Eurocann International Plc - Interim Results for the 6 Months Ended 31 May 2019 PR Newswire

30 August 2019

EUROCANN INTERNATIONAL PLC
(“Eurocann”, “Valiant Investments” the “Group”, or the “Company”)

INTERIM RESULTS FOR THE 6 MONTHS ENDED 31 MAY 2019

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 21 June 2019, where shareholders approved a number of resolutions to enhance the outlook for the Company as a listed entity. Following the meeting, the Company’s name was changed from Valiant Investments to Eurocann International; a change formerly recognised at the Registrar of Companies – Companies House - on 1 August 2019.

I was delighted to welcome two new directors to the board, namely Jeremy Ross and Burns Singh Tennent-Bhohi, both of whom bring a wide range of operational and corporate experience to Eurocann.

Jeremy is a former director, and now on the Advisory Board, of Speakeasy Cannabis Club Ltd, a Canadian company that intends to grow, produce, and cultivate cannabis for medical purposes on its real estate in British Columbia. The contacts and deal-flow that Jeremy has access to will be invaluable as Eurocann moves from being an investment vehicle to an operational company.

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 Flamethrower plc, and to adopt a new investing strategy in the medicinal cannabis sector. Specifically, Eurocann’s new investment strategy is to invest in companies, projects, or products that are either progressing medicinal/therapeutic cannabis research and development, or are developing, or have already developed products, and require funding to progress plans or commercialise products.

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.

FINANCIALS

The financial results cover the six-month period to 31 May 2019, which is prior to the date of the General Meeting (21 June), when the recapitalisation and restructuring was duly approved by shareholders.

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, Flamethrower plc. The loss for the period was £41,792 (2018: £87,591), and the basic loss per share was 0.01p (2018: 0.01p).

OUTLOOK

My co-directors, Burns, Jeremy, and I, are all excited as to the potential for Eurocann International following the recent restructuring and recapitalisation. We are sourcing potential opportunities and undertaking due diligence, and we hope to announce a maiden transaction for the Company in the not too distant future.

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 Guy Miller at Peterhouse Capital for the invaluable role he has played in transforming the Company and its prospects over recent months.

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.

Conrad Windham
Executive Director, Eurocann International plc
28 August 2019

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

ENQUIRIES:

Company
Eurocann International plc
Conrad Windham/ Burns Singh Tennent-Bhohi
Telephone: 01366 500722

Corporate Adviser
Peterhouse Capital Limited
Guy Miller and Mark Anwyl
Telephone: 020 7220 9796

EUROCANN INTERNATIONAL PLC (FORMERLY KNOWN AS VALIANT INVESTMENTS PLC)
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
SIX MONTHS ENDED 31 MAY 2019


                               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)
(pence per share)




EUROCANN INTERNATIONAL PLC (FORMERLY KNOWN AS VALIANT INVESTMENTS PLC)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MAY 2019


                                  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




 

Notes:

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.