Tag: SATI

Sativa Group Plc (NEX:SATI) subsidiary, Goodbody Botanicals, has secured a CBD product listing agreement with WH Smith Travel Ltd which operates more than 550 UK convenience retail outlets with a concentration on travel hubs including airports, train stations, service stations and hospitals. WHS Travel will stock Goodbody Botanical’s products in circa 100 of their highest footfall UK stores.

The WHS Travel product listing has resulted through Goodbody Botanicals’ brand partnership agreement with SHS Sales & Marketing (GB) Limited, through which it is targeting key high-street retailers, grocers, and pharmacies. This product listing is the first completed agreement of numerous other potential national product listing arrangements currently in discussion via SHS.

Sativa Group Chief Executive Henry Lees-Buckley said: “Our new product listing with WHS Travel is a significant accomplishment for our Goodbody Botanicals brand, putting it in front a large number of consumers looking for a high-quality CBD brand they can trust.”

Sativa Group PLC (NEX:SATI) today noted the recent announcement by the Food Standards Agency (“FSA”) concerning the safe use of CBD products and the timetable for Novel Food authorisation.  It welcomes the clarity of a regulatory framework as an important step leading to the development of a safe and legal market in the UK for CBD. 

Sativa’s products, sold under the Goodbody Botanicals, Goodbody Wellness, Tessellate and GB brands, are THC free and are rigorously tested before despatch to ensure that they are free of solvents and other contaminants.  Product labelling and packaging clearly explains the recommended daily intake, which is in-line with FSA guidelines.  The QR code on each label links to the website giving the Certificate of Analysis of each specific batch. 

Sativa, as a founding member of the Association for the Cannabinoid Industry, is at the vanguard of setting industry standards and engaging with regulators, and is fully committed to the process of obtaining Novel Food regulatory approval for its products. 

Henry Lees-Buckley, Chief Executive Office of Sativa Group, said: “This guidance from the FSA will reassure our customers and distribution partners that Sativa is at the forefront of building a sustainable CBD wellness industry.  Sativa, incorporating its Phytovista Laboratory, Home Office licences for research with King’s College London, and Scientific Advisory Board, continues to invest in the infrastructure to ensure we are fully compliant with industry regulation.” 

Sativa Group (NEX:SATI) has today provided a trading update for the year ended 31 December 2019, along with a general business update. 

2019 was a year of significant progress for the Group.  The strategic focus and reorganisation that has taken place since the arrival of Henry Buckley has enabled progress to be made across all aspects of the Group.  In 2019, the focus was to build a solid platform for growth and allocate resources to the best opportunities.

Goodbody Botanicals

The Company’s flagship brand, Goodbody Botanicals, was created and launched in the second half as a result of the experience from the George Botanicals brand and customer focus group input.  The resounding message from these focus groups was that consumers are seeking a brand in which they can trust, and the Goodbody Botanicals brand was created to deliver that.  Our products are tested to be THC free and come with QR codes linking the products to laboratory tests.  The packaging was developed to provide consumers with all of the important information needed. 

The goal of Goodbody Botanicals is to be the leading CBD brand for the major UK high street pharmacies and grocers, as well as thousands of independent UK pharmacies countrywide.  An optimal go-to-market strategy was developed to deliver products effectively to retailers, and we have since partnered with the top distribution firms in the UK- SHS Distribution, a leader in distribution to high street grocers and pharmacies, and Alliance Healthcare, the leader in distribution to independent pharmacies across the UK.  The strategy launched in the second half of 2019 is already bearing fruit, with new business being won including numerous independent UK pharmacies.  We continue to see very strong interest from the high street retailers and our team expects to win new customers. 

Goodbody Wellness

Our Goodbody Wellness brand piloted three retail stores in 2019, as a basis to test the model to enable franchising.  The retail stores have to date not delivered to our expectations but we have learned a significant amount from the pilot program and now plan on modifying the model to introduce smaller and lower cost concession locations, while expanding our product range.  

Additionally, we are now launching the Goodbody Wellness brand to the health and beauty segment.  We believe that this premium range will fit ideally into customers such as high-end retail, spas, health and wellness centres.  We are expanding this product offering, with this range to be sold through our sales team and online. 

