Ananda Developments Plc Shareholder Update, CLN Redemption, Warrant Exercise

 
TIDMANA 
 
5 May 2023 
 
                            ANANDA DEVELOPMENTS PLC 
 
                          ("Ananda" or the "Company") 
 
   Shareholder Update, Redemption of Loan Notes and Transfer and Exercise of 
                                   Warrants 
 
Ananda's ambition is to be a leading provider of high-quality cannabis-based 
medicines for the treatment of complex, chronic inflammatory pain conditions. 
 
Highlights 
 
  * Tender documents are being finalised for construction of GMP1 cannabis 
    processing facility, for release to shortlisted construction companies 
  * Acceleration of the genetic stabilisation programme 
  * Early indications of superior plants from stable seeds compared with clones 
  * MRX1 cannabidiol based unlicensed medical cannabis oil now agreed in 
    principle to be listed with three medical cannabis clinics 
 
Ananda's CEO, Melissa Sturgess, commented: "The highlight of the month has been 
to see the quality of our cannabis plants grown from second-generation 
pure-bred seed genetics, compared with the same cultivar grown from clones. The 
results are excellent. We believe our strain stabilisation programme and plan 
to cultivate in the long term from stable seeds is a key part of a sound 
strategy." 
 
Commercial 
 
DJT medical cannabis flower, cultivation, and processing 
 
On site this month, the team at DJT Plants Limited ("DJT") has been preparing 
the tunnels for the 2023 cultivation activities. This work has been more 
intensive compared with preparations for last year's trial cultivation. The 
2023 cultivation will be conducted to comply with GACP (Good Agricultural and 
Collection Practice) to ensure the cultivation team gains experience in these 
processes ahead of commercial growing, subject to the requisite licences being 
obtained. Three cultivars have been selected from the results of the 2022 
trials and these plants are currently being readied for planting. The 
cannabinoid profiles of these cultivars have been identified by UK based 
medical cannabis specialised prescribers as having the potential to fulfil 
unmet medical needs. Following recent scientific findings that balanced THC:CBD 
cultivars have been efficacious in the treatment of cancer pain, DJT confirms 
that balanced strains are included in the 2023 plans. 
 
MRX: cannabidiol based medical cannabis oils 
 
MRX has continued to engage with medical cannabis prescribing clinics ahead of 
product launch and has now received agreements in principle for three clinics 
to carry MRX1, its first cannabidiol based unlicensed cannabis medicine. 
 
Research 
 
DJT Genetic Stabilisation 
 
As previously mentioned in Company announcements, there have been several 
recent breakthroughs in the Company's genetic stabilisation programme. These 
breakthroughs relate to: 
 
 1. The agents used to encourage male flowers to appear on a female cannabis 
    plant, and 
 2. The method used to pollinate the plant with itself. 
 
These method changes have now been implemented across the programme for several 
months and have led to a 50 per cent reduction in the time taken to move from 
one generation to the next. The method changes have also increased the number 
of seeds collected per plant by 100 per cent and have also improved the quality 
of the collected seeds. 
 
The second generation of seeds from the self-crossing programme were planted on 
30 March 2023 and, for comparison purposes, several clones of the same cultivar 
were also planted at the same time. The second-generation seeds have 3 more 
generations of self-crossing to complete before they are considered stable, 
however the difference between the seeds and clones at this point is 
significant. The seed grown plants demonstrate enhanced vigour, faster growth, 
expansive leaves, and a stronger root system when compared with the plants 
grown from clones, which exhibit an absence of tap root, age-related stress, 
and shorter, thicker leaves. 
 
These findings provide the Directors with confidence that cultivars grown from 
stable seed genetics in a commercial environment will be better performers than 
cultivars grown from clones. These findings show that propagating cannabis from 
seed leads to enhanced plant vigour, faster growth rates and strong root 
systems, with the likelihood of superior yields and plant health. Additionally, 
seed propagation has increased disease resistance, reducing the likelihood of 
pests and diseases which can compromise crop success. Producing seeds, storing 
them, and sprouting them requires orders of magnitude less space, time, and 
other resources. 
 
