25 October 2019

Ananda Developments Plc

(“Ananda”, the “Company” and, together with its subsidiaries, the “Group”)

Unaudited Interim Results for the six months ended 31 July 2019

The Directors present the interim results of Ananda Developments Plc for the period from 1 February 2019 to 31 July 2019.

UPDATE ON INVESTMENTS AND ACTIVITIES

Ananda’s vision is to become a significant player in the nascent medicinal and wellness cannabis sector.  In the period under review, the Company has continued to proceed with caution, given the continued uncertainty around the legislative and regulatory environment for medicinal cannabis and CBD in the UK.

ICAN Israel Cannabis Limited (“iCAN”)

iCAN has continued to expand its footprint with its CannaTech conferences, Incubator and consulting businesses.  In March 2019, iCAN raised a further CAD$4,000,000 from a group of Canadian investors via a loan note that is convertible into shares at a valuation of USD$20,000,000.

Ananda holds USD$200,000 of loan notes convertible at a maximum valuation of USD$12,000,000.

Liberty Herbal Technologies Limited (“LHT”)

LHT launched hapac^® in Italy in late 2018.  LHT was founded by ex-British American Tobacco executives who have developed hapac^®, a novel system for the inhalation of medicinal cannabis.  Sales of hapac^® commenced over the 2018/2019 New Year period and, after customer feedback, the company made some changes to the product offering and the inhalation device.  In May and June 2019, sales of devices and sachets had responded well to the changes and sales also commenced online.  In July 2019, however, a review of the packaging of cannabis-based products initiated by the Italian government resulted in all CBD products being removed from shelves and warehouses whilst a legal hearing is held in the Parma Court.  LHT maintains that its products comply with all relevant laws in Italy and that sales will recommence when the hearings are complete. Since the end of the period LHT has progressed its plans to enter the Canadian and North American markets.

Tiamat Agriculture Limited (“Tiamat”) and DJT Group Limited (“DJT”)

Shareholders supported a series of resolutions at a General Meeting in June 2019, to increase the reach of the Company through the acquisition of Tiamat, which enables Ananda to pursue a strategy to seek the grant of a Home Office Licence for the cultivation of >0.2% THC cannabis.  Tiamat subsequently created DJT Group Limited as a joint venture company with Anglia Salads Limited, a previous holder of a licence to grow >0.2% THC cannabis and an experienced medicinal cannabis grower.  DJT made good progress in preparing for the formal licence application during the period. There were no monetary transactions in the reporting period. Subsequent to the period end, on 14 October 2019, DJT Plants Limited, a wholly owned subsidiary of DJT, submitted a formal application for a licence to the Drugs and Firearms Licencing Unit of the Home Office.

Capital raising and other corporate information

During the period the Company raised £400,000 of new capital.  Most of the proceeds of this fundraising were advanced by the Company to Tiamat to fund the Home Office Licence application process, with the balance being used by Ananda for general working capital purposes. During the period, 70% of the Group’s expenses were directly related to the application for the Home Office Licence.

During the period, Tiamat Agriculture Limited and Tiamat Australia Pty were incorporated.  They became wholly owned subsidiaries of Ananda and no monetary values, apart from £1 of consideration, changed hands.

Results

The statement of consolidated comprehensive income shows the loss for six-month period to 31 July 2019 of £435,859.  The Group is in an early stage of development and the directors consider the loss for the period to be line with expectations.  The directors do not recommend the payment of a dividend.

This report was approved by the Board and signed on its behalf.

Melissa Sturgess, Director

25 October 2019

Consolidated Interim Statement of Comprehensive Income

Period Ended 31 July 2019

                        6 months to 31 July Period ended 31 Period ended 31 July
                                       2019    January 2019                 2018
                                  Unaudited         Audited            Unaudited

                   Note                   £               £                    £

Administrative                    (439,881)       (368,299)            (199,520)
expenses

Interest received                     4,627           4,061                    -

Loss from                         (435,254)       (364,238)            (199,520)
operations

Taxation                                  -               -                    -

Foreign Exchange    1                 (605)               -                  (5)
Translation Gain /
(Loss)

Total loss for the                (435,859)       (364,238)            (199,525)
period

   

Earnings per share

Basic and diluted earnings per share (pence) 2 (0.10p) (0.11p) (0.06p)

There was no other comprehensive income in the period.

Consolidated Interim Statement of Financial Position

Period Ended 31 July 2019

                                      Group         Company              Company
                        6 months to 31 July Period ended 31 Period ended 31 July
                                       2019    January 2019                 2018
                                  Unaudited         Audited            Unaudited

                                          £               £                    £

Fixed assets

Investments                         460,000         460,000                    -

                                    460,000         460,000                    -

Current assets

Loan Notes                          159,185         159,185                    -

Debtors                              31,234          18,191               43,644

Cash at bank and in                 162,418         141,254              983,760
hand

                                    352,837         318,630            1,027,404

Creditors: amounts                   87,594          17,528               51,929
falling due within one
year.


