TIDMANA
RNS Number : 9344F
Ananda Developments PLC
13 July 2023
13 July 2023
ANANDA DEVELOPMENTS PLC
AQSE: ANA
("Ananda" or the "Company" or the "Group")
UNAUDITED PRELIMINARY RESULTS FOR THE YEARED 31(st) JANUARY
2023
Ananda's ambition is to be a leading provider of high-quality
cannabinoid-based medicines for the treatment of complex, chronic
inflammatory pain conditions.
The information set out below has been extracted from the
Group's draft report and consolidated accounts for the year ended
31(st) January 2023 and has not been audited. A further
announcement will be released by the Company on completion of the
audit, which is expected shortly, and any material changes between
the financial information set out below and the audited financial
information will be disclosed in that announcement.
Chairman's Statement
I am pleased to announce the Company's and the Group's results
for the financial year ended 31(st) January 2023. During the period
Ananda completed the acquisition of the 50 per cent of DJT Group
Limited ('DJT Group') which was not already owned, commenced and
progressed the genetic stabilisation programme being carried out by
DJT Group's 100% owned subsidiary DJT Plants Limited ('DJT
Plants'), successfully cultivated a trial medical cannabis crop in
DJT Plants' unique, carbon efficient & low-cost growing
environment and renewed DJT Plants' Home Office >0.2% THC
cannabis research cultivation licence.
The most significant corporate event during the year was the
completion of the acquisition of DJT Group and restructuring of
certain Director loans to allow the Company access to more
traditional financing methods going forward. The acquisition and
restructuring were completed on 19(th) December 2022, with the
Company paying GBP3.2 million for the remaining 50% of DJT Group,
with consideration being settled via the issue of 350,000,000
ordinary shares of the Company (these shares are in escrow until 19
December 2025).
Subsequent to the year end, the Company announced and has
completed the acquisition of MRX Global Limited and its wholly
owned subsidiary MRX Medical Limited ('MRX').
MRX has invented a proprietary method to formulate cannabis
medicines, the first of which, MRX1, is to be used in two Phase II
Randomised Controlled Trials (RCTs) to investigate the
effectiveness of cannabidiol (CBD) in chemotherapy induced
peripheral neuropathy (CIPN) and in patients with endometriosis.
MRX's cannabidiol formulations meet the requirements set out by the
National Institute for Health and Care Excellence (NICE) for
research into the effectiveness of CBD with no or trace
tetrahydrocannabinol (THC). MRX1 and MRX2, MRX's second
formulation, will also be launched as unlicensed CBPM's (Cannabis
Based Products for Medicinal use in humans) in the coming
months.
The clinical trials have received combined commitments of
GBP1.55 million in external grant funding and will be carried out
by leading investigators at the University of Edinburgh.
In March 2023, the Company also raised a total of GBP427,400 via
the issue of 142,466,667 ordinary shares of 0.2p each in the
Company at a price of 0.3p per share. This, together with the
conversion of the Loan notes cleaned up the balance sheet of the
Company. The Company maintains an unsecured loan facility from me
which it can draw down on, if required and with the agreement of
both parties.
On 27(th) March 2023, the Company held a General Meeting at
which the MRX acquisition was approved by shareholders. As the
acquisition of MRX and MRX Global Limited was not completed until
after the end of the period ended 31(st) March 2023, its accounts
are not consolidated into the financial reports. They will, of
course, be included in the future results and accounts of the
Company.
Since the close of the MRX acquisition General Meeting, the MRX
team has progressed the business significantly. This includes
agreeing to list the MRX unlicenced oils on three separate
specialist clinic formularies and the launch of the MRX website in
June 2023. The website provides an online point of contact for
specialists interested in prescribing MRX cannabinoid based oils.
In May 2023, the Company also announced that MRX had filed patents
over three cannabinoid formulations: MRX1, MRX2 and its most
recently invented formulation MRX3. These formulations are being
developed as cannabidiol-based medicines for the treatment of a
number of complex inflammatory indications which are unmet by
existing treatments. A fourth application was also filed which
covers the proprietary method for formulating these products.
On 10(th) July 2023, Home Office representatives visited DJT
Plants' facility. This visit was a compliance visit as per the
terms of the DJT licence and standard Home Office practice. Two
seasons of cultivation trials have now been undertaken and the
genetic stabilisation programme is at the third generation of
seeds. As a result, this phase of research is now complete and
DJT's costs will reduce whilst the Company continues to plan for
commercial cultivation and manufacturing.
In the period in question, the Group incurred a loss of
GBP1,127,606 (2021: GBP970,343) before tax, of which approximately
GBP862,778 represents operational costs. Net assets of the Group at
the period end were GBP632,734 (2021: GBP288,016) which does not
include the assets of MRX Global Limited and MRX Medical
Limited.