Tessellate

At Tessellate Collective, our direct selling platform, we have seen solid growth in 2019.  We have now built a new scalable back-end support system to enable significant growth in 2020 and beyond.  The beginning of 2020 has already seen a significant increase in the product range, strong sales and the addition of new sales advocates. 

Supply Chain

In the area of supply chain, we continue to expand our product range, formalise processes and deliver on our quality commitment.  Although compliance is not an exciting term, it is at the heart of our supply chain, as we are committed to delivering high quality products each and every time.  We batch test both our own and externally sourced products within the Group’s PhytoVista Laboratories and then regularly externally test for verification and calibration purposes.  We believe our commitment to quality is a core success factor for our business and is consistent with our desire to build brands in this sector that will be trusted. 

Product line expansion continues with numerous products, including a new sports range nearing completion.

PhytoVista Laboratories

PhytoVista Laboratories has enjoyed a very strong year with sales in line with management’s expectations.  The laboratory has now performed over 3,000 tests on cannabis-based products.  On the technical side, we are in the final stages of achieving ISO accreditation and the outlook continues to be bright, with 2020 off to a good start. 

Research

In 2019 we entered into a research partnership agreement with King’s College London and received a Home Office Licence to cultivate cannabis for research. Under the partnership agreement, Sativa provides Kings’ College with the cannabis product it need.  We are pleased to announce that we successfully completed our first cannabis harvest this month and look forward to continuing to fulfil Kings College’s research needs. 

Veterinary and Human

We are making good progress on the medicinal front, with our efforts currently focused on the veterinary space.  Our Scientific Advisory Board is adding significant value as we develop the needed medicines in the space.  As always, we strictly adhere to all the regulatory requirements on development.

Group

As an early mover in the industry, we continue to be nimble and to take advantage of areas that are delivering results and, equally, can pivot when things are not.  2019 was a year when the platform for growth was established and, as we look to the rest of 2020 and beyond, our focus is on continuing to build on our solid sales efforts to date.  Management continually monitors the Group’s cost base and is ready to recognise as and when business elements require alteration.  As a result of this approach, when the Group reports its final results for the year to 31 December 2019 in April 2020, the Group expects to show gross profit and EBITDA slightly ahead of expectations on marginally lower revenue than forecast, which increased by greater than five-fold on the revenue reported in the prior-year.  

Henry Lees-Buckley, Chief Executive Office of Sativa Group, said:  “2019 was a year of progress for Sativa, with the focus being on building a strong foundation for growth.  The strategy is in place and the team is focused on execution.  As always, we are taking the high road in ensuring that we not only deliver high quality compliant products but also deliver best in class customer service.  I am confident 2020 will be a breakout year and will solidify our position as a leading UK CBD wellness and medicinal cannabis company”.

Sativa Group Plc (NEX:SATI) subsidiary Goodbody Botanicals has secured a product listing agreement with Alliance Healthcare, one of the leading distributors and wholesalers of pharmaceutical, medical and healthcare products in the UK and Europe.  This gives Alliance’s 10,000+ high street retailer customers access to the Goodbody Botanicals range of market-leading CBD products.  Alliance Healthcare services independent pharmacies, national accounts, and superstores. 

In addition, Alliance’s syndicated pharmacy salesforce, Skills in Healthcare, has been contracted to promote and sell the Goodbody Botanicals range to the 1,500 top performing independent pharmacy customers.  

Sativa Group Chief Executive Henry Lees-Buckley said: “The Alliance distribution agreement is a significant step in Sativa’s Goodbody Botanicals CBD Wellness brand’s objective to grow market share with high street pharmacies, grocers, and superstores.” 

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.”

Sativa Group Plc [NEX: SATI], the UK’s leading quoted CBD wellness and medicinal cannabis Group, has provided the following Company update.

Business streams

Following the appointment of Henry Lees-Buckley as Chief Executive Officer in August 2019, the Group has developed to become a UK-centric, cohesive and complementary group of five operating subsidiaries.

Goodbody Botanicals provides CBD products online and to retail markets including pharmacies, wellness stores and grocers. Goodbody Wellness is a high-street retail brand with dedicated CBD wellness stores providing a premium shopping experience to consumers. Tessellate Collective is a direct-selling platform servicing consumers at home. Phytovista Laboratories provides independent testing of CBD products to both external customers and fellow Group businesses. Sativa Cultivation and Extraction holds a Controlled Drug licence and cultivates cannabis plants to fulfil its partnership agreement with King’s College London to enable research into the impact of cannabinoids on inflammation and respiratory conditions.

