(“Ananda” or the “Company”)
Notice of General Meeting
Further to the announcement released by the Company earlier today, a General Meeting is being convened to seek shareholder approval for the expansion of the geographical focus of the Company’s strategy to include, inter alia,
Notice of the General Meeting has been posted to shareholders and will shortly be available on the Company’s NEX webpage: https://www.nexexchange.com/member?securityid=2074814
The directors of the Company accept responsibility for the contents of this announcement.
Ananda Developments plc+44 (0)739 269 6517 Executive Director Melissa SturgessInvestor Relations firstname.lastname@example.org Jeremy Sturgess-Smith Peterhouse Capital Limited+44 (0)20 7469 0930 Corporate Finance Fungai Ndoro Mark AnwylCorporate Broker Lucy Williams Duncan Vasey Celicourt Communications+44 (0)20 7520 9261 Mark Atelme Joanna Boon
Below is an extract from the letter to shareholders attached to the General Meeting circular, without material change:
ADOPTION OF AMENDED INVESTMENT STRATEGY
Earlier today, Ananda announced the conditional acquisition of a 15 per cent. stake in
Accordingly, the Company is convening a General Meeting, at which a resolution will be proposed to adopt the Amended Investment Strategy. The purpose of this Document is to set out the background to and the reasons for the proposed amendment to the Existing Investment Strategy.
Amended Investment Strategy
Ananda was established to invest in the developing market for medicinal or therapeutic Cannabis derivatives, or related products, including but not limited to nutraceuticals, dietary supplements and cosmetic products which contain Cannabis or hemp derived cannabinoids.
At Admission, the Company’s strategy was focused specifically on companies, projects or products in
The Company has identified what the Directors and the Company’s Senior Investment Adviser, Dr
The Board believes that the investment in LHT is a good opportunity for Ananda to gain exposure to the Medicinal Cannabis sector as it develops across
The Directors believe that they, together with
Set out at the end of this Document is the Notice convening the General Meeting to be held at
Action to be Taken
A Form of Proxy for use at the General Meeting is enclosed with this Document. The Form of Proxy should be completed and signed in accordance with the instructions thereon and returned to the Company’s Registrars,
The Directors consider that adoption of the Amended Investment Strategy is in the best interests of the Company and its Shareholders as a whole and unanimously recommend Shareholders to vote in favour of the Resolution to be proposed at the General Meeting as they intend to do in respect of the 69,722,222 Ordinary Shares that they collectively hold, representing 21.18 per cent of the Ordinary Shares in issue.
APPENDIX I: AMENDED INVESTMENT STRATEGY
Set out below is the investment strategy which would apply to the Company if Shareholder approval is obtained at the General Meeting.
The Company has been established to invest in the developing market for medicinal or therapeutic Cannabis derivative, or related products, including but not limited to nutraceuticals, dietary supplements and cosmetic products which contain Cannabis or hemp (Cannabis which contains less than 0.2% tetrahydrocannabinol (“THC”) derived cannabinoids. The Directors believe that the market for products which are based on or contain Cannabis derived cannabinoids is growing strongly due to the increased awareness of the benefits of cannabinoids to various aspects of health and because they are now legal in an increasing number of countries around the world.
Ananda’s investment strategy is to invest in companies, projects or products that are either progressing medicinal/therapeutic Cannabis research and development, are developing or have already developed products and require funding to progress plans or commercialise products. Ananda will look to invest in companies and projects in
Whilst the Directors will be principally focused on making investments in private businesses and projects, they would not rule out investing in listed businesses if that presents, in their judgment, an appropriate opportunity for Shareholders. In addition, the Directors will consider the acquisition of a business or businesses. The Directors primary objective is to achieve the best possible value over time for Shareholders, primarily through capital growth but potentially, in the future and only when felt prudent, dividend income.
The Company intends to be an active investor in situations where it can make a clear contribution to the progress and development of the investment. In more substantial investment opportunities, the Directors expect that the Company will be a passive investor.
The Directors believe that their collective experience and that of
There will be no limit on the number of projects into which the Company may invest, 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 returns to Shareholders will be delivered initially through appreciation in the price of the Ordinary Shares rather than via dividends or other forms of capital distribution. In addition, 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.
The Directors have been advised that that under section 20 of MDA 1971, a person or corporate body may commit a potential offence in the
The Directors have been advised that as no offence is committed under section 20 of the MDA 1971, there would be no liability to a section 19 MDA 1971 offence, which details the arguably similar offence of incitement to commit an offence under other provisions of the MDA 1971.
The Directors are also aware that under the POCA 2002, an individual commits a potential offence if they (a) conceal, convert or transfer criminal property, (b) enter into or become involved in an arrangement to launder and/or (c) use, acquire or possess criminal property, in the
The main business activities of the Company will be its investments into those companies or projects conducting the lawful production of and research into Medicinal Cannabis in jurisdictions that are internationally recognised as having well-developed and reputable laws and regulations for the research and production of Cannabis and comply with the
Shareholders’ attention is drawn to the risk factors set out in Part II of the Company’s Admission Document dated