Voyager Life PLC - Operations update

18 May 2023

Voyager Life plc

("Voyager" or the "Company") 

Operations update

Voyager, the health and wellness company supplying high-quality Cannabidiol (CBD), hemp seed oil and hemp-related products, is pleased to provide the following update on its operations.

Highlights:

·    Integration of Polish CBD extraction and manufacturing facility proceeding well

·   Several prospective new customers following the Company's pan-European vertical integration model

·    UK revenue up c. 73% to c. £307,000 (unaudited) in the year to 31 March 2023

·    Approximately 68% average gross margin across all UK business lines

·    £125,000 UK inventory at cost at 31 March 2023

·   Approximately £1 million gross cash at 31 March 2023 (including £500,000 held in escrow for completion of the Polish acquisition)

·    One of the largest ranges of CBD products in the UK - over 70 formulated products and, in its own stores, over 400 stock-keeping units (SKUs)

On 1 January 2023, Voyager assumed operational control of the extraction and manufacturing facility in Poland, which was acquired from Goodbody Health Limited as announced on 16 December 2022.  The Company is pleased to report that the integration of its Polish operations with the rest of the business is proceeding well, demonstrated by the enhancement of its manufacturing capabilities.  The Polish team has begun developing a new range of CBD oils for the Voyager brand as well as fulfilling a substantial order of pet products for a major UK national retailer.

Even more significant are the potential new customers that Voyager is currently engaging in negotiations with. The Company's vertical integration has enabled it to offer a wide range of products and services in both the UK and EU and potentially service orders of considerably higher volumes.  This has opened up a bigger market opportunity for the Company and examples of some of the larger orders on which Voyager is currently finalising terms are the following:

·    Supplying a range of products to a prominent CBD brand that distributes throughout the UK

·    Single product manufacturing under licence for European distribution

·    Fulfilling monthly recurring orders for bulk supply of CBD isolate to a European market

·  Engaging in licensed manufacturing of multiple products to support expansion into European markets by a US brand

·    Collaborating with a European partner to support high-profile brand

Although there can be no guarantee that any or all of these negotiations will materialise into firm contracts, based on the depth of conversations to date management are optimistic that several will move into the production phase shortly.  To provide perspective on the importance of these opportunities, it is worth noting that each individual opportunity holds the potential to exceed Voyager's revenue from last year.

In anticipation of a successful outcome, the Company has begun the process of sourcing additional staff and machinery to facilitate the increase in volumes, if and when the time comes.  If the above contracts proceed, then management expects production to take place over the summer months.

With contract manufacturing driving Voyager's growth, the Company continues to make progress across its other business lines:

Retail: Work is underway to update the Company's social media strategy and customer website and Voyager is working with a renowned CBD commentator in this regard.  Treatment rooms and outdoor seating have been added to some of its stores to boost footfall.  The rewards app launched earlier in the year continues to be popular with customers.  Ascend Skincare has recently been recommended in the Independent newspaper.

Wholesale: The sales team has been enhanced and Voyager is currently exploring direct sales models for its branded products.  As referred to above, several products in its pet range will shortly be stocked by a national retailer in the UK.

Raw materials: Voyager continues to extend its presence on broker websites and marketplaces and offer competitive pricing and innovative solutions.  Work has been done on the facility in Poland to reduce operating costs, particularly by implementing a recovery and reuse of certain solvents and a more efficient cooling process.

With greater control over the supply chain and its own manufacturing, Voyager has also been able to balance many of the price rises of materials that are prevalent at the moment.  Furthermore, both with its own brand and also in respect of trade customer orders, the Company continues to offer competitive and, in some instances, lower pricing.

Planning for the audit is well underway and, noting the Group's increased complexity (particularly given the addition of the operations in Poland), Voyager expects to conclude its accounts for the year to 31 March 2023 on a similar timetable to last year, with an announcement of its final results in August 2023 and the Company's annual general meeting in September 2023.

Nick Tulloch, Chief Executive Officer and Founder of Voyager, said: "Voyager's objectives for the Polish CBD extraction & manufacturing facility were to extend the Company's business in Europe and complete our vertical integration.  In a little over four months of operations, it is apparent that the enlarged business is well positioned for success.  Not only have the number of customer enquiries increased but the prospective order size is materially larger.  As Voyager continues to focus on service provision and expand contract manufacturing to others in the CBD sector, order volumes will be a key determinant of success and the group's ability to win and fulfil repeat orders from larger customers is our fastest route to profitability.

"Voyager is one of very few CBD companies worldwide that is truly vertically integrated with extraction, manufacturing and retail operations within the group.  To date, we have spent around £2.5 million building our business, considerably less than many others in the sector have committed.  Despite this, we believe we have a business that is more advanced and more comprehensive in its capabilities than the majority of our peer group.  It is our belief that this diversified business model will continue to create further opportunities for us to derive revenue from the rapidly growing CBD sector."

This announcement contains inside information for the purposes of the UK Market Abuse Regulation and the Directors of the Company are responsible for the release of this announcement.

Caution regarding forward looking statements

Certain statements in this announcement, are, or may be deemed to be, forward looking statements. Forward looking statements are identified by their use of terms and phrases such as ''believe'', ''could'', "should" ''envisage'', ''estimate'', ''intend'', ''may'', ''plan'', ''potentially'', "expect", ''will'' or the negative of those, variations or comparable expressions, including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities. Such forward looking statements reflect the Directors' current beliefs and assumptions and are based on information currently available to the Directors.

ENDS

Enquiries:

Notes to Editors:

About Voyager

Voyager was founded in 2020 and is based in Perth, Scotland.  The Company's primary objective is the formulation and supply of high quality CBD and hemp seed oil products although it also produces several other complementary products, the majority of which are manufactured from the hemp plant.  Its product categories include a pet range which has rapidly developed into one of the Company's best sellers.   The Company sells online, through third party stores and in its own stores which are located in St Andrews, Edinburgh and Dundee.  The Company has two principal retail brands: Voyager, focused on health & wellness and petcare, and Ascend Skincare, its beauty range.  Voyager products are currently available from Cornwall to Shetland in over 150 online and brick-and-mortar outlets. In December 2022, with the aim of expanding its manufacturing capability for EU markets, Voyager purchased a state-of-the-art CBD extraction and manufacturing facility in Poland.

The Company's philosophy of plant-based health and wellness is embodied in its mission statement and hashtag of "Choose you". With an experienced team and a product line created in line with the UK's regulatory regime, Voyager aims to become the trusted brand in this increasingly popular health and wellness space.

Through Voyager's bespoke skincare product creation and development division, voyagerCann, the Company also offers a full turnkey service to other CBD, skincare and cosmetics brands assisting them in developing and launching new products with manufacturing and distribution facilities in Scotland and Poland.

Website and social media links:

Voyager:

https://voyagercbd.com/

https://www.instagram.com/voyagercbd/

https://twitter.com/voyagercbd

https://www.linkedin.com/company/voyager-cbd/

https://www.facebook.com/voyagercbd/

voyagerCann:

https://voyagercann.com/

https://www.instagram.com/voyagercann/

https://twitter.com/voyagercann/

https://www.linkedin.com/company/voyagercann/

https://www.facebook.com/voyagercann/