Senior appointments

In line with the progress that the Company has made, it has secured senior appointments to reflect the demand for its consumer products.

Richard Bunce has been appointed Product and Procurement Manager for the Sativa Group. He has over 30 years’ experience in product development, roll-out and procurement with companies including Wolseley Group Plc, Pets at Home, and Homebase. Richard will oversee the Group’s entire range of products in terms of quality, compliance, category management, packaging and product line expansion.

Alan Horton has been recruited as Director of Retail Sales for Goodbody Botanicals. Alan has extensive sales management experience selling to the major UK high street grocery and pharmacy retailing customers. Additionally, he has significant CBD industry experience. Alan will work closely with our distribution partner SHS Distribution to coordinate our sales efforts with major retailers.

Quoted market update

As the Company continues to mature and expand, the Board has considered the most appropriate market on which its shares should trade. The Company confirms that it has appointed Cenkos Securities to explore the Admission of the Company’s shares to trading on the London Stock Exchange’s Alternative Investment Market (“AIM”). Whilst there can be no guarantee that this will be achieved, the Company is keen to pursue an Admission to AIM as soon as practicable in the New Year.

Cannabis Cultivation

Five weeks after the Home Office granted Sativa a Controlled Drug licence for the cultivation of cannabis plants with THC content of greater than 0.2%, along with its production, possession and supply, the first batch of seedlings are thriving. The seedlings are being prepared to be moved to the cultivation room. The total growing cycle is 12 weeks, allowing for four crops per year.

The first extract of medicinal cannabis oil will be delivered to Kings’ College London in December.

Henry Lees-Buckley, Chief Executive Officer of Sativa Group, said:

“We consider the Sativa Group to be at the forefront of the UK CBD and medicinal cannabis sector and we intend to maintain that position by keeping to the regulatory and compliance high-road.”

Just five weeks after the Home Office granted Sativa Group Plc a Controlled Drug licence for the cultivation of cannabis plants with THC content of greater than 0.2%, along with its production, possession and supply, the first batch of seedlings are thriving.  BBC TV News was given exclusive access to the high-security growing facility where the seedings are being prepared to be moved to the cultivation room.  The total growing cycle is 12 weeks, allowing for four crops per year. 

Sativa Group Plc is the UK’s leading quoted CBD Wellness and medicinal cannabis group with five operating subsidiaries.  Goodbody Botanicals provides CBD products online and to retail markets including pharmacies, wellness stores and grocers.  Goodbody Wellness is a high-street retail brand with dedicated CBD Wellness stores providing a premium shopping experience to consumers.  Tessellate Collective is a direct-selling network marketing platform servicing consumers at home.  Phytovista laboratories provides independent testing of CBD products to both external customers and fellow Group businesses.  Sativa Grow holds a Controlled Drug licence and cultivates cannabis plants to fulfil its partnership agreement with King’s College London to research the impact of cannabinoids on inflammation and respiratory conditions. 

Last week, two cannabis-based treatments for epilepsy and multiple sclerosis were approved by the NHS.  As part of a wider focus on cannabis-based products, the BBC interviewed Dr Tom Freeman, lead director of the Addiction and Mental Health Group at the University of Bath.  Sativa’s Director of Regulatory Affairs, Dr Nick Horniman, is interviewed in the Group’s Phytovista laboratory.     

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Sativa Group Plc is the UK’s leading quoted CBD Wellness and medicinal cannabis group with five operating subsidiaries. Goodbody Botanicals provides CBD products online and to retail markets including pharmacies, wellness stores and grocers. Goodbody Wellness is a high-street retail brand with dedicated CBD Wellness stores providing a premium shopping experience to consumers. Tessellate Collective is a direct-selling network marketing platform servicing consumers at home. Phytovista laboratories provides independent testing of CBD products to both external customers and fellow Group businesses. Sativa Grow holds a Controlled Drug licence and cultivates cannabis plants to fulfil its partnership agreement with King’s College London to research the impact of cannabinoids on inflammation and respiratory conditions. 

