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Sativa raises £1.38mln to fund next stage of development

The proceeds will be invested in the company's operations as it aims to ramp up production and gain market share in 2020

Sativa Group PLC - Sativa raises £1.38mln to fund next stage of development

Sativa Group PLC (LON:SATI) has raised £1.38mln to fund the next stage of its development as it aims to ramp up sales in 2020.

The medicinal cannabis raised the funds through the placing of 7.75mln and subscription of 26.75mln new shares to employees as well as new and existing investors at a price of 4p each, a 21% discount to its last close price of 5.05p.

READ: Sativa Group appoints new member to medical advisory board

Sativa said the net proceeds, expected to be around £1.35mln, will be invested into its operations and provide working capital to help it “move to the expected next stage of its development”.

The firm also issued a brief outlook statement saying its Goodbody Botanicals brand has been “well received with the high street grocers and pharmacies” and that is was confident that its product offer and timing was right to ramp up production and gain market share in 2020.

Sativa added that its Tesselate Collective direct selling model had seen “solid growth” ahead of a brand launch in January, while its PhytoVista hemp testing laboratory business was also expanding.

“We are pleased with the progress we have made this year. Traditionally in retail the Christmas season is one of the busiest trading periods but our focus is also on the many opportunities we see in our growing marketplace and we look forward to the future with confidence”, the company said.

Sativa’s shares were trading at around 5.1p on the NEX exchange on Thursday lunchtime.

Quick facts: Sativa Group PLC

Price: 2.63 GBX

NEX:SATI
Market: NEX
Market Cap: -
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