(“Eurocann”, “Valiant Investments” the “Group”, or the “Company”)
INTERIM RESULTS FOR THE 6 MONTHS ENDED
I am pleased to report on what has been a transformative period for the Company, which has laid the foundations for what the directors believe will be an exciting future in the burgeoning medicinal cannabis sector.
Such changes were formalised at a General Meeting held on
I was delighted to welcome two new directors to the board, namely
Jeremy is a former director, and now on the
Burns, meanwhile, was instrumental in driving the restructuring and recapitalisation of Eurocann forward, and he has a diverse skillset that will be of immeasurable value to the Company in both the short and medium term.
Concurrent with the change of name and new director appointments, we were delighted to announce that £262,742 has been raised pre-expenses. The fundraise immediately ensured that the Company had a sound financial position, which it rarely had prior to this restructuring.
Finally, along with the aforementioned changes, we were pleased to dispose of the holding in
THE HUMAN ENDOCANNABINOID SYSTEM
It was only in the 1990’s when scientists recognised that the human body has its own endocannabinoid system, which genetically dates back over 600 million years. Currently there are understood to be two primary types of endocannabinoid receptor, namely CB1 and CB2, of which both are found throughout the body.
The human body produces two cannabinoids, anandamide and 2-arachidonoylglycero (2-AG), which share a similar structure to the phytocannabinoids found in marijuana and hemp. These cannabinoids produced by the body correspond and help regulate our organs and nervous systems, and if our bodies produce insufficient amounts of these cannabinoids then a number of health-related issues can arise, such as inflammation and inflammatory conditions, insomnia, stress and anxiety, bone health, ocular health, and neurological conditions.
There are currently understood to be at least 113 different phytocannabinoids isolated from cannabis, of which tetrahydrocannabinol (THC) is the most widely recognised, due primarily to its psychoactive properties. However, for medicinal purposes, cannabidiol (CBD) has garnered wide attention and is being increasingly used for pain relief and for its anti-inflammatory benefits to human health.
However, CBD itself does not attach to either of the body’s two endocannabinoid receptors, but it does support the CB1 receptor by prohibiting the breakdown of the body’s anandamide, thereby increasing the bioavailability to attach to the CB1 receptor. This is one example of where looking at the full spectrum of phytocannabinoids could be sensible so as to give greater benefits to human health through also targeting the CB2 receptor, rather than focussing on just one phytocannabinoid to aid the CB1 receptor like CBD.
Fully understanding and targeting our body’s endocannabinoid system is likely to dominate medicine and nutrition for at least the next couple of decades as we expand our understanding of both the endocannabinoid network and the potential preventative and palliative benefits that phytocannabinoids could have on our health. We are excited as to the role that Eurocann will play in such developments.
The financial results cover the six-month period to
During the first half of the financial year, turnover was £35,284 (2018: £50,182), which reflects the revenue generated by the former 84.7% owned subsidiary,
My co-directors, Burns, Jeremy, and I, are all excited as to the potential for
I would like to take this opportunity to thank our shareholders, old and new, for their support of the Company, and to our advisors for their continued support. I would like to pay special thanks to
We look forward to updating shareholders on developments at Eurocann in the weeks ahead as we move forward in the exciting and transformative industry of medicinal cannabis.
The Directors of the Company accept responsibility for the contents of this announcement.
Telephone: 01366 500722
Telephone: 020 7220 9796
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
SIX MONTHS ENDED
Unaudited Audited Unaudited 6 month period ended year ended 6 month period ended 31 May 2019 30 November 2018 31 May GBP GBP 2018 GBP Revenue 35,284 109,578 50,182 Cost of sales (35,732) (70,137) (33,856) GROSS (LOSS)/PROFIT (448) 39,441 16,326 Administrative (43,380) (186,109) (106,067) expenses Other non-operating 2,036 5,298 2,150 income LOSS BEFORE TAX (41,792) (141,370) (87,591) Income tax expense - - - LOSS FOR THE (41,792) (141,370) (87,591) PERIOD/YEAR Attributable to: Equity holder of (36,420) (139,599) (87,156) the parent Non-controlling (5,372) (1,771) (435) interest LOSS PER SHARE Basic & diluted (0.01) (0.01) (
0.01) (penceper share)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Unaudited Audited Unaudited at 31 May 2019 At 30 November 2018 At 31 May 2018 GBP GBP GBP NON CURRENT ASSETS Intangible assets 90,007 112,396 131,030 Property, plant and 3,016 3,666 4,301 equipment Investments 28,630 63,294 80,905 121,653 179,356 216,236 CURRENT ASSETS Trade and other receivables 11,006 22,406 5,409 Investments 1,130 4,130 - Cash and cash equivalents 4,251 1,289 4,549 16,387 27,825 9,958 TOTAL ASSETS 138,040 207,181 226,194 EQUITY PLUS NON-CONTROLLING INTEREST ISSUED SHARE CAPITAL AND RESERVES Share capital 1,208,059 1,208,059 1,208,059 Share premium 1,067,510 1,067,510 1,067,510 Retained profits (2,177,572) (2,141,152) (2,088,709) SUBSCRIBED CAPITAL 97,997 134,517 186,860 Non-controlling interest (8,816) (3,444) (2,108) TOTAL EQUITY 89,181 131,073 184,752 CURRENT LIABILITIES Trade and other payables 48,859 76,108 41,442 TOTAL EQUITY AND LIABILITIES 138,040 207,181 226,194
1. The financial information contained in the interim report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006.
2. Basic loss per share has been calculated using the weighted average number of shares of 1,208,058,666 (30.11.18: 1,194,639,488 ; 31.5.18: 1,174,222,600). Given the loss per share, there are no dilutive instruments in issue.
3. The Directors of the issuer accept full responsibility for this announcement.