Sativa Group (NEX:SATI), the UK’s leading quoted CBD wellness and medicinal cannabis Group, has appointed Clive Page, Professor of Pharmacology at King’s College London, to its Medical Advisory Board.  Professor Page’s main research interests are in the pharmacology of inflammation and respiratory disease, and he has published over 300 scientific papers and book chapters.  

He was awarded the Sandoz Prize from the British Pharmacological Society in 1988, The Tanabe Young Investigators Prize from the American College of Clinical Pharmacology in 1996 and the Society of Biology President’s Medal in 2012 for “Outstanding Contributions to the Life Sciences”.  He is a Fellow of the Royal Society of Biology and an Honorary Fellow of the British Pharmacological Society.  Professor Page was awarded an OBE for “Services to Pharmacology” in 2017.

Dr Nick Horniman, Director of Regulatory Affairs at Sativa, said:  “Professor Page is an eminent research scientist and will add to Sativa’s experience, interest and understanding in cannabis based medical products.” 

Sativa Group (NEX:SATI), the UK’s leading quoted CBD wellness and medicinal cannabis Group, has announced that its wholly owned subsidiary, George Botanicals, has entered into a brand partnership agreement with SHS Sales & Marketing (GB) Limited.  SHS will distribute a range of “Goodbody Botanical” branded products to UK high street grocery, pharmacy and specialist customers retailers.  

Henry Lees-Buckley, Chief Executive of Sativa, said: “We are thrilled to be partnering with the highly regarded and successful team at SHS.  The combination of their sales, marketing and logistics support, coupled with our high quality Goodbody products, make a compelling value proposition for major high street retailers”.

SHS Sales & Marketing distributes over 100 blue chip Fast-Moving Consumer Good brands in the UK and Republic of Ireland including Mars, Colgate, Lemsip and Nurofen.  SHS Sales & Marketing enjoys a market penetration to over 90% of UK households by distributing high quality products to the major high street retailers and leading convenience chains such as Sainsbury’s, ASDA, Tesco, and Waitrose, as well as to pharmacies and health and wellness stores such as Holland & Barrett. 

As part of the distribution agreement, SHS Sales & Marketing will market the Goodbody Botanicals range on an exclusive basis to its customer base, advising on product mix along with providing promotional and communications support.  Logistics and invoicing are also included within the contract. 

In tandem with this significant brand partnering agreement, George Botanicals is re-branding its highly successful George Botanicals product range to “Goodbody Botanicals”.  In this process the Goodbody Botanicals branding and packaging has been significantly upgraded, providing additional product information for customers.  All products are tested and certified by Phytovista laboratories and are THC free.  

John Heynen, Managing Director of SHS Sales & Marketing GB said: ” The growing demand for CBD wellness products in the UK provides us with an opportunity to further extend our offer to our customers and shoppers, and it is critical we work with the best partner to realise this.  All Goodbody Botanical products are rigorously tested to ensure that they bring high quality items to the marketplace. This attention to product development, quality and testing will provide our customers the sales opportunity and security they need”.

Sativa Group Plc (NEX: SATI), the UK’s leading quoted CBD wellness and medicinal cannabis Group, has announced that its wholly owned subsidiary, Sativa Cultivation and Extraction Ltd, has been awarded a Controlled Drug licence for cannabis (with THC content of greater than 0.2%) cultivation, production, possession and supply, at its Somerset headquarters, by the UK Home Office. The Group is therefore able to commence immediately the fulfilment of its research partnership agreement with King’s College London to research the impact of cannabinoids on inflammation and respiratory conditions.

The cannabis plants will be grown from seeds sourced from an EU approved supplier and are estimated to have a growing cycle of 12 weeks, allowing for multiple crops per year. The Group already has a purpose-built secure growing facility that has been inspected by the Home Office as part of the application process. Once they have reached maturity, the plants will be dried, and the cannabinoids then extracted as a liquid using pressure and heat.

The process is strictly controlled to standard operating procedures approved by the UK Home Office, including all handling, transportation to the College, and the disposal of residual waste and by-products.

Dr Nick Horniman, Sativa Group Director of Regulatory Affairs, said:

“This high-THC cultivation license complements our low-THC Industrial Hemp licence, held in the name of Geremy Thomas, Founder and Deputy Chairman of Sativa, that was granted in April 2018, and we continue to work with the regulators to broaden the suite of licences as the Group expands its operations.”

