RE: