TIDMANA
RNS Number : 1056V
Ananda Developments PLC
29 November 2023
29 November 2023
ANANDA DEVELOPMENTS PLC
("Ananda" or the "Company")
Management accounts for the quarters ended 31 July 2023 and 31
October 2023
Ananda Developments Plc (AQUIS: ANA), the company whose ambition
is to be a leading provider of cannabinoid-based medicines for the
treatment of chronic, complex inflammatory pain conditions,
announces its unaudited management statements for the quarters
ended 31 July 2023 and 31 October 2023.
This announcement contains inside information for the purposes
of the UK Market Abuse Regulation and the Directors of the Company
are responsible for the release of this announcement.
For further information, please contact:
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
Corporate Finance
Richard Morrison
Harry Davies-Ball
Corporate Broking
Abigail Wayne
Rob Rees +44 (0)20 3470 0470
Directors Statement
Introduction
Ananda Developments Plc ("the Company" or "Ananda") is a company
quoted on the Aquis Stock Exchange ("AQSE") Growth Market. The
Company was incorporated on 19 January 2018 and its shares were
admitted to trading on 4 July 2019.
Below is a summary of activities during the periods in question
and certain post-period events.
Activities during the periods
Ananda Corporate
Ananda announced on 6 September 2023 that it had issued 600,000
of GBP1 each denomination unsecured, interest-bearing convertible
loan notes (the "CLNs"). The issue consists of a total cash
investment of GBP300,000 raised from two existing shareholders in
the Company and debt capitalisation of GBP300,000 owed to Charles
Morgan, Chairman of Ananda, pursuant to existing loan agreements
(the "Loan Agreements"). Following the debt capitalisation, the
outstanding unsecured debt owed by Ananda pursuit to the Loan
Agreements was GBP709,000. Charles Morgan agreed not to call the
loans until after 31 January 2025. The funding was earmarked for
general working capital purposes and to pursue further clinical
trials into inflammatory pain conditions. The key terms of the CLNs
are:
-- Interest rate of 15 per cent. per annum, which will accrue for the term of the CLNs
-- The conversion price is the lower of a 20% discount to the
price at which shares are issued in the next capital raising of
GBP1,000,0000 or more or 0.4 pence, with a minimum conversion price
of 0.2 pence
-- Conversion of all CLNs will occur automatically upon the
earlier of 30 November 2025, the listing of the Company on a
different exchange or change of control
The Company appointed SP Angel Corporate Finance LLP as its
Aquis Corporate Adviser and Broker in May 2023.
MRX Medical
As at the end of the periods in question, MRX Medical had
developed a proprietary method to formulate cannabis medicines and
three proprietary cannabidiol (CBD) based formulations. MRX1, MRX
Medical's first product, is being used in two Phase II Randomised
Controlled Trials (RCTs) to investigate the effectiveness of CBD in
chemotherapy induced peripheral neuropathy (CIPN) and in patients
with endometriosis. On 15 August 2023, the Company announced that
the endometriosis trial is to be funded by the Chief Scientist
Office of NHS Scotland via a GBP300,000 non-dilutive grant. The
CIPN trial has also received combined commitments of GBP1.25
million in external grant funding and both trials are to be carried
out by leading investigators at the University of Edinburgh.
MRX1 and MRX2, MRX's second formulation, were launched as
unlicensed CBPMs (Cannabis Based Products for Medicinal use in
humans) on 27 July 2023.
The MRX website was launched in June 2023. The website provides
potential prescribing clinicians with a contact point with MRX via
which they can obtain technical data about the medicines, including
ingredients, formulation details, ingredient quality information
and dosage guidelines. In May 2023, the Company also announced that
MRX had filed patents over three cannabinoid formulations: MRX1,
MRX2 and its most recently developed formulation MRX3. These
formulations have been 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 a proprietary method for formulating these
products. This was followed up in November 2023 with a fifth
application covering a new cannabinoid formulation called MRX2T.
This formulation is based on MRX's patent pending MRX2 cannabidiol
formulation, with the addition of tetrahydrocannabinol (THC), it
has been developed for use in Randomised Controlled Trials
(RCTs).
