Unaudited Results for the six months to 30 June 2020 PR Newswire

For immediate release 21 July 2020



AfriAg Global PLC

(“AfriAg Global”, or the “Company”)

Unaudited Interim Results for the six months to 30 June 2020

AfriAg Global PLC (AQSE: AFRI), today announces its interim results for the 6-month period ended 30 June 2020.

Like many public companies around the world, the COVID-19 pandemic has unfortunately slowed down the Company’s efforts with respect to completing the Apollon UK transaction (see below), however we are totally focused on working through the delays and proceeding with this very exciting transaction. We are working diligently with our advisers and regulators towards putting this deal to shareholders for their careful consideration and approval.

Medical Cannabis Investments:

The Company currently owns 4.64 million shares (representing 2.68%) of the share capital of Apollon Formularies Ltd (“Apollon UK”).

The Company is currently working with Apollon UK to satisfy all regulatory requirements for the proposed acquisition of the entire issued share capital of Apollon UK (the “Acquisition”) as previously announced. In due course, subject to making an offer to the shareholders of Apollon UK and obtaining the necessary approvals, the Company intends to send an explanatory circular and notice of general meeting to its shareholders seeking approval of the Acquisition. It is intended that the Company will acquire all the issued and outstanding shares from the shareholders of Apollon UK pursuant to a right of first refusal in consideration for the issue and allotment to those shareholders of new ordinary shares in the capital of the Company at a price of 10 pence per new ordinary share.

Apollon UK is entitled to 95% of the net profit of Apollon Formularies Jamaica, Limited (“Apollon Jamaica”). Subject to approval from the Cannabis Licensing Authority in Jamaica, Apollon UK has the right to acquire a 49% interest in the issued share capital of Apollon Jamaica.

Apollon Jamaica holds the following licenses: 

  1. Licence to cultivate cannabis for the sole purposes of undertaking
     research, including clinical research as approved by the Ministry of
     Health;
  2. License to process and manufacture any cannabis-based products that have
     been approved by the Ministry of Health for medical, therapeutic and
     scientific purposes (Processing Licence 170209113513) at designated
     premises of Apollon Jamaica; and
  3. License to provide therapeutic services using cannabis (Retail (Therapeutic
     Services) Licence 170209153635).

Financial Results:

The operating loss for the period was £60,000 (6 months ended 30 June 2019: loss £88,000). Loss before tax was £62,000 (6 months ended 30 June 2019: loss £88,000). There was a weighted loss per share of 0.19p (30 June 2019: loss per share 0.47p).

The unaudited interim results to 30 June 2020 have not been reviewed by the Company’s auditor.

Outlook

We have a very unique ability, being one of the few companies listed in London and indeed Europe, to actually undertake investments in the fast-growing legal medical cannabis sector. Although the global cannabis market has come off its highs of last year, the medical research side will become more significant as time goes by.

Having recently completed our initial investment in Apollon UK, we are actively pursuing to further increase our stake in this key investment further as discussed above. We fully appreciate that time is of the essence, and your board, its lawyers and indeed the Apollon UK team are working tirelessly to wrap up this transaction as soon as possible.

The Board would like to take this opportunity to thank our shareholders, staff and consultants for their continued support and I look forward to reporting further significant progress over the next period and beyond.

The directors of the Company accept responsibility for the contents of this announcement.

David Lenigas

Executive Chairman

20 July 2020.

For further information, please contact:

AfriAg Global plc:                                                         +44 (0) 78 7958 4153

David Lenigas

Corporate Adviser and Broker:

Peterhouse Capital Limited                                        +44 (0) 20 7469 0930

Guy Miller / Allie Feuerlein

Condensed Statement of Comprehensive Income (unaudited)
for the 6 months ended 30 June 2020


                                           6 months to 6 months to  Year ended

                                               30 June     30 June 31 December

                                                  2020        2019        2019

                                             Unaudited   Unaudited     Audited

                                      Note       £’000       £’000       £’000

Revenue                                              -           -           -

Cost of sales                                        -           -           -

Gross Profit                                         -           -           -

Administration expenses                           (60)        (88)       (206)

Operating (loss)                                  (60)        (88)       (206)

Loans advanced to subsidiaries                       -           -     (1,953)
written-off

Investment income                                  (2)           -        (23)

(Loss) before tax                                 (62)        (88)     (2,182)

Tax                                                  -           -           -

Retained (loss) for the period                    (62)        (88)     (2,182)

Other comprehensive income

Other comprehensive income for the                   -           -           -
period net of taxation

                                                     -           -           -
Total comprehensive income

Total comprehensive (loss) for the                (62)        (88)     (2,182)
period attributable to equity holders
of the parent

(Loss) per share (pence)                 2

Basic                                           (0.19)      (0.47)      (8.58)

Diluted                                         (0.19)      (0.47)      (8.58)



All of the revenues and loss above derived from continuing operations.

