LONDON, Aug 15, 2018 /PRNewswire/ -- The directors of Ananda Developments Plc (NEX: ANA) are pleased to announce theacquisition of US$200,000 of convertible loan notes (the "CLNs") in iCAN Israel-Cannabis Ltd ("iCAN"), a globally recognised Israeli company focused on the medical cannabis industry.
Ananda's investment in iCAN provides investors with exposure to one of the leading global centres of scientific research and development in medical cannabis. iCAN has a number of business units and investments which have the ability to create value for Ananda. iCAN will also be a good source of investment opportunities in the future, especially in areas where there may be direct relevance to the legal changes in medical cannabis that are taking place in the UK.
The CLNs, which are convertible to September 2019, carry a compounding interest rate of 6% per annum and are convertible at a 20% discount to any valuation up to US$15,000,000 pursuant to the terms and conditions of the CLNs. Ananda has the option to increase its investment in iCAN as both companies develop.
Commenting on the investment, Ananda Executive Director, Melissa Sturgess said:
"We are delighted to have entered into and cemented this relationship with iCAN. We believe they represent the best in class in the Israel medical cannabis space and in global medical cannabis leadership. As well as supporting iCAN in its various activities and investments via this investment we see iCAN as being a strong source of investing ideas via its business units, iCAN Services and CannaTech. This investment means Ananda is embedded in one of the foremost global centres for cannabis scientific research at a time when significant changes are being made to cannabis laws in the UK and other countries."
CEO of iCAN, Saul Kaye, commented:
"We are thrilled that Ananda has invested in iCAN as we continue to increase our footprint in the burgeoning global cannabis industry. iCAN's expertise, rooted in Israel, the world's capital of cannabis R&D, has well positioned us to work with business and scientific partners around the world."
Seaspin Pty Ltd ("Seaspin") a company of which Charles Morgan is beneficial owner has assigned $100,000 of the CLNs to the Company. Seaspin has assigned its convertible at the initial cost of the investment and has, therefore, received no benefit from this transaction. Ananda will also benefit from the 6% compounding interest from the time of Seaspin's investment. Seaspin no longer holds any interest in iCAN. Charles Morgan is an Executive Director of Ananda and therefore the transaction constitutes a related party transaction pursuant to the NEX Exchange Growth Market Rules for Issuers. Charles Morgan recused himself from discussion pertaining to the investment in iCAN.
iCAN, established in 2015 and headquartered in Israel, has a number of business units and direct investments:
iCAN BUSINESS UNITS
Cannatech (100%) www.canna-tech.co
CannaTech is a leading cannabis symposium and is recognised globally as a thought leader in the industry. Providing an international platform for the creation of strategic partnerships and technological developments in the global Medical Cannabis industry, CannaTech is now held on an annual basis in Tel Aviv (since 2016) and globally including London in 2017, Sydney and Hong Kong in 2018 and for the first time next year in Panama.
iCAN Services (100%)
iCAN Services provides support to companies which are developing formulations and devices for the medical cannabis industry. Services are provided by a team of highly experienced industry insiders and science experts with an extended and engaged international network of vetted cannabis companies and professionals.
CannRx Technology, Inc (5%) www.cannrx.com
CannRx has created an advanced extraction technology called VCT, a patented vapour capture technology. The VCT creates liquid soluble cannabinoid profiles that can be used in downstream pharmaceuticals including oral dissolving tablets, sublinguals, topicals, patches and inhalation solutions.
CMTREX (20%) www.cmtrex.com
CMTREX is building a trading platform for cannabis. It is based on a platform developed in Israel for the trading of diamonds and will provide increased selectivity and price transparency in the trading of cannabis. The intent is that, using blockchain technology, CMTREX will assist in the establishment of a standardised, legally compliant, international market for the trading of cannabis.
About Ananda Developments PLC
Ananda Developments has been established as a company to invest in the developing market for medical 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. The Directors believe that this market is growing due to an increasing number of states in the USA, as well as other countries around the world, changing their laws to allow for products containing constituents of Medical Cannabis to be developed, approved and sold.
A copy of the Company's Admission Document is available at www.anandadevelopments.com and at www.nexexchange.com.
Ananda's investment strategy is to invest in companies, projects or products that are either progressing medical or therapeutic Cannabis research and development, or are developing or have already developed, products that contain Cannabis derived cannabinoids and require funding to progress work plans or commercialise products.
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014. The Directors of the Company accept responsibility for the contents of this announcement.
For further information, please contact:
Ananda Developments plc
Executive Director Melissa Sturgess
Investor Relations Jeremy Sturgess-Smith email@example.com +44(0)739-269-6517
Peterhouse Capital Limited
Corporate Finance Fungai Ndoro Mark Anwyl
Corporate Broker Lucy Williams Duncan Vasey +44(0)20-7469-0930
Media contact: Laura Kam firstname.lastname@example.org +972-54-806-8613
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SOURCE Ananda Developments Plc
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