Also following the end of the periods, on 14 November 2023, the
Company announced that MRX Medical Limited ("MRX") signed a Drug
Supply Agreement ("DSA") with the University of Edinburgh ("UofE")
and the Lothian Health Board ("LHB"). This agreement provides the
legal framework for the provision of MRX1 to UofE for the CIPN
trial and confirms the IP ownership and licencing for MRX.
DJT
During the periods, work continued as DJT refined and progressed
its genetic stabilisation programme through to its third
generation, collecting 29,000 seeds across 45 genetic lines. DJT
now believes it has developed a set of protocols to successfully
self-pollinate cannabis and produce enough viable seeds to grow the
next generation of plants, each generation of which will be more
genetically homogenous than the previous one. This is a significant
achievement for DJT and one that the Directors believe will enable
DJT to claim IP (Intellectual Property) protections over the unique
strains it is breeding.
The genetic stabilisation programme has undergone several
refinements and alterations to the methodology. These
methodological improvements have now been implemented across the
programme and have led to a 50 per cent reduction in the time taken
to move from one generation to the next. The improvements have also
increased the number of seeds collected per plant by 100 per cent
and have also improved the quality of seeds.
From May - July 2023, DJT performed a second year of cannabis
cultivation trials in its low cost, low carbon cultivation
environment in Lincolnshire. Three strains with promising
cannabinoid and terpene profiles were selected for growing trials.
The strains were selected based on both the performance of the
first-generation plants during the 2022 cultivation trials and the
results of the detailed testing performed on the strains. The
results of this testing were received in early 2023 and discussed
in a Corporate Update released via RNS on 6 February 2023. The
results confirmed that DJT had successfully grown high THC,
balanced THC/CBD, and high CBD cultivars.
On 10 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. DJT passed the
compliance visit successfully. 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 were reduced whilst the
Company continues to plan for commercial cultivation.
Ananda announced on 31 August 2023 that it paused operations at
the DJT cultivation facility to reduce monthly cash burn. DJT
announced it was exploring opportunities to partner with a
university to attract third party grant funding to complete the
genetic stabilisation work and explore ways to scale up commercial
cannabis cultivation rapidly, once the UK market has grown to a
point where investing the capital to construct the cannabis flower
processing and manufacturing facility is possible and makes
financial sense for shareholders.
Subsequent to the end of the periods, on 1 November 2023, the
Company announced that Ananda and DJT signed a Memorandum of
Understanding ("MOU") with Nottingham Trent University ("NTU") to
pursue third-party grant funding to progress DJT's medical cannabis
breeding programme and its low carbon medical cannabis cultivation
and manufacturing. The shared vision, beyond the MOU, is to create
a formal Strategic Partnership and the establishment of a
Cannabinoid Centre of Excellence at NTU.
Melissa Sturgess
Chief Executive Officer
Unaudited Statement of Comprehensive Income for the quarters
ended 31 July 2023 and 31 October 2023
31 October 31 July
2023 2023
Note GBP GBP
Administrative expenses (194,000) (66,198)
Interest payable (29,553) (44,412)
Loss from operations (223,553) (110,610)
Taxation - -
Total loss for the period (223,553) (110,610)
=========== ==========
Earnings per share
Basic and diluted earnings
per share (pence) 2 (0.008p) (0.004p)
There was no other comprehensive income in the period.
The notes which follow form part of these management
accounts.
Statement of Financial Position As at quarters ended 31 July
2023 and 31 October 2023
31 October 31 July
2023 2023
Note GBP GBP
Non-Current assets
Investments in subsidiaries 9,728,569 9,470,421
------------ ------------
9,728,569 9,470,421
Current assets
Trade and other receivables 61,083 130,909
------------ ------------
61,083 130,909
Current liabilities
Trade and other payables 1,791,685 1,893,372
1,791,685 1,893,372
Non-Current liabilities
Convertible loan notes 613,562 -
Total assets less liabilities 7,384,405 7,707,958
============ ============
Capital and reserves
Share capital 5,756,056 5,756,056
Share premium 5,328,996 5,328,996
Equity to be issued - 100,000
Share option reserve 51,357 51,357
Retained earnings (3,752,004) (3,528,451)
Total equity and liabilities 7,384,405 7,707,958
============ ============
The management accounts were approved and authorised for issue
by the Board and were signed on its behalf by:
Melissa Sturgess
Chief Executive Officer
The notes which follow form part of these management
accounts.
