ANA Ana Hldgs

31 October 2022

ANANDA DEVELOPMENTS PLC

(“Ananda” or the “Company”)

Unaudited Interim Results for the six months ended 31 July 2022

The Directors present the interim results of Ananda Developments Plc (“the Company” or “Ananda”) for the period from 1 February 2022 to 31 July 2022.

UPDATE ON INVESTMENTS AND ACTIVITIES

Ananda’s ambition is to be a UK-based grower and provider of carbon zero, consistent, high quality medical cannabis for domestic and international markets.

DJT Group Limited (“DJT Group”)

DJT Group is owned 50% by the Company and 50% by Anglia Salads Limited, a member of the JEPCO group of Companies. DJT Group is the 100% owner of DJT Plants Limited (“DJT”).

DJT was granted a licence from the UK government Home Office to grow >0.2% THC medical cannabis for research in April 2021. The construction of the research facility comprising growing chapelles and laboratory research facility was completed in February 2022. 

In February 2022, DJT commenced its Single Seed Decent (SSD) genetic stabilisation programme at its medical cannabis research facility. This is the starting point for the first stage of DJT’s research programme which is designed to create a library of stable cannabis genetics in order to ‘match’ cannabis plant profiles with clinical indications.  The research plan involves self-crossing a selection of cannabis strains for six generations. 

DJT also undertook field trials in its multi-chapelle growing structures during the period.  During July 2022, the growing team was commencing the first harvest and compiling data for later analysis.  These trials are being used to determine which stable strains produce chemovars with desired metabolic profiles and which thrive in DJT’s  growing conditions, and to help define growing, fertilisation, irrigation and harvesting protocols which will be useful in a commercial growing environment.  Ananda is growing in natural season conditions with no artificial light and no artificial heat.  The ability to grow successfully in this manner will offer Ananda significant capital and operating cost benefits in its planned commercial setting.

During the interim period, DJT appointed two key members of its senior operational team, spearheaded by Dr. Nigel Gale as Head of Plant Science and Steven Murray as Head of Cultivation. 

The Company also progressed the proposed acquisition of the 50% of DJT it does not own. In this regard, the Company hopes to update the market shortly.  

The directors thank the Ananda and DJT teams for their commitment and hard work during the period and thank shareholders for their ongoing support.

On behalf of the board.

Melissa Sturgess, Chief Executive Officer

31 October 2022

Interim Statement of Comprehensive Income

Period Ended 31 July 2022

There was no other comprehensive income in the period.

Interim Statement of Financial Position                  

Period Ended 31 July 2022

Interim Statement of Changes in Equity

Period Ended 31 July 2022

Notes to the Interim Financial Statements

Period Ended 31 July 2022

ACCOUNTING POLICIES

General information

Ananda Developments Plc’s interim financial statements are presented in British Pound Sterling (GBP) which is the functional currency of the parent company.  These interim financial statements were approved for issue by the Board of Directors on 31 October 2022.

The financial information set out in these interim financial statements does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006.  The Company’s statutory financial statements for the year ended 31 January 2022 have been filed with the Registrar of Companies.  The auditor’s report on those financial statements was unqualified and did not contain a statement under Section 498(2) of the Companies Act 2006.

These interim results have not been audited nor have they been reviewed by the Company’s auditors under ISRE 2410 of the Auditing Practices Board.

Basis of preparation

These interim financial statements are for the six-month period ended 31 July 2022.  They have been prepared following the recognition and measurement principles of FRS 102.  They do not include all of the information required for full annual financial statements and should be read in conjunction with the financial statements for the period ended 31 January 2022. 

These interim financial statements have been prepared on a going concern basis which the Directors believe to be appropriate.

These interim financial statements have been prepared in accordance with the accounting policies adopted in the financial statements for the period ended 31 January 2022.

        1. Foreign currency transactions

Transactions in foreign currencies are translated to GBP at the exchange rates at the dates of the transactions.  Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated to GBP at the exchange rate on that date.  Foreign exchange differences arising on translation are recognised in the statement of comprehensive income. 

         2. Earnings per share

The calculation of earnings per share is based on the loss attributable to ordinary shareholders divided by the average number of shares in issue during the period.

SUBSEQUENT EVENTS

The Acquisition of DJT (the ‘Acquisition’)

As shareholders will be aware, completion of the acquisition of the remaining 50% of DJT has taken longer than initially contemplated. Despite this delay, work at DJT has nevertheless progressed rapidly, evolving beyond the scope and costs envisioned under the Heads of Terms announced on 8 June 2021.  Ananda has therefore renegotiated the terms of the Acquisition.

In recognition of the delay, and the level of funding provided by Ananda to DJT, the parties have agreed to amend the terms of the Acquisition, such that the consideration payable to JEPCO will now be £3.2 million (previously £7.3 million), which will be satisfied by the allotment of 350,000,000 (previously 790,538,866) ordinary shares of 0.2p each in the Company ( “Consideration Shares”).

The Consideration Shares are still being valued at 0.925p per share, the price prevailing at 8 June 2021, and will represent 29.9% of the Company’s enlarged issued share capital. The reduced consideration means that the Acquisition no longer requires a waiver under Rule 9 of the City Code on Takeovers and Mergers. However, shareholders will be given the opportunity to approve the Acquisition at the General Meeting to be convened in relation to the Debt Proposals announced on 18 October 2022.

On completion of the Acquisition, one director of Anglia Salads, namely Stuart Piccaver, will join the board of Ananda, rather than two.

-Ends-

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

Market Abuse Regulation (MAR) Disclosure

The information contained within this announcement is deemed by the Company to constitute inside information. Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

About Ananda Developments

Ananda is an AQSE-listed medical cannabis company creating UK-based operations to grow and provide carbon zero, consistent, medical cannabis for the UK and international markets. 

The UK medical cannabis market is predicted to be worth £450m by 2025 and the European market is predicted to be worth USD4.2bn by 2027.

For more information, please visit: https://anandadevelopments.com/