Charles Morgan
Chairman
ENQUIRIES :
ANANDA DEVELOPMENTS PLC +44 (0)7463 686 497
ir@anandadevelopments.com
Chief Executive Officer
Melissa Sturgess
Finance Director
Jeremy Sturgess-Smith
SP ANGEL CORPORATE FINANCE
LLP +44 (0)20 3470 0470
Corporate Finance
Richard Morrison
Harry Davies-Ball
Corporate Broking
Abigail Wayne
Rob Rees
Statement of Comprehensive Income
Group
31 Jan 31 Jan
2023 2022
GBP GBP
Administrative expenses (862,778) (970,038)
Depreciation (178,230) -
Interest payable (247,983) -
Loss from operations (1,288,991) (970,038)
Loss before taxation (1,288,991) (970,038)
Other Comprehensive Income
R&D repayment 161,385 -
Foreign Exchange Translation
Gain/(Loss) - (305)
Total comprehensive loss
for the year (1,127,606) (970,343)
============ ==========
Statement of Financial Position
Group
31 Jan 31 Jan
2023 2022
GBP GBP
Non-Current assets
Tangible Assets 1,756,522 -
Intangible Assets 3,095,751 -
Investments in subsidiaries - 2,252,192
------------ ------------
Total non-current assets 4,852,273 2,252,192
Current assets
Cash and cash equivalents 18,837 -
Assets under construction 47,080 -
Trade and other receivables 203,776 110,938
Total current assets 269,693 110,938
------------ ------------
Current liabilities
Trade and other payables 1,564,420 1,487,254
Convertible loan notes 2,924,812 587,860
Total current liabilities 4,489,232 2,075,114
------------ ------------
Total assets less current
liabilities 632,734 288,016
============ ============
Capital and reserves
Share capital 2,341,110 1,597,031
Share premium 1,806,544 876,347
Share options reserve 30,216 18,788
Retained earnings (3,545,136) (2,204,150)
Total equity and liabilities 632,734 288,016
============ ============
Statement of Changes in Equity
GROUP Share Share Share Retained Total
Capital Premium Options Earnings
Reserve
GBP GBP GBP GBP
As at 1 February 2022 1,597,031 876,347 18,788 (2,204,150) 288,016
Total comprehensive
loss for the year - - - (1,127,606) (1,127,606)
------------------------ ---------- ---------- --------- ------------ ------------
Restated prior year
retained earnings (213,380) (213,380)
Proceeds from share
issue 744,079 930,197 - - 1,674,276
Issue of share options - - 11,428 - 11,428
Balance at 31 January
2023 2,341,110 1,806,544 30,216 (3,545,136) 632,734
========== ========== ========= ============ ============
Statement of Cash Flows
Group
31 Jan 31 Jan
2023 2022
GBP GBP
Cash flows from operating
activities
Loss for the year (1,127,606) -
Adjustments for:
Depreciation 178,230 -
Share based payment expense 11,427 -
Net finance expense 247,983 -
(Increase) / Decrease in (139,918) -
trade and other receivables
Increase / (Decrease) in 295,262 -
trade and other payables
Net cash outflow from operating ( 534,622 -
activities )
------------ ---------
Investing activities
Investment in DJT - -
Amounts owed by subsidiary - -
Intangible assets (1,213,140) -
Purchase of property, plant (1,756,522) -
and equipment
Net cash (outflow) / inflow/ (2,969,662 -
from investing activities )
------------ ---------
Financing activities
Proceeds from issue of convertible 2,336,952 -
loans
Proceeds from issue of ordinary 1,674,276 -
shares
Proceeds from loans and borrowings (240,124) -
Interest paid (247,983) -
-
------------ ---------
Net cash inflow from financing 3,523,121 -
activities
------------ ---------
Net (Decrease) / Increase 18,837 -
in cash and cash equivalents
Cash and cash equivalents - -
at beginning of year
Cash and cash equivalents 18,837 -
at end of year
============ =========
Going Concern
For the year ended 31 January 2023, the Group recorded a loss of
GBP 1,127,606 and had net cash outflows from operating activities
of GBP534,622. An operating loss is expected in the year subsequent
to the date of these accounts. The ability of the entity to
continue as a going concern is dependent on the Group generating
positive operating cash flows and/or securing additional funding
through the raising of debt or equity to fund its projects.
These conditions indicate a material uncertainty that may cast a
significant doubt about the entity's ability to continue as a going
concern and, therefore, that it may be unable to realise its assets
and discharge its liabilities in the normal course of business.
The financial statements have been prepared on the basis that
the entity is a going concern, which contemplates the continuity of
normal business activity, realisation of assets and settlement of
liabilities in the normal course of business for the following
reasons:
-- The Company secured additional funding by way of a GBP427,200
subscription for ordinary shares in March 2023;
-- The Directors are confident that they will be able to raise
additional funds to satisfy its immediate cash requirements;
and
-- The Directors have the ability to reduce expenditure in order to preserve cash if required.
Should the entity not be able to continue as a going concern, it
may be required to realise its assets and discharge its liabilities
other than in the ordinary course of business, and at amounts that
differ from those stated in the financial statements. In the
unlikely event that the Company will not be able to raise the
required funds for the foreseeable future, the Directors will
institute a programme of cuts to directors' and consultant's
remuneration along with other non-fixed and operational costs. The
financial report does not include any adjustments relating to the
recoverability and classification of recorded asset amounts or
liabilities that might be necessary should the entity not continue
as a going concern.
The Directors of the Company accept responsibility for the
contents of this announcement.
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.
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END
NEXGPUBGMUPWUBW
(END) Dow Jones Newswires
July 13, 2023 05:22 ET (09:22 GMT)
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