Sativa Wellness Group Inc (AQSE:SWEL, CSE:SWEL, OTC:SCNNF, FRA:484) has announced a new business strategy following what it said was a “strong start” to its current year.
In an announcement after Friday’s close, the company said it will align the legal entities within the group with its existing divisions of cannabidiol (CBD) products, Cannabinoid testing and Clinic Testing Services in order to achieve “clearer reporting” in 2022.
READ: Sativa Wellness to open fortieth clinic
In its Goodbody brand of CBD products, Sativa said it will aim to secure sales through well-known online platforms as well as build a membership model for predictable revenues, extend its product range to include drinks and vape, secure distribution agreements with partners throughout Europe, progress M&A to increase the product range and revenue and expand the production of an increased range in Poland.
Meanwhile, the company’s cannabinoid testing division will look to expand the scope of its ISO17025 accreditation as well as work with its Polish laboratory team to expand cannabinoid testing in Europe and position the business to partner with institutions as a key supplier.
The firm is also aiming, through its clinic services arm, to significantly increase the footprint of clinics across the UK, expand COVID-19 testing and introduce a range of wellness testing through the clinic network as well as corporate testing and solutions for faster testing.
In terms of its first-half performance, Sativa reported that its first quarter had seen its “best quarterly turnover to date” at £1.37mln, adding that its second quarter had produced even strong results.
The company also said its business is operating on a positive cash flow and that its Goodbody Botanicals trading company has generated profits in the year-to-date in 2021.
"It has been six months since I felt compelled to take back leadership of Sativa and I am pleased to say the changes made have produced strong results both financially and operationally. The next phase will be exciting for us all", Sativa’s executive chairman Geremy Thomas said in a statement.
"I am delighted to join such an exciting company and evolve the roadmap to ensure a successful group, where the share value truly reflects the sum of the parts: an international, accredited laboratory testing facility in Phytovista, a European CBD (gold-standard) manufacturing and retail division with a broad product range combined with digital marketing expertise, and a Covid / Wellness division increasing its footprint and testing facilities delivering our mission - Wellness as a lifestyle choice. We plan to hold our AGM in September where I look forward to updating our loyal investors with progress. In the meantime, thank you for your patience", added chief executive Marc Howells.