Randomised Controlled Trials (RCTs) using MRX1 cannabidiol based medical 
cannabis oil 
 
The Company's MRX1 medical cannabidiol oil formulation is being prepared for 
stability trials for the CIPN (Chemotherapy Induced Peripheral Neuropathy) and 
endometriosis RCTs to be conducted by the University of Edinburgh. The 
preparation work includes technical manufacturing documentation and validation 
of analytical methods to ensure the IMP (Investigative Medicinal Product) meets 
the MHRA Clinical Trial requirements for IMPD (Investigational Medicinal 
Product Dossier) submission. 
 
Redemption of Loan Notes and Transfer and Exercise of Warrants 
 
Ananda is pleased to announce that the Company has redeemed, in full, the £ 
550,000 of 12.5% Convertible Loan Notes ("CLNs") issued by the Company in July 
2021 ("Redemption"). The CLNs have been redeemed alongside the exercise of 
137,500,000 warrants to subscribe for ordinary shares of 0.2p each in the 
Company ("Ordinary Shares"; Warrant Shares"), as part of a transaction which is 
cash neutral for the Company. 
 
Redemption of CLNs 
 
The Company has redeemed the CLNs at par for a total cash cost of £550,000. 
Interest on the CLNs, which had been accruing at the rate of 12.5% per annum 
and was due to be settled in Ordinary Shares at the end of the CLNs' life, has 
been waived by the holders of the CLNs. 
 
Transfer and Exercise of Warrants 
 
On 19 December 2022, Charles Morgan, Chairman of the Company, was issued with, 
amongst other things, 574,084,000 warrants to subscribe for Ordinary Shares at 
a price of 0.4p per share (the "Warrants"). 
 
To facilitate Redemption and simplify the capital structure of Ananda, Charles 
Morgan has transferred 137,500,000 of the Warrants held by him to the holders 
of the CLNs, pro rata to their holdings of CLNs and for nil consideration. 
 
In return, the holders of the CLNs have used the proceeds from Redemption to 
exercise the Warrants transferred to them. Accordingly, a total of 137,500,000 
Warrant Shares have been issued at a price of 0.4p per share, generating gross 
proceeds of £550,000 for the Company. 
 
Concert Party Interests 
 
Charles Morgan, Ananda's Chairman and Melissa Sturgess, Ananda's Chief 
Executive Officer, each held £125,000 of CLNs, which have been redeemed, and 
each have been allotted 31,250,000 Warrant Shares following the exercise of the 
Warrants transferred to them. 
 
Charles Morgan and Melissa Sturgess (who are members of the Concert Party as 
defined in the circular to Ananda shareholders dated 24 November 2022) are 
husband and wife and therefore regarded as a single shareholder for the 
purposes of the City Code on Takeovers and Mergers (the "Code"). Following the 
exercise of the Warrants by them, Charles Morgan and Melissa Sturgess will 
together be interested in 1,532,667,014 Ordinary Shares, representing 53.33 per 
cent of the Enlarged Issued Share Capital. 
 
For so long as Charles Morgan and Melissa Sturgess together hold shares 
carrying more than 50 per cent of the Company's voting share capital, they may, 
whether or not the Concert Party still exists, increase their interest in the 
Ordinary Shares in the Company without incurring any obligation under Rule 9 of 
the Code to make a general offer for the remaining shares. 
 
Application for Admission 
 
Application will be made for the Warrant Shares to be admitted to trading on 
the AQSE Growth Market and admission is expected to become effective on 11 May 
2023. 
 
The Warrant Shares will, on admission, rank pari passu in all respects with the 
Ordinary Shares in issue and will rank in full for all dividends and other 
distributions hereafter declared, paid, or made on the ordinary share capital 
of the Company. 
 
Total Voting Rights 
 
Following the exercise of the Warrants, Ananda has 2,873,847,451 Ordinary 
Shares in issue, each share carrying the right to one vote. 
 
This figure of 2,873,847,451 Ordinary Shares may be used by shareholders in the 
Company as the denominator for the calculations by which they will determine if 
they are required to notify their interest in, or a change to their interest 
in, the share capital of the Company under the FCA's Disclosure and 
Transparency Rules. 
 
