TIDMANA
RNS Number : 1445R
Ananda Developments PLC
24 October 2023
24 October 2023
ANANDA DEVELOPMENTS PLC
("Ananda" or the "Company")
Unaudited Interim Results for the six months ended 31 July
2023
The Directors present the consolidated interim results of Ananda
Developments Plc, together with its subsidiaries (the "Group") for
the period from 1 February 2023 to 31 July 2023.
UPDATE ON OPERATIONS
Ananda's ambition is to be a leading provider of
cannabinoid-based medicines for the treatment of complex, chronic
inflammatory pain conditions.
Ananda had two main areas of focus during the period, those
being the ongoing cannabis cultivation, trials and genetic
stabilisation work in Ananda's wholly owned subsidiary DJT Plants
Limited ("DJT") and the drug discovery process, clinical trials and
market launch of various cannabis based unlicenced medicines via
its 100% owned subsidiary MRX Medical Limited ("MRX Medical").
MRX Medical
MRX Medical was acquired on 27 March 2023 via the acquisition of
100% of the shares of MRX Global Limited ("MRX") (which in turn
owns 100% of the shares of MRX Medical). MRX Medical has developed
a proprietary method to formulate cannabis medicines and three
proprietary cannabidiol ("CBD") based formulations. MRX1, MRX
Medical's first product, is to be used in two Phase II Randomised
Controlled Trials ("RCTs") to investigate the effectiveness of CBD
in chemotherapy induced peripheral neuropathy ("CIPN") and in
patients with endometriosis. After the end of the period, the
Company announced that the endometriosis trial is to be funded by
the Chief Scientist Office of NHS Scotland via a GBP300,000
non-dilutive grant. The CIPN trial has also received combined
commitments of GBP1.25 million in external grant funding and both
trials are to be carried out by leading investigators at the
University of Edinburgh.
MRX's cannabidiol formulations meet the requirements set out by
the National Institute for Health and Care Excellence ("NICE") for
research into the effectiveness of CBD with no or trace
tetrahydrocannabinol ("THC"). MRX1 and MRX2, MRX's second
formulation, were launched as unlicensed CBPM's (Cannabis Based
Products for Medicinal use in humans) on 27 July 2023.
In March 2023, the Company also raised a total of GBP427,400
(before expenses) via the issue of 142,466,667 ordinary shares of
0.2p each in the Company at a price of 0.3p per share.
As well as launching the medicines and having them listed on
three separate specialist clinic formularies, the MRX website was
launched in June 2023. The website provides potential prescribing
clinicians with a contact point with MRX via which they can obtain
technical data about the medicines, including ingredients,
formulation details, ingredient quality information and dosage
guidelines. In May 2023, the Company also announced that MRX had
filed patents over three cannabinoid formulations: MRX1, MRX2 and
its most recently developed formulation MRX3. These formulations
have been developed as cannabidiol-based medicines for the
treatment of a number of complex inflammatory indications which are
unmet by existing treatments. A fourth application was also filed
which covers a proprietary method for formulating these products.
As part of the acquisition of MRX, Professor Clive Page joined the
Board of Ananda as an independent non-executive Director. Clive is
Professor of Pharmacology at King's College London and Chair of the
British Pharmacological Society. Clive's main research interests
are in the pharmacology of inflammation and respiratory diseases,
and he has published over 250 scientific papers. Clive was the 2006
Co-Founder and previous Chairman of AIM quoted Verona Pharma plc,
which is now capitalized at more than US$1 billion and quoted on
NASDAQ. At the same time, Jeremy Sturgess-Smith was also appointed
to the Board as an executive director. Jeremy is a founding
employee of the Company, its finance director and also a director
of MRX Global and MRX Medical.
The Company also appointed SP Angel Corporate Finance LLP as its
Aquis Corporate Adviser and Broker during the period, a move
intended to help prepare the Company for a potential move to a more
senior stock exchange in the future and to gain access to SP
Angel's Healthcare research team, which lead to the release during
the period of the Company's first formal research report.
DJT
During the reporting period, work continued as DJT refined and
progressed its genetic stabilisation programme through to its third
generation, collecting 29,000 seeds across 45 genetic lines. DJT
now believes it has developed a set of protocols to successfully
self-pollinate cannabis and produce enough viable seeds to grow the
next generation of plants, each generation of which will be more
genetically homogenous than the previous one. This is a significant
achievement for a company like DJT and one that the Directors
believe will enable DJT to claim IP (Intellectual Property)
protections over the unique strains it is breeding.
The genetic stabilisation programme has undergone several
refinements and alterations to the methodology. These
methodological improvements have now been implemented across the
programme and have led to a 50 per cent reduction in the time taken
to move from one generation to the next. The improvements 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 three more generations of
self-crossing to complete before they are considered statistically
stable, however the difference between the seeds and clones at the
third generation 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.
