, and his family invested £560,000 in the company in January. 

In the six months ended June 30, the group has invested £656,000 into Veritas Pharma Inc, Rapid Dose Therapeutics Inc and George Botanicals Ltd.

READ: Sativa Investment moves into Germany, one of Europe’s largest medical cannabis markets

As a newly established investment vehicle, Sativa generated consolidated revenues of £7,700 for the period, reflecting six days of sales by George Botanicals from its acquisition on June 22. Since the period end to August 31, George Botanicals' revenues stood at £68,200.

The group ended the first half with total consolidated assets of £2.08mln and cash at bank and cash equivalents of £1.42mln. Gross profit came to £6,700. 

In July, the company bought UK testing laboratory, PhytoVista Laboratories Ltd, for £460,000. Sativa said the acquisition will allow it meet the need for regulatory and batch testing of cannabidiol (CBD) products and, once approved by the UK Home Office, medicinal cannabis treatments including tetrahydrocannabinol (THC).

Last week Sativa said it had entered into a joint venture with German-based Lexamed GmbH ("Lexamed"), forming a new German medicinal cannabis company named Sativa Germany GmbH ("Sativa Germany"), which will secure German wholesale, import and export licences for the distribution of medicinal cannabis products.

"Sativa has progressed significantly since listing, along with the industry itself, witnessing a sea-change in attitude from the medical profession and also the government in relation to unmet patient needs and widespread realisation that the UK is falling behind in terms of accepting the benefits of medicinal cannabis,” said Thomas.

"The company continues to build a solid foundation for the end-to-end supply of medical cannabis and CBD products to fulfil its seed to consumer strategy." 

Looking ahead, Sativa expects to benefit from being the UK’s first medicinal cannabis investment vehicle as the market develops.

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