Ananda Developments Plc Shareholder Update and Issue of Equity
April 13 2023 - 1:01AM
UK Regulatory
TIDMANA
13 April 2023
ANANDA DEVELOPMENTS PLC
("Ananda" or the "Company")
Shareholder Update, Issue of Equity and Grant of Options
Ananda's ambition is to be a leading provider of high-quality medical cannabis
for the treatment of complex, chronic inflammatory pain conditions.
Highlights
. Preparation is well underway at DJT Plants Limited ("DJT") for
the construction of a medical cannabis flower processing facility (GMP1)
. MRX1, the first cannabidiol medical cannabis oil from MRX
Medical Limited ("MRX"), will be launched commercially in June 2023, with two
medical cannabis clinics agreeing in principle to prescribe it
. Genetic stabilisation has successfully completed its first
generation and the process is expected to speed up significantly across the
following generations
. MRX1 cannabidiol medical cannabis oil has been put on stability
trials ahead of being used in two Randomised Controlled Trials (RCTs)
Ananda's CEO, Melissa Sturgess, commented: "We have always maintained that
building our business carefully will reap dividends. It is no coincidence that
we are now in a position to launch medical cannabis oils and getting close to
constructing our medical cannabis flower processing facility, at the same time
as Prohibition Partners, one of the leading industry commentators, predicts
that the UK will become the second largest medical cannabis market in Europe
this year."
Commercial
DJT medical cannabis flower, cultivation, and processing
During the next six-months, DJT's commercial objectives are to put out to
tender the construction of GMP1 and engage with the chosen pharmaceutical
construction company, finalise the capital costs for this work, and write the
standard operating procedures for commercial cultivation.
Whilst it is not yet possible to predict the exact timing for DJT to achieve
the requisite commercial cultivation and manufacturing approvals, the following
stages were identified by the MHRA (Medicines and Healthcare products
Regulatory Agency) in late 2022:
1. Applying to the MHRA for the appropriate licence(s): for DJT this requires
completion of construction of the processing facility as above.
2. MHRA carries out a remote desktop inspection.
3. Applying to the Home Office for relevant licence(s): for DJT this will mean
applying for its current licence to be expanded to permit commercial
activities.
4. The completion of relevant outstanding validation activities: DJT expects
this step to be expedited as it has had the benefit of a full season of
cultivation and harvesting trials, as well as the benefit of testing and
validation work.
To progress through the above stages, DJT will grow three cultivars in 2023 in
its polytunnels. These cultivars have been chosen from the 2022 trial cultivars
for their robust growth characteristics, healthy flowering and preferred
cannabinoid and terpene profiles. The first clones have been taken from the
mother plants of the chosen cultivars and they will be planted into the tunnels
shortly. DJT will grow from clones for the 2023 season and will move to
seed-based production at the conclusion of the genetic stabilisation programme.
The cultivars will be grown and harvested according to Good Agricultural
Collection Practice (GACP). This is a necessary step for MHRA approval as
outlined above. For security and intellectual property protection reasons, it
is not possible to release further details of the cultivars.
During the winter, the team used DJT's indoor lab space to work on a range of
additional plant manipulation strategies designed to increase yield. They also
worked on detailed irrigation practices to promote cannabinoid content
production in the weeks leading up to harvest. This involves varying the amount
of water given to the plant to stress the plant in a predictable manner.
Appropriate plant stress, timed precisely in the period before harvesting, can
increase cannabinoid production. The captured data will be used to optimise
cultivation protocols.
MRX medical cannabis oils
Ananda's recently acquired wholly owned subsidiary, MRX, has two medical
cannabis oil formulations ready for launch. MRX1 and MRX2 are proprietary
cannabidiol based broad spectrum formulations which will be prescribed as
unlicenced CBPM's (Cannabis Based Products for Medicinal use in humans).
MRX has reached agreement in principle with two UK based medical cannabis
clinics to add MRX1 to their formularies to enable them to commence
prescribing. Commercial launch of MRX1 is therefore expected in June 2023. The
MRX website will be launched before this date.
Research
MRX1 Clinical Trials
MRX1 is being used in two placebo-controlled Phase II RCT's. These are being
conducted by clinician researchers at the University of Edinburgh and have
received combined commitments of £1.55m of non-dilutive funding. Currently, the
MRX1 formulation is being prepared for stability trials required under the MHRA
investigative medicine guidelines, ahead of final documents being signed and
trial recruitment commencing.