From May - July, DJT also performed a second year of cannabis
cultivation trials in its low cost, low carbon cultivation
environment in Lincolnshire. This year, three strains with
promising cannabinoid and terpene profiles were selected for
growing trials. The strains were selected based on both the
performance of the first generation plants during the 2022
cultivation trials and the results of the detailed testing
performed on the strains. The results of this testing were received
in early 2023 and discussed in a Corporate Update released via RNS
on 6 February 2023. The results confirmed that DJT had successfully
grown high THC, balanced THC/CBD, and high CBD cultivars.
On 10 July 2023 Home Office representatives visited DJT Plants'
facility. This visit was a compliance visit as per the terms of the
DJT licence and standard Home Office practice. DJT passed the
compliance visit successfully. Two seasons of cultivation trials
have now been undertaken and the genetic stabilisation programme is
at the third generation of seeds. As a result, this phase of
research is now complete and DJT's costs were reduced whilst the
Company continues to plan for commercial cultivation.
Following the close of the period, Ananda announced that it is
pausing operations at the DJT cultivation facility to reduce
monthly cash burn. DJT is exploring opportunities to partner with a
university to attract third party grant funding to complete the
genetic stabilisation work. It can scale up commercial cannabis
cultivation rapidly, once the UK market has grown to a point where
investing the capital to construct the cannabis flower processing
and manufacturing facility is possible and makes financial sense
for shareholders.
In the period, the Group incurred a loss of GBP989,893 (Company
2023: GBP370,287) before tax, which solely represents operational
costs. Net assets of the Group at the interim point were
GBP4,842,853 (Company 2023: GBP7,707,958), the Group figure only
includes MRX Global Limited and MRX Medical post 27 March 2023.
On behalf of the board
Melissa Sturgess, Chief Executive Officer
24 October 2023
The directors present their consolidated interim financial
statements of the Group for the period from 1 February 2023 to 31
July 2023.
Directors of the company
The directors who have served during the year and up to the date
of approval were as follows:
Charles Morgan
Melissa Sturgess
Inbar Pomeranchik
John Treacy
Stuart Piccaver
Clive Page (Appointed 27 March 2023)
Jeremy Sturgess-Smith (Appointed 27 March 2023)
Results
The consolidated statement of comprehensive income is set out on
page 6 and shows the loss for six-month period to 31 July 2023. The
directors consider the loss for the period to be line with
expectations. The directors do not recommend the payment of a
dividend.
This report was approved by the Board and signed on its
behalf.
Melissa Sturgess, Chief Executive Officer
24 October 2023
Group Company Group Company
6 months 6 months Year ended 6 months
to 31 July to 31 July 31 January to 31 July
2023 2023 2023 2022
Unaudited Unaudited Audited Unaudited
Note GBP GBP GBP
Administrative expenses (844,456) (325,875) (880,758) (330,899)
Depreciation (101,025) - (172,284) -
Interest payable (44,412) (44,412) (247,983) -
( 989,893 ( 370,287
Loss from operations ) ) (1,301,025) (330,899)
Taxation - - - -
Other Comprehensive
Income 1
R&D repayment - - 161,385 -
Total loss for ( 989,893 ( 370,287
the period ) ) (1,139,640) (330,899)
============ ============ ============ ============
Earnings per share
Basic and diluted
earnings per share
(pence) 2 (0.08p) (0.03p) (0.13p) (0.08p)
There was no other comprehensive income in the period.
The notes on page 11 form part of these consolidated interim
consolidated financial statements.
Group Company Group Company
6 months 6 months Year ended 6 months
to 31 July to 31 July 31 January to 31 July
2023 2023 2023 2022
Unaudited Unaudited Audited Unaudited
GBP GBP GBP GBP
Non-Current assets
Tangible assets 1,664,405 - 1,762,468 -
Intangible assets 5,827,228 - 4,470,376 -
Investments in subsidiaries - 9,470,421 - 3,173,861
------------ ------------ ------------ ------------
7,491,633 9,470,421 6,232,844 3,173,861
Current assets
Cash and cash equivalents 11,519 - 18,837 -
Assets under construction 47,080 - 47,080 -
Trade and other
receivables 221,783 130,909 210,144 35,404
------------ ------------ ------------ ------------
280,382 130,909 276,061 35,404
Current liabilities
Trade and other
payables 2,136,162 1,893,372 1,586,484 2,559,399
Convertible loan - - 2,924,812 -
notes
------------ ------------ ------------ ------------
2,136,162 1,893,372 4,511,296 2,559,399
Non-Current liabilities
Convertible loan
notes - - - 587,860
Deferred tax liability 793,000 - 793,000 -
Total assets less
liabilities 4,842,853 7,707,958 1,204,609 62,007
============ ============ ============ ============
Capital and reserves
Share capital 5,756,056 5,756,056 2,341,110 1,641,110
Share premium 5,328,996 5,328,996 3,468,944 931,444
Equity to be issued 100,000 100,000 - -
Share option reserve 51,357 51,357 32,499 24,502
Retained earnings (6,393,556) (3,528,451) (4,637,944) (2,535,049)
Total equity and
liabilities 4,842,853 7,707,958 1,204,609 62,007
============ ============ ============ ============
The consolidated interim financial statements were approved and
authorised for issue by the Board and were signed on its behalf
by:
Melissa Sturgess
Chief Executive Officer
24 October 2023
The notes on page 11 form part of these consolidated interim
financial statements.
