Sativa Wellness - Audited Results to 31 December 2020
RNS Number : 3242X
Sativa Wellness Group Inc.
04 May 2021
 

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY IN, INTO OR FROM ANY JURISDICTION (INCLUDING THE UNITED STATES) WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION.

Sativa Wellness Group Inc.
("Sativa" or "Sativa Wellness" the "Company" or the "Group")

4th May 2021

 

Sativa Wellness Group Announces the Publication of its Financial Statements

 

Sativa Wellness is pleased to announce the publication of it Financial Statements and Management, Discussion and Analysis report for year ended December 31, 2020. The key highlights of 2020 can be summarised as follows:

2020 Financial Results

 

The turnover for 2020 was £1,994K (C$3,478K) which was a 38% increase on the previous year (£1,449K) and the gross profit margin at 56% was a 4% increase on the 52% of the previous year. This, in the year of a pandemic, was a great success.

 

The net comprehensive deficit of £4,505K (2019: £3,797k) although still high, included a significant amount of transaction costs and consolidation costs that would otherwise not have been incurred given the reverse takeover of StillCanna Inc. ("StillCanna"). 

 

Quarter 1 and 2

The Company had only just launched its business plan for 2020 when the pandemic struck and everything came to a halt as the group had to close the Goodbody Wellness retail shops and many customers stopped trading so stopped buying our products. The Company responded by:

Reducing staffing levels and cutting costs across the business;

Utilising the UK production facility to produce hand sanitiser under the Goodbody brand and white label products for restaurants and businesses leading to record month to date in June followed by July, after some really lean months

 

The Company continued to drive forwards and launched the UK FSA Novel foods accreditation process in order to submit the product range for approval by March 31, 2021. This submission has since taken place.

 

Quarter 3 and 4

 

The Company brought together the various websites under one upgraded platform as the site goodbodystore.com and the new Vitamin D CBD range was launched

 

Most significantly the group completed the reverse takeover (the "Reverse Takeover") of StillCanna creating a vertically integrated European extraction to consumer cannabidiol ("CBD") company protecting the CBD supply chain and securing assets. The StillCanna acquisition added a CBD manufacturing facility in Poland, producing high quality CBD isolate and distillate, to the Company's asset base as well as other significant assets and cash. There followed a successful period of integration across the group.

 

Following completion of the Reverse Takeover, the resulting issuer was renamed Sativa Wellness Group Inc. and the Company's main trading market the CSE in Canada. The Company relisted on the AQSE in London as a secondary market as well as the Frankfurt and OTC exchanges.

 

Goodbody Botanicals Ltd, another group company, launched the Company's wellness clinics under the name of Goodbody Wellness starting with COVID testing using the companies shops in Bath and then Bristol. This was a huge success with December then becoming the best month to date.

 

Phytovista Laboratories Ltd, the groups CBD testing laboratory was given provisional ISO 17025 accreditation, since completing the process and achieving full accreditation in April 2021

 

Outlook

 

The most important aspect is that 2020 saw innovation to expand products and services in the wellness sector which will all contribute to growth in 2021. The clinics have grown to 30 as planned and the range of tests are increasing. The model is working well.

 

Novel food status should assist us to be seen as the supplier of choice in the CBD market for both raw oil and end products.

 

The ISO 17025 status of Phytovista laboratory and the combining of the UK and Polish laboratories will allow for the opportunity to expand both in the UK and into Europe.

 

The 2020 Financial Statements and Management Discussion and Analysis and further information regarding the Company can be found under the Company's profile on www.sedar.com.

 

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

 

 

SATIVA WELLNESS GROUP INC.

Consolidated Statements of Financial Position

(Expressed in GBP except where otherwise noted)

 

 

December 31, 2020

December 31, 2019

 

 

 

£

£

Assets

 

 

 

Cash and cash equivalents

 

1,872,597

1,992,531

Trade receivables

 

112,157

144,296

Refundable sales taxes receivable

 

66,012

147,019

Inventories

 

378,368

207,751

Assets held for sale

 

243,797

-

Prepaid expenses and deposits

 

109,830

47,578

Other current assets

 

105,617

161,209

Total Current Assets

 

2,888,378

Plant and equipment

 

3,332,938

670,596

Right of use assets

 

508,123

536,436

Intangible assets

 

765,125

-

Goodwill

 

714,972

572,072

Investments

 

-

72,201

Total Assets

 

8,209,536

       4,551,689

 

Liabilities

 

 

 

Accounts payable and accrued liabilities

 

1,066,908

349,358

Current portion of lease obligation

 

168,919

169,945

Other current liabilities

 

206,499

80,511

 

 

1,442,326

599,814

 

 

 

 

Long-term portion of lease obligation

 

330,721

450,664

Deferred Tax

 

152,000

-

Total Liabilities

 

1,925,047

1,050,478

Shareholders' Equity

 

 

 

Share capital

 

12,915,426

6,850,062

Other reserves

 

-

1,900,435

Share based payment reserve

 

2,874,218  

-

Accumulated other comprehensive Income

 

153,693

-

Deficit

 

(9,658,848)

(5,249,794)

Non-controlling interest

 

-

508

Shareholders' Equity

 

6,284,489

3,501,211

Total Liabilities and Shareholders' Equity

 

8,209,536

4,551,689

 

 

 

 

 

 

Approved and authorized for dissemination on behalf of the Board of Directors on April 29, 2021:

 

 

Marc Howells - Director

Anne Tew - Director

 

 

SATIVA WELLNESS GROUP INC.

Consolidated Statements of Loss and Comprehensive Loss

(Expressed in GBP except where otherwise noted)

 

 

For the year ended December 31

 

 

2020

2019

 

 

£

£

Revenue

 

1,994,224

1,449,493

Cost of sales

 

(870,531)

(695,296)

Gross profit

 

1,123,693

754,197

Operating Expenses

 

 

 

General and administrative expenses

 

(4,588,812)

(3,317,967)

Share-based payment charges

 

(1,105,837)

(729,659)

Depreciation and amortization

 

(471,387)

(259,539)

Asset impairment reversal

 

77,212

(89,412)

Interest income / (expense)

 

36,514

(11,402)

Fair value loss on listed investments

 

 (29,572)

(143,746)

Grant income

 

171,257

-

 

 

__________

_________

Loss before income taxes

 

(4,786,932)

(3,797,528)

Income tax recovery

 

128,172

-

Net loss

 

(4,658,760)

(3,797,528)

Items that may be reclassified to profit or loss

 

 

 

Currency translation adjustment

 

153,693

-

 

 

__________

_________

Comprehensive loss for the year

 

(4,505,067)

(3,797,528)

 

 

 

 

Loss per share

 

Pence

Pence

Basic and diluted

 

(2.77)

(4.77)

 

 

 

 

Weighted number of shares outstanding

 

162,451,094

79,604,232

 

On behalf of the Board of Directors,

 

Geremy Thomas

Chief Executive Officer

Sativa Wellness Group Inc.

+44 (0) 20 7971 1255

enquiries@sativawellnessgroup.com

 www.sativawellnessgroup.com

Anne Tew

Chief Financial Officer

Sativa Wellness Group Inc.

+44 (0) 20 7971 1255

enquiries@sativawellnessgroup.com

 www.sativawellnessgroup.com

 

 

AQSE Growth Market Corporate Adviser

Peterhouse Capital Limited

Guy Miller/Allie Feuerlein

+ 44 (0) 20 7220 9795 

 

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