Statement of Changes in Equity for the quarters ended 31 July
2023 and 31 October 2023
Share
Share Share Option Retained
Capital Premium Reserve Earnings Total
GBP GBP GBP GBP GBP
As at 1 May 2023 5,468,251 5,027,990 35,929 (3,417,841) 7,114,329
Loss for quarter ended
31 July 2023 - - - (110,610) (110,610)
--------------------------- ---------- ---------- --------- ------------ ----------
Proceeds from share issue 287,805 301,006 - - 588,811
Issue of share options - - 15,428 - 15,428
Equity to be issued - - 100,000 - 100,000
Balance at 31 July 2023 5,756,056 5,328,996 151,357 (3,528,451) 7,707,958
========== ========== ========= ============ ==========
Share
Share Share Option Retained Tot
Capital Premium Reserve Earnings al
GBP GBP GBP GBP GBP
As at 1 August 2023 5,756,056 5,328,996 151,357 (3,528,451) 7,707,958
Loss for quarter ended
31 October 2023 - - - (223,553) (223,553)
------------------------ ---------- ---------- ---------- ------------ ----------
Equity to be issued - - (100,000) - (100,000)
Balance at 31 October
2023 5,756,056 5,328,996 51,357 (3,752,004) 7,384,405
========== ========== ========== ============ ==========
The following describes the nature and purpose of each reserve
within owners' equity:
Reserve Description and purpose
Share capital This represents the nominal value of shares
issued.
Share premium Amount subscribed for share capital in excess
of nominal value.
Retained earnings Cumulative net gains and losses recognised
in the statement of comprehensive income.
The notes which follow form part of these management
accounts.
Notes to the financial statements
General information
Ananda Developments Plc is a public limited company limited by
shares and was incorporated on 19 January 2018 with company number
13440398. Its registered office is at 60 Gracechurch Street,
London, EC3V 0HR.
The Company's shares are traded on the Aquis Stock Exchange
Growth Market under symbol ANA and ISIN number GB00BDQPXQ60.
The information for periods ended 31 October 2023 and 31 July
2023 are unaudited.
Basis of preparation
These quarterly management accounts of Ananda have been prepared
in compliance with United Kingdom Accounting Standards, including
Financial Reporting Standard 102, "The Financial Reporting Standard
applicable in the United Kingdom and the Republic of Ireland" ("FRS
102") and the Companies Act 2006.
These management accounts are prepared on a going concern basis,
under the historical cost convention, as modified by the
recognition of listed invests at fair value.
The management accounts are presented in Pounds Sterling, which
is the Company's presentation and functional currency.
The preparation of the management accounts requires the use of
certain critical accounting estimates. It also requires management
to exercise its judgment in the process of applying the Company's
accounting policies. The areas involving a higher degree of
judgment and complexity, or areas where assumptions and estimates
are significant to the management accounts are disclosed below.
Going Concern
The Company does not have a bank account. Ananda's cash is held
by its subsidiary companies DJT Plants Ltd and MRX Global Limited.
As at 31 October 2023, the subsidiaries jointly held cash of
GBP56,527.87.
For this reason, it continues to adopt the going concern basis
in preparing the management accounts.
Earnings per share
The calculation of earnings per share is based on the loss
attributable to ordinary shareholders divided by the average number
of shares in issue during the period.
31 October 31 July
2023 2023
Earnings GBP GBP
Loss for the quarters ended (223,553) (110,610)
Number of shares
Weighted number of shares
for the purpose of basic
and diluted earnings per
share 2,878,027,906 2,834,988,755
Earnings per share (pence) (0.008) (0.004)
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END
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(END) Dow Jones Newswires
November 29, 2023 09:39 ET (14:39 GMT)
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