11 July 2018
(“AfriAg Global” or the “Company”)
Update: Expansion of Investment Strategy to include Medical Cannabis
“The legalised global cannabis industry is a fast-growing sector with many international governments now legalising the use of cannabis products for medical use. Since out last announcement on this matter, the Company has engaged experienced
The Company’s expanded investment strategy will include investments in companies, projects or products that are either progressing medicinal cannabis research and development; producing or cultivating medicinal cannabis; or commercialising or marketing medicinal cannabis and its derivatives.
The Company is likely to be an active investor within this sector and acquire control of certain target companies although it may also consider acquiring non-controlling shareholdings. The proposed investments to be made by the Company may be in either quoted or unquoted securities and made by direct acquisition of an interest in companies, partnerships or joint ventures, or direct interests in projects and can be at any stage of development. Accordingly, the Company’s equity interest in a proposed investment may range from a minority position to 100 per cent. ownership and a controlling interest. The Directors primary objective is to achieve the best possible value over time for Shareholders, primarily through capital growth.
The Board believes that their collective experience, together with their extensive network of contacts, will assist them in the identification, evaluation and funding of appropriate investment opportunities within the medicinal cannabis space. When necessary, other external professionals will be engaged to assist in the due diligence on prospective targets and their management teams. The Directors will also consider appointing additional directors and /or advisors with relevant experience if the need arises.
There will be no limit on the number of projects into which the Company may invest within this space, and the Company may invest in a number of propositions or in just one investment, which may be deemed to be a reverse takeover pursuant to Rule 58 of the NEX Exchange Rules. The Company may need to raise additional funds for these purposes and may use both debt and/or equity.
It is anticipated that there may be opportunities to spin out businesses privately or via IPO where Shareholders may be able to benefit via distributions of cash and/or shares and/or rights to subscribe in listings. It is anticipated that the Company will hold investments for the medium to long term, although where opportunities exist for shorter term gains the Company may take advantage of such opportunities.
If the Company takes a controlling stake, the acquisition could trigger a Reverse Takeover under Rule 57 of the NEX Exchange Rules.
The directors of the Company accept responsibility for the contents of this announcement.
Afriag Global Plc+44 (0)20 7440 0640 David Lenigas(Executive Chairman) Peterhouse Capital Limited+44 (0)20 7469 0930 Guy Miller Fungai Ndoro
Notes to Editors:
The Company’s global distribution footprint has expanded considerably over the years, moving and distributing perishable food products by road, air and sea for many blue-chip companies around the globe.
AfriAg Global’s 100% owned subsidiary, AfriAg Marketing recorded revenues of £3.122 million for 2017, with its 40% owned agri-logistics group
AfriAg Global’s current Investment Strategy:
The Directors intend to seek to acquire a direct and/or an indirect interest in businesses involved in agriculture generally and the production, processing, logistics and distribution of agricultural produce.
The Company will initially focus on opportunities in
The Company may invest by way of purchasing quoted shares in appropriate companies, outright acquisition or by the acquisition of assets, including the intellectual property, of a relevant business, or by entering into partnerships or joint venture arrangements. Such investments may result in the Company acquiring the whole or part of a company (which in the case of an investment in a company may be private or listed on a stock exchange, and which may be pre-revenue), and such investments may constitute a minority stake in the company, partnership and/or joint venture in question. The Company will not have a separate investment manager.
The Company may be both an active and a passive investor depending on the nature of the individual investments. Although the Company intends to be a medium to long-term investor, the Directors will place no minimum or maximum limit on the length of time that any investment may be held and therefore shorter term disposal of any investments cannot be ruled out.
There will be no limit on the number of businesses into which the Company may invest, and the Company’s financial resources may be invested in a number of propositions or in just one investment.
Investments may be in all types of assets and there will be no investment restrictions. The Company will require additional funding as investments are made and new opportunities arise. The Directors may offer new Ordinary Shares by way of consideration as well as cash, thereby helping to preserve the Company’s cash resources for working capital. The Company may in appropriate circumstances, issue debt securities or otherwise borrow money to complete an investment. The Directors do not intend to acquire any cross-holdings in other corporate entities that have an interest in the Ordinary Shares.