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Sativa in talks to be acquired by CSE and OTC listed CBD manufacturer

Published: 08:10 22 Apr 2020 BST

Sativa Group PLC -

Sativa Group PLC (AQSE:SATI) revealed it has signed a letter of intent that could lead to the CBD wellness and medicinal cannabis specialist being acquired by OTC, CSE and Frankfurt-quoted StillCanna Inc.

Sativa said the would-be buyer is a leader in cannabinoid extraction and agriculture, focusing on the large-scale manufacturing of CBD in Europe.

It has built two high volume extraction facilities and is Europe’s largest producer of CBD distillate and isolate. StillCanna has also developed a unique closed-loop ethanol extraction system that allows the non-psychoactive elements of cannabis to be extracted at a lower cost than traditional methods.

In a statement, Sativa’s chief executive, Henry Lees-Buckley said of the potential transaction: "We believe this is a truly unique opportunity to create a leading European CBD seed to consumer company."

“This combination brings together the Sativa Group, the UK's leading quoted CBD wellness and medicinal cannabis group with StillCanna Inc. focused on the cultivation and extraction of hemp biomass into concentrated CBD extracts. Rarely do you find two companies whose industry strengths complement each other resulting in such a synergistic entity," he added.

The all-paper deal, if it is formalised, would see Sativa investors receive 0.33651 StillCanna shares for every share they currently own.

All Sativa options and warrants will be exchanged for StillCana warrants. Sativa will receive a £1mln break fee if the deal does not complete.

Sativa investors would hold 65% of the enlarged business if the transaction closes.

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