Henry Lees-Buckley, Chief Executive Officer of Sativa, said:

“We are delighted to receive this licence, responding to calls from regulators, government and healthcare providers for further research and development into the efficacy of medicinal cannabis. We are committed to operating at these high standards and to partner with Kings College London, to help establish a clinical pathway for patients to access medicinal cannabis.”

Sativa Group (LON:SATI) has today announced its interim results to 30^th June 2019.

Henry Lees-Buckley, who was appointed CEO in August 2019, said: “Sativa Group made substantial progress during the first half of the year with revenue and gross profits growing strongly. 

“The Goodbody CBD Wellness business completed its three-store pilot phase and is poised to roll-out its franchise model.  With the George Botanicals brand and PhytoVista laboratories also performing well, prospects look good.” 

Key points:

•           Revenue increased by 133% on H2 2018 to £588,000 (2018: H1: £8,000, H2: £252,000)¹.

•           5% increase in gross margin on H2 2018 to 46% (2018 H1: 87%, H2: 41%)¹.

•           Gross profit of £273,000, a 164% increase on H2 2018 (2018: H1: £7,000, H2: £103,000)¹.   

•           Cash at bank and cash equivalents of £2.23 million (31 December 2018: £3.74 million).

•           Two offtake agreements were signed with suppliers for CBD oil in Portugal and also Switzerland.

•           The Company’s direct selling platform was launched in May 2019, with 430 sales advocates recruited by the period-end, generating strong revenue growth.

•           The first Goodbody Wellness centre was opened in Bath at the end of June, alongside a training centre for customer facing staff at the Company’s HQ. Post period-end, further stores opened in Cirencester and Clifton, Bristol, completing the planned three-store pilot phase. 

¹ P&L variance comparison to H2 2018, as the results to June 2018 represent 9 days of trading performance from George Botanicals, post-acquisition on 22 June 2018.

Sativa Group Plc [NEX: SATI], the UK’s leading quoted CBD Wellness and medicinal cannabis Group, recently completed the initial phase of its Goodbody CBD Wellness store chain, choosing Clifton, Bristol as the third and final location for proof-of-concept, alongside Bath and Cirencester. The Group is now actively seeking franchisees to participate in its comprehensive, full-support national franchise plan.

The 500 sq ft (45.5 sq. m.) Queens Road store joins Space NK, Waitrose, The White Stuff, Café Nero, Vodafone and Wagamama in the Clifton Triangle, a thriving and vibrant primary retail destination. The store stocks a range of more than 50 CBD products and each store has a tasting bar for customers to sample CBD products and enjoy a cup of high quality CBD infused coffee.

The consumer experience consists of focused knowledge and support from highly trained staff who are able to advise customers on the range of CBD products available and the best way to use and apply those products. CBD is believed to boost the body’s endo-cannabinoid system which works to restore homeostasis and balance. CBD enriched products available include skincare, tinctures, balms, bath bombs, vape oils, body oils and capsules.

Chris Jones, Managing Director of Goodbody Wellness, said:

“It was a great launch weekend with customer feedback echoing the sentiments given about the first two stores. The customers really appreciate a prestige high-street brand which they can trust. It’s all about traceability, product testing, and balance.

“A welcome surprise was that the store opened for business a day early. We hadn’t even switched on the digital display boards and customers were knocking on the door. That gave the team an early chance to put their extensive training in to practice. Our fellow traders in the Clifton Triangle have been highly complimentary about our store design and quality of product and Goodbody is already viewed as a further boost to local high-street retail.”

Recently-appointed Sativa Group CEO Henry Lees-Buckley said:

“Goodbody has achieved this significant milestone in just eight months. It’s an important third CBD trading business to the Group alongside George Botanicals and our direct CBD marketing channel, and a fellow Group subsidiary to PhytoVista Laboratories.

“We expect to soon add the licenced growing of medicinal cannabis, once necessary approvals are in place, for research and development purposes through our collaboration agreement with Kings College London, which is looking at the potential benefits that medicinal cannabis might have on respiratory diseases.”

The Company has a full-scale replica Goodbody store at its Somerset headquarters alongside its bespoke training facility. All three trading stores are within an hour’s drive, allowing potential franchisees to absorb the concept and then witness it trading first-hand.

Goodbody Managing Director Chris Jones is a highly experienced international retail expert, as detailed in his appointment release of 15th January 2019.