Condensed Statement of Financial Position (unaudited)
At 30 June 2020


                             30 June 2020 30 June 2019 31 December 2019

                                Unaudited    Unaudited          Audited

                                    £’000        £’000            £’000

Non-current assets

Trade and other receivables             -        1,836                -

Total non-current assets                -        1,836                -

Current assets

Trade and other receivables            18          628               16

Available for sale assets           1,160        1,030            1,167

Cash and cash equivalents              76          472               98

Total current assets                1,254        2,130            1,281

Total assets                        1,254        3,966            1,281

Current liabilities

Trade and other payables            (561)      (1,246)            (525)

Total current liabilities           (561)      (1,246)            (525)

Net current assets                    693          767              756

Net assets                            693        2,720              756

Equity

Share capital                       3,171        3,011            3,171

Share premium account               8,534        8,566            8,535

Share based payment reserve           128          146              128

Retained earnings                (11,140)      (9,003)         (11,078)

Total equity                          693        2,720              756



Condensed Statement of Changes in Equity (unaudited)
for the 6 months ended 30 June 2020


                 Share capital Share premium   Share based   Retained  Total
                                             payment reserve earnings

                         £’000         £’000           £’000    £’000   £’000

At 31 December           1,761         8,630             279  (9,047)   1,623
2018

(Loss) for the               -             -               -  (2,182) (2,182)
period

Total                        -             -               -  (2,182) (2,182)
Comprehensive
Income

Shares issued            1,410             -               -        -   1,410

Share issue                  -          (95)               -        -    (95)
costs

Transfer with                -             -           (151)      151       -
equity

Total                    1,410          (95)           (151)      151   1,315
contributions by
and
distributions to
owners of the
Company

At 31 December           3,171         8,535             128 (11,078)     756
2019

(Loss) for the               -             -               -     (62)    (62)
period

Total                        -             -               -     (62)    (62)
Comprehensive
Income

Shares issue                 -           (1)               -        -     (1)
costs

Total                        -           (1)               -        -     (1)
contributions by
and
distributions to
owners of the
Company

At 30 June 2020          3,171         8,534             128 (11,140)     693



Condensed Statement of Cash Flows (unaudited)
for the 6 months ended 30 June 2020


                                       6 months to  6 months to       Year ended

                                      30 June 2020 30 June 2019 31 December 2019

                                         Unaudited    Unaudited          Audited

                                             £’000        £’000            £’000

Cash flows from operations

Operating (loss)                              (60)         (88)            (206)

(Increase)/decrease in trade & other           (2)        (494)                1
receivables

Increase/(decrease) in trade & other            36          788               67
payables

Net cash used in operating activities         (26)          206            (138)

Investing activities

Receipts on sale of AFS investments              5            -                -

Payments on purchase of AFS                      -      (1,000)          (1,160)
investment

Net cash from investing activities               5      (1,000)          (1,160)

Financing activities

Issue of share capital                           -        1,250            1,410

Issue costs                                    (1)         (65)             (95)

Net cash from financing activities             (1)        1,185            1,315

Net increase/(decrease) in cash and           (22)          391               17
cash equivalents

Cash and cash equivalents at the                98           81               81
beginning of period

Cash and cash equivalents at the end            76          472               98
of period



Notes to the Condensed Interim Financial Information (unaudited)

1.General information

The condensed interim financial information for the period ended 30 June 2020 has not been audited or reviewed in accordance with the International Standard on Review Engagements 2410 issued by the Auditing Practices Board. The figures were prepared using applicable accounting policies and practices consistent with those adopted in the statutory accounts for the period ended 31 December 2019. The figures for the period ended 31 December 2019 have been extracted from these accounts, which have not been required to be delivered to the Isle of Man Registrar of Companies and do however contained an unqualified audit report.

The condensed interim financial information contained in this document does not constitute statutory accounts. In the opinion of the directors the financial information for this period fairly presents the financial position, result of operations and cash flows for this period.

The Condensed Interim Financial Information was approved by the Board of Directors on 20 July 2020.

Statement of compliance

These condensed interim financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union with the exception of International Accounting Standard (‘IAS’) 34 – Interim Financial Reporting. Accordingly, the interim financial statements do not include all of the information or disclosures required in the annual financial statements and should be read in conjunction with the Company’s 2019 annual financial statements.

2.(Loss) per share

The calculation of the (loss) per share is based on the (loss) attributable to ordinary shareholders divided by the weighted average number of shares in issue during the period.


                                             6 months to 6 months to        Year

                                                 30 June     30 June 31 December

                                                    2020        2019        2019

                                               Unaudited   Unaudited     Audited

                                                   £’000       £’000       £’000

(Loss) attributable to equity holders of the        (62)        (88)     (2,182)
Group

Weighted average number of ordinary shares         31.71       18.36       25.41
(millions)

(Loss) per share – basic                          (0.19)      (0.47)     (8.658)

(Loss) per share – diluted                        (0.19)      (0.47)      (8.58)



3.Events after the end of the reporting period

There are no events after the end of the reporting date to disclose.

4.A copy of this interim financial statement is available on the Company’s website: www.afriagglobal.com.