To stay abreast of the latest developments at Ananda, we encourage you to 
follow our social media channels which are: 
 
.              Instagram: https://instagram.com/anandadevelopments?igshid= 
YmMyMTA2M2Y= 
 
.              LinkedIn: https://www.linkedin.com/company/anadevelopments/ 
 
.              Twitter: https://twitter.com/anandaplc?s=21&t= 
9yeIC_xYCfzgDn7j26sfuA 
 
                                    -Ends- 
 
The Directors of the Company accept responsibility for the contents of this 
announcement. 
 
ANANDA DEVELOPMENTS PLC                                   [phone] 
                                                    [e-mail] 
Chief Executive Officer 
Melissa Sturgess 
 
Chief Operating Officer 
Jeremy Sturgess-Smith 
 
PETERHOUSE CAPITAL LIMTED                                 [phone] 
 
Corporate Finance 
Mark Anwyl 
 
Corporate Broking 
Lucy Williams 
Duncan Vasey 
 
About Ananda Developments 
 
Ananda is an AQSE-listed medical cannabis company whose ambition is to be a 
leading provider of high-quality medical cannabis for the treatment of complex, 
chronic inflammatory pain conditions for the UK and international markets. 
 
For more information, please visit: https://anandadevelopments.com 
 

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. 
 
  Notification and public disclosure of transactions by persons discharging 
    managerial responsibilities and persons closely associated with them. 
 
1   Details of the person discharging managerial responsibilities / person 
    closely associated 
 
a)  Name           Charles Morgan 
 
2   Reason for the notification 
 
a)  Position/      Chairman 
    status 
 
b)  Initial        Initial 
    notification / 
    Amendment 
 
3   Details of the issuer, emission allowance market participant, auction 
    platform, auctioneer, or auction monitor 
 
a)  Name           Ananda Developments plc 
 
b)  LEI            894500DFM8VOC5FW4X47 
 
4   Details of the transaction(s): section to be repeated for (i) each type of 
    instrument; (ii) each type of transaction; (iii) each date; and (iv) each 
    place where transactions have been conducted 
 
a)  Description of 
    the financial  Ordinary Shares 
    instrument, 
    type of        ISIN: GB00BDQPXQ60 
    instrument 
    Identification 
    code 
 
b)  Nature of the  Exercise of Warrants 
    transaction 
 
c)  Price(s) and   31,250,000 Ordinary Shares at 0.4p per share 
    volume(s) 
 
d)  Aggregated     N/A 
    information 
    - Aggregated 
    volume 
    - Price 
 
e)  Date of the    5 May 2023 
    transaction 
 
f)  Place of the   Off Market 
    transaction 
 
  Notification and public disclosure of transactions by persons discharging 
    managerial responsibilities and persons closely associated with them. 
 
1   Details of the person discharging managerial responsibilities / person 
    closely associated 
 
a)  Name           Melissa Sturgess 
 
2   Reason for the notification 
 
a)  Position/      Chief Executive Officer 
    status 
 
b)  Initial        Initial 
    notification / 
    Amendment 
 
3   Details of the issuer, emission allowance market participant, auction 
    platform, auctioneer, or auction monitor 
 
a)  Name           Ananda Developments plc 
 
b)  LEI            894500DFM8VOC5FW4X47 
 
4   Details of the transaction(s): section to be repeated for (i) each type of 
    instrument; (ii) each type of transaction; (iii) each date; and (iv) each 
    place where transactions have been conducted 
 
a)  Description of 
    the financial  Ordinary Shares 
    instrument, 
    type of        ISIN: GB00BDQPXQ60 
    instrument 
    Identification 
    code 
 
b)  Nature of the  Exercise of Warrants 
    transaction 
 
c)  Price(s) and   31,250,000 Ordinary Shares at 0.4p per share 
    volume(s) 
 
d)  Aggregated     N/A 
    information 
    - Aggregated 
    volume 
    - Price 
 
e)  Date of the    5 May 2023 
    transaction 
 
f)  Place of the   Off Market 
    transaction 
 
 
 
END 
 
 

(END) Dow Jones Newswires

May 05, 2023 05:26 ET (09:26 GMT)