Net current assets                  265,243         301,102              975,475

Total assets less                   725,243         761,102              975,475
current liabilities

Capital and reserves

Share capital                       836,111         658,333              658,333

Share premium                       689,229         467,007              516,667

Retained earnings                 (800,097)       (364,238)            (199,525)

Total equity and                    725,243         761,102              975,475
liabilities

The consolidated interim financial statements were approved and authorised for issue by the Board and were signed on its behalf by:

Melissa Sturgess

Director

25 October 2019

Consolidated Interim Statement of Changes in Equity

Period Ended 31 July 2019

GROUP                    Share Capital Share Premium Retained Earnings     Total

                                     £             £                 £         £

As at 1 February 2019          658,333       467,007         (364,238)   761,102

Total comprehensive loss             -             -         (435,859) (435,859)
for the period

Proceeds from share            177,778       222,222                 -   400,000
Issue

Transactions with owners       177,778       222,222                 -   400,000

Balance at 31 July 2019        836,111       689,229         (800,097)   725,243

   

GROUP                    Share Capital Share Premium Retained Earnings     Total

                                     £             £                 £         £

On incorporation as at         100,000             -                 -   100,000
19 January 2018

Total comprehensive loss             -             -         (364,238) (364,238)
for the period

Proceeds from share            558,333       467,007                 - 1,025,340
Issue

Transactions with owners       558,333       467,007                 - 1,025,340

Balance at 31 January          658,333       467,007         (364,238)   761,102
2019

   

GROUP                    Share Capital Share Premium Retained Earnings     Total

                                     £             £                 £         £

On incorporation as at         100,000             -                 -   100,000
19 January 2018

Total comprehensive loss             -             -         (199,525) (199,525)
for the period

Proceeds from share            558,333       516,667                 - 1,075,000
Issue

Transactions with owners       558,333       516,667                 - 1,075,000

Balance at 31 July 2018        658,333       516,667         (199,525)   975,475

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.

Consolidated Interim Statement of Cash Flows

Period Ended 31 July 2019

                           6 months to    Period ended Period ended 31 July 2018
                          31 July 2019 31 January 2019                 Unaudited
                             Unaudited         Audited

                                     £               £                         £

Cash flows from
operating activities

Cash outflow from            (378,836)       (364,900)                  (91,240)
operating activities

Net cash outflow from        (378,836)       (364,900)                  (91,240)
operating activities

Cash flows from
investing activities

Purchase of convertible              -       (159,186)                         -
loan notes

Purchase of investments              -       (460,000)                         -

Net cash used in                     -       (619,186)                         -
investing activities

Cash flows from
financing activities

Proceeds from issue of         400,000       1,125,340                 1,075,000
shares

Net increase in cash and        21,164         141,254                    91,240
cash equivalents

Cash and cash                  141,254               -                         -
equivalents at the
beginning of the period

Cash and cash                  162,418         141,254                   983,760
equivalents at the end
of the period

Notes to the Consolidated Interim Financial Statements

Period Ended 31 July 2019

ACCOUNTING POLICIES

General information

Ananda Developments Plc’s consolidated interim financial statements are presented in British Pound Sterling (GBP) which is the functional currency of the parent company.  These interim financial statements were approved for issue by the Board of Directors on 25 October 2019.

The financial information set out in these interim financial statements does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006.  The Group’s statutory financial statements for the year ended 31 January 2019 have been filed with the Registrar of Companies.  The auditor’s report on those financial statements was unqualified and did not contain a statement under Section 498(2) of the Companies Act 2006.

These consolidated interim results have not been audited nor have they been reviewed by the Group’s auditors under ISRE 2410 of the Auditing Practices Board.

Basis of preparation

These interim financial statements are for the six-month period ended 31 July 2019.  They have been prepared following the recognition and measurement principles of FRS 102.  They do not include all of the information required for full annual financial statements and should be read in conjunction with the financial statements for the period ended 31 January 2019. 

These interim financial statements have been prepared on a going concern basis which the Directors believe to be appropriate.

These interim financial statements have been prepared in accordance with the accounting policies adopted in the financial statements for the period ended 31 January 2019.

Business Combinations

These group financial statements consolidate those of the Company and its subsidiaries, Tiamat Agriculture Ltd and Tiamat Australia Pty.  The subsidiaries are fully consolidated from the date on which control is transferred to the Group.  All intra-group transactions, balances, income and expenses are eliminated on consolidated.  Uniform accounting policies are applied by the Group companies to ensure consistency.

1.           Foreign currency transactions

Transactions in foreign currencies are translated to GBP at the exchange rates at the dates of the transactions.  Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated to GBP at the exchange rate on that date.  Foreign exchange differences arising on translation are recognised in the statement of comprehensive income. 

2.           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.

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Market Abuse Regulation (MAR) Disclosure

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.