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Sativa Group plc

Sativa Group Placing and subscription to raise approximately £1.38 million

Sativa Group (NEX: SATI), the UK’s leading quoted CBD wellness and medicinal cannabis group, has today announced that it has raised approximately £1.38 million (before expenses) by way of a placing and subscription of 34,500,000 new ordinary shares of 0.25 pence each at a price of 4 pence per New Ordinary Share. The Fundraising comprises a placing of 7,750,000 New Ordinary Shares and a subscription of 26,750,000 New Ordinary Shares. Application has been made for admission of the New Ordinary Shares, with trading on the NEX Exchange Growth Market expected to commence on 23 December 2019. Investors have also been offered the opportunity to be issued with warrants. Pursuant to the offer, a total of 31,075,000 unlisted and non-transferable warrants in the Group, exercisable at 4.75 pence may be issued to investors. Allenby Capital Limited acted as sole broker on the Fundraising.

Transaction Highlights

·    The New Ordinary Shares have been placed with employees, existing and new investors.

·    The Placing and Subscription shares will represent approximately 6.06 per cent. of the total issued share capital of the Company, post Admission.

·    The net proceeds of the Fundraising, which will be approximately £1.35 million, will be used by the Company to invest in the Group’s operations and provide working capital to enable the Company to move to the expected next stage of its development. 

Outlook

We continue to work hard executing our strategy as we close 2019. Our new Goodbody Botanicals brand has been very well received with the high street grocers and pharmacies. We believe that our solution ideally fits the needs of consumers and retailers as this new category continues to expand. The foundation is set with our sales team and SHS Distribution (our distribution provider) meeting with key customers and planning for the coming year. We are confident that our product offer and our timing is right as we continue to ramp up sales and market share in 2020. The three location Goodbody Wellness store pilot is progressing. We continue to educate consumers on CBD, expand the product range, and optimize the marketing mix prior to executing a franchise rollout.

Our Tesselate Collective direct selling model has seen solid growth as we close the year and prepare for an exciting brand launch in January. Our PhytoVista laboratory business continues to deliver strong growth as the UK CBD industry expands.

Taken together, 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. 

Henry Lees-Buckley, Chief Executive Officer of Sativa Group, said: “I would like to welcome our new investors and also thank our existing shareholders for their continued support. As a great example, existing shareholder Ken Lawrence has strongly supported this fundraising with a large contribution to the overall placing.”

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