GROUP Share
Share Share Option Retained
Capital Premium Reserve Earnings Total
GBP GBP GBP GBP GBP
As at 1 February 2023 2,341,110 3,468,944 32,499 (5,403,663) 438,890
Total comprehensive loss ( 989, ( 989,
for the period - - - 893) 893)
--------------------------- ---------- ---------- --------- ------------ ----------
Proceeds from share issue 3,414,947 1,860,052 - - 5,274,998
Issue of share options - - 18,858 - 18,858
Equity to be issued - - 100,000 - 100,000
(6,393,556
Balance at 31 July 2023 5,756,056 5,328,996 151,357 ) 4,842,853
========== ========== ========= ============ ==========
COMPANY Share
Share Share Option Retained
Capital Premium Reserve Earnings Total
GBP GBP GBP GBP GBP
As at 1 February 2023 2,341,110 3,468,944 32,499 (3,158,164) 2,684,389
Total comprehensive loss ( 370,287 ( 370,287
for the period - - - ) )
--------------------------- ---------- ---------- --------- ------------ ----------
Proceeds from share issue 3,414,946 1,860,052 - - 5,274,998
Issue of share options - - 18,858 - 18,858
Equity to be issued - - 100,000 100,000
(3,528,451
Balance at 31 July 2023 5,756,056 5,328,996 151,357 ) 7,707,958
========== ========== ========= ============ ==========
GROUP Share
Share Share Option Retained
Capital Premium Reserve Earnings Total
GBP GBP GBP GBP GBP
(1,006,138
As at 1 February 2022 1,597,031 876,347 18,788 (3,498,304) )
Total comprehensive loss
for the year - - - (1,139,640) (1,139,640)
--------------------------- ---------- ---------- --------- ------------ ------------
Proceeds from share issue 744,079 2,592,597 - - 3,336,676
Issue of share options - - 13,711 - 13,711
Balance at 31 January
2023 2,341,110 3,468,944 32,499 (4,637,944) 1,204,609
========== ========== ========= ============ ============
COMPANY Share
Share Share Option Retained Tot
Capital Premium Reserve Earnings al
GBP GBP GBP GBP GBP
(1,006,138
As at 1 February 2022 1,597,031 876,347 18,788 (3,498,304) )
Total comprehensive loss
for the period - - - (330,899) (330,899)
--------------------------- ---------- --------- --------- ------------ -----------
Proceeds from share issue 44,079 55,097 - - 99,176
Issue of share options - - 5,714 - 5,714
Balance at 31 July 2022 1,641,110 931,444 24,502 (2,535,049) 62,007
========== ========= ========= ============ ===========
The following describes the nature and purpose of each reserve
within owners' equity:
Reserve Description and purpose
Share capital This represents the nominal value of shares
issued.
Share premium Amount subscribed for share capital in excess
of nominal value.
Retained earnings Cumulative net gains and losses recognised
in the statement of comprehensive income.
The notes on page 11 form part of these consolidated interim
financial statements.
ACCOUNTING POLICIES
General information
Ananda Developments Plc's consolidated interim financial
statements are presented in British Pound Sterling (GBP) which is
the functional currency of the parent company. These consolidated
interim financial statements were approved for issue by the Board
of Directors on 24 October 2023.
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 2023 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 consolidated interim financial statements are for the
six-month period ended 31 July 2023. They have been prepared
following the recognition and measurement principles of FRS 102.
They do not include all the information required for full annual
financial statements and should be read in conjunction with the
audited consolidated financial statements for the period ended 31
January 2023.
These unaudited consolidated interim financial statements have
been prepared on a going concern basis which the Directors believe
to be appropriate.
These unaudited consolidated interim financial statements have
been prepared in accordance with the accounting policies adopted in
the consolidated financial statements for the period ended 31
January 2023.
The principle accounting policies applied in the preparation of
these Interim financial statements are the same as those applied in
preparation of the group's annual financial statements.