NICE (National Institute for Health and Care Excellence) has specifically
called for research into the effectiveness of cannabidiol with no or trace
tetrahydrocannabinol (THC). Ananda is actively pursuing further clinical trial
opportunities for MRX1 as the Directors believe that positive clinical trial
evidence could allow MRX1 to be prescribed on the NHS.
DJT Genetic Stabilisation
Several new cannabis genetics have been added to the genetic stabilisation
programme. They include cultivars which have been specifically chosen to
increase the genetic diversity of the programme and, via the analysis of global
cannabis cultivar sales data, to increase the desirability of the resultant DJT
owned genetic seed lines. The new strains have replaced a few of the poorer
performing cultivars.
On site last week, there was successful germination of the in-house developed
second-generation (S2) seeds. This is a breakthrough for the DJT genetic
stabilisation programme and is believed to be the first time that a 'selfed'
(when the plant breeds with itself) cannabis seed has been successfully
germinated and represents a significant step towards the Company's goal of
generating a grown-from-seed, >98% genetically identical cannabis crop at
scale. The learnings gained during this process will significantly accelerate
progress to the sixth generation seeds. The originally proposed growing
protocols have been adapted and refined to achieve male anthers (pollen
producing part of the flower) in larger number and more rapidly, therefore
allowing for a faster progression from generation to generation.
A video showing the first shoots from the S2 seeds will be uploaded to the
Company's social media accounts following release of this announcement. These
accounts are:
. Instagram: https://instagram.com/anandadevelopments?igshid=
YmMyMTA2M2Y=
. LinkedIn: https://www.linkedin.com/company/anadevelopments/
. Twitter: https://twitter.com/anandaplc?s=21&t=
9yeIC_xYCfzgDn7j26sfuA
Issue of Shares
In lieu of a one-off consulting fee, Victor Booty is being allotted 2,222,222
ordinary shares of 0.2p each in the Company ("Ordinary Shares"; Fee Shares") at
a deemed price of 0.9p per share. Mr. Booty originally introduced Ananda to the
medical cannabis cultivation opportunity and initiated the negotiations which
resulted in Ananda acquiring DJT.
Grant of Options
Further to shareholder approval of the Enterprise Management Incentive (EMI)
Share Option Plan (the "EMI Plan") at the Company's AGM on 17 August 2022, the
Company has granted options over 60,000,000 Ordinary Shares pursuant to the EMI
Plan: 30,000,000 to Linda Sweetlove, Head of Quality at DJT, and 30,000,000 to
Jack Morgan, Head of Group Communications and GMP1. These options will vest in
3 equal tranches on the first, second and third anniversaries of their grant,
with exercise prices of 0.5p, 0.605p and 0.66p per share, respectively. The
Company has also issued options over 10,000,000 Ordinary Shares to Frances
Crewdson, a consultant, which will vest in two equal tranches on the first and
second anniversary of their grant, with exercise prices of 0.5p and 0.605p per
share, respectively.
Application for Admission
Application will be made for the Fee Shares to be admitted to trading on the
AQSE Growth Market and admission is expected to become effective on 19 April
2023.
The Fee Shares will, on admission, rank pari passu in all respects with the
Ordinary Shares in issue and will rank in full for all dividends and other
distributions hereafter declared, paid, or made on the ordinary share capital
of the Company.
Total Voting Rights
Following the issue of the Fee Shares, Ananda has 2,736,347,451 Ordinary Shares
in issue, each share carrying the right to one vote.
This figure of 2,736,347,451 Ordinary Shares may be used by shareholders in the
Company as the denominator for the calculations by which they will determine if
they are required to notify their interest in, or a change to their interest
in, the share capital of the Company under the FCA's Disclosure and
Transparency Rules.
-Ends-
The Directors of the Company accept responsibility for the contents of this
announcement.
ANANDA DEVELOPMENTS PLC +44 (0)7463 686 497
ir@anandadevelopments.com
Chief Executive Officer
Melissa Sturgess
Chief Operating Officer
Jeremy Sturgess-Smith
PETERHOUSE CAPITAL LIMTED +44 (0)20 7469 0930
Corporate Finance
Mark Anwyl
Corporate Broking
Lucy Williams
Duncan Vasey
About Ananda Developments
Ananda is an AQSE-listed medical cannabis company whose ambition is to be a
leading provider of high-quality medical cannabis for the treatment of complex,
chronic inflammatory pain conditions for the UK and international markets.
For more information, please visit: https://anandadevelopments.com
Market Abuse Regulation (MAR) Disclosure
The information contained within this announcement is deemed by the Company to
constitute inside information. Upon the publication of this announcement via a
Regulatory Information Service, this inside information is now considered to be
in the public domain.
END
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