focusIR May 2024 Investor Webinar: Blue Whale, Kavango, Taseko Mines & CQS Natural Resources. Catch up with the webinar here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
StillCanna has large cultivation and extraction assets and is on the cusp of significant revenue growth: It is one of Europe’s largest CBD companies with 1500 hectares of hemp cultivated in Poland in 2019 with this expected to grow to 3000Ha in 2020. It has two large extraction facilities based on a proprietary closed loop ethanol-based design with combined capacity to produce up to 29 tonnes of CBD isolate pa. Its wholly owned extraction in Poland has recently started production with the group recording its first revenues in the quarter to January 2020, and its JV facility with DragonFly in Romania recently received its final operating permit and awaiting the lifting of the COVID-19 lockdown before resuming commissioning.
It complements Sativa’s leading position in UK distribution and branding and puts the group in a strong position with regards to Novel Food compliance: both companies share a culture of compliance and the resulting vertically integrated entity will be able to provide full traceability of testing and compliance from seed to sale. Both were already engaged in the process of achieving UK and European FSA Novel food compliance prior to the UK March 2021 deadline. We believe success in the UK by Sativa’s Goodbody brands is likely to help generate demand in other jurisdictions, as well as for wholesale and white label CBD supply.
Attractive deal structure for both sets of shareholders: Based on the current share prices, the resulting group will be 65% owned by Sativa shareholders with Sativa not just bringing branding and distribution in the most important EU CBD market, but also a cannabinoid testing laboratory, as well as medicinal and veterinary cannabinoid asset development. For Sativa, StillCanna brings compliant EU cannabinoid supply at scale, as well as balance sheet strength which, combined with potentially significant third-party CBD sales this year, should see the group well through COVID-19 but potentially also be able to trade to self-sufficiency without further equity funding.
StillCanna has raised over C$30m in equity financing, including a C$24m raise in April 2019. In its most recent financials, the three months ended 31 January 2020, it recorded its first quarterly revenues C$0.23m (from Nexus) and an operating loss of C$2.06m. It reported cash and equivalents of C$6.72m, $1.23m in inventories and is debt free apart from C$0.20m of leases. This therefore gives it little more than 9 months of cash runway at that cash burn rate. As such, its financial statement included a statement that there is material uncertainty that casts significant doubt about the Company’s ability to continue as a going concern.
That said, with the Nexus facility now operational and PES expected to start production in the coming months, and with significant capacity in cultivation and extraction, the company looks like it could trade its way to self-sufficiency within the next six months and with its current cash position. This potentially could then provide headroom in funding to support the combinedgroup with Sativa, especially if cost synergies can be achieved through the combination of the two businesses.
A back of the envelope calculation suggests that the 1500 Ha cultivated by StillCanna in 2019 would theoretically hold over 7 tonnes of CBD (using a conservative CBD yield in flower of c3.5%) which could be extracted in six months. With a wholesale value of over €5/g for traceable compliant EU CBD distillate and isolate, this supply could deliver revenues over €35m this year. Additional revenues could be made by StillCanna by toll processing third-party crop using spare capacity in its Nexus facility as well as from the Premium Extraction Services JV with DragonFly who also has considerable hemp flower in stock to process once fully operational
Still canna are tanking! Any clues as to why?
I'm quite excited about the potential takeover.
We will be growing hemp in Romainia and Poland and selling it.
We have what Sativa group has now plus what stillcanna are doing. Hemp is becoming popular, used for biomass and the CBD which is used general sales and Pharma grade. Medical cannabis is in there which is going to take off, as it does what it says on the tin with few side effects. The world is turning away from opiates and I believe CBD and other molecules from the plant will become very popular medicines, among other things. The world will be turning away from plastics and hemp can be used like plastic, , imo dyor
I believe this could do very well over the coming years, and that's why I'm invested and will be building a bigger position should the takeover happen.
So we are being sold out. Hmm price hasnt moved. Usually when there is talk of a buy out the stock rises.
Guess we arent going to be making much from now on.
Does anyone know , what and when , we will hear what is happening?
If it happens is it a plus for SATI shareholders?
Actually, 1.8p
Jokers.
So basically we take a further haircut.
Current £:$ means shares worth 2p if this goes through.
· All options and warrants in Sativa are expected to be exchanged for options and warrants in StillCanna using the same ratio.
· If the transaction were to be carried out based on the exchange ratio referred to above, Sativa shareholders (as at today's date) would hold approximately 65% of all StillCanna shares following completion, including all option and warrant instruments outstanding.
· It is envisaged that the transaction would be achieved through a UK Scheme of Arrangement under Part 26 of the UK Companies Act 2006.
The LOI provides for an exclusivity period, allowing the Company to conduct due diligence on StillCanna. StillCanna will not pursue any alternative transaction to the proposed acquisition of Sativa during the exclusivity period.
Other than in a limited number of circumstances, if StillCanna does not proceed to make an offer to acquire the shares of the Company pursuant to the LOI, StillCanna will be required to pay a break fee to Sativa at the greater of either, £1,000,000, or if StillCanna enters into an Alternative Transaction, 25% of the value paid by StillCanna or for StillCanna's securities or assets (as the case may be) in such alternative transaction. Discussions remain at a very early stage and accordingly there can be no certainty that a firm offer will be made.
· StillCanna wishes to explore a potential transaction where StillCanna will acquire the entire issued share capital of Sativa in consideration for which StillCanna will issue StillCanna Shares to the Sativa shareholders on the basis of 0.33651 StillCanna Shares for each Sativa share in issue.
Any one thing stillcanna is a good move for sat?
SATI showing zeros across the board on LSE today. Concerning.
15 mins ago.....................
CBD Oil Market is expected to witness growth at a rate of 31.90% for the forecast period of 2020 to 2027. CBD Oil Market Report analyses the growth, which is currently being owed to the focus of unconventional application of hemp extract and CBD oil for medical purposes.15 mins ago
What will they dream up next? Snake oil hand cleanser !!
Soap is quite good .....
https://twitter.com/UKCANNAMEDIA/status/1238850380949307392?s=19
You’re right there! I’m only doing it to annoy you...
I've been taking sativa's cbd oil for joint pain and it works a treat it's not your cheap stuff like u get from holand&Barrett with God knows what is in it. The sooner we get more regulations for the cbd industry in the UK the better for sativa. Why post about snake oil when you obviously have never tried cbd or no nothing about
Are you invested here?
If you are, why are you so critical of the product?
If not, haven't you got something better to do?
I’m surprised the snake oil salesmen haven’t said this is a cure for Coronavirus!
Mms sweating soon. No sells yet
Great watching this rise!
Some great news coming in for this
Brilliant to see the recent increase in information provided to shareholders.