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
MRX Trial funding confirmation
Ananda announced on 15 August 2023 that the Chief Scientist
Office ("CSO"), which is part of the Scottish Government Health
Directorate and is responsible for funding research in NHS Scotland
(NHS) is providing the non-dilutive funding for the previously
announced endometriosis randomised controlled trial ("RCT") using
Ananda's MRX1 sublingual cannabidiol oil. The CSO is providing
GBP300,000 to conduct the trial using Ananda's patent pending MRX1
formulation and matching placebo.
The endometriosis RCT will be conducted by Dr Lucy H R Whitaker
(BSc (Hons) MB ChB MSc MD MRCOG), NES CSO Clinical lecturer in
Obstetrics and Gynaecology at The University of Edinburgh. Dr
Whitaker is supported by Professor Andrew W Horne (PhD, FRCOG, FRCP
Edin, FRCSEd, FRSE), Professor of Gynaecology and Reproductive
Sciences at The University of Edinburgh. Prof Horne is also
Co-director of EXPPECT Edinburgh, Specialty Advisor to Scotland's
Chief Medical Officer for Obstetrics and Gynaecology,
President-elect of the World Endometriosis Society & Co-Editor
in chief of peer-reviewed journal Reproduction and Fertility. The
100 endometriosis RCT participants will take Ananda's patent
pending MRX1 cannabidiol oil or matching placebo.
Raise via subscription for Convertible Loan Notes
Ananda announced on 6 September 2023 that it had issued 600,000
of GBP1 each denomination unsecured, interest-bearing convertible
loan notes (the "CLNs").
The issue consists of a total cash investment of GBP300,000
raised from two existing shareholders in the Company and debt
capitalisation of GBP300,000 owed to Charles Morgan, Chairman of
Ananda, pursuant to existing loan agreements (the "Loan
Agreements"). Following the debt capitalisation, the outstanding
unsecured debt owed by Ananda pursuit to the Loan Agreements is
GBP709,000. Charles Morgan has agreed not to call the loans until
after 31 January 2025.
The funding will be used for general working capital purposes
and to pursue further clinical trials into inflammatory pain
conditions.
The key terms of the CLNs are:
-- Interest rate of 15 per cent. per annum, which will accrue for the term of the CLNs
-- The conversion price is the lower of a 20% discount to the
price at which shares are issued in the next capital raising of
GBP1,000,0000 or more or 0.4 pence, with a minimum conversion price
of 0.2 pence
-- Conversion of all CLNs will occur automatically upon the
earlier of 30 November 2025, the listing of the Company on a
different exchange or change of control.
DJT - Programme on hold
Following the completion of DJT's 2023 medical cannabis
cultivation trials which have proven that the low capital, low
operating cost cultivation model delivers premium quality medical
cannabis flower and after compiling a large database of detailed
standard operating procedures and protocols, the next step towards
producing medical cannabis flower for sale in the UK is to
construct a GMP (Good Manufacturing Practice) manufacturing
facility. Ananda does not currently see sufficient demand for
cannabis flower in the UK to justify the required capital
expenditure so headcount at the Lincolnshire facility has been
reduced. Ananda will continue to monitor market demand for cannabis
flower before, subject to funding, progressing construction and
licencing of a GMP facility. Ananda sees potential for the DJT
facility to be used to supply cannabinoid APIs (Active
Pharmaceutical Ingredients) for its own MRX medicines.
The genetics programme has delivered third generation seeds with
at least 87.5 per cent. homogeneity. DJT has created and documented
the proprietary breeding protocols. DJT intends to use these in
partnership with a university genetics department to obtain access
to third party grant funding to progress the programme to the sixth
generation. Following which, it would commence field trials with
the resulting plants. The Company will begin applying for
government-backed grant funding opportunities as soon as the
relevant annual grant calls are published.
Collectively, the impact of these decisions at DJT Plants has
been a reduction of approximately GBP60,000 per month of operating
expenses for the group.
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 +44 (0)7463 686 497
ir@anandadevelopments.com
Chief Executive Officer
Melissa Sturgess
Finance Director
Jeremy Sturgess-Smith
SP ANGEL CORPORATE FINANCE LLP +44 (0)20 3470 0470
Corporate Finance
Richard Morrison
Harry Davies-Ball
Corporate Broking
Abigail Wayne
Rob Rees
About Ananda Developments
Ananda is an AQSE-listed company whose ambition is to be a
leading provider of cannabinoid-based medicines for the treatment
of complex, chronic inflammatory pain conditions.
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 do
main.
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END
NEXMIBJTMTBTBAJ
(END) Dow Jones Newswires
October 24, 2023 09:20 ET (13:20 GMT)
Ananda Developments (AQSE:ANA)
過去 株価チャート
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Ananda Developments (AQSE:ANA)
過去 株価チャート
から 12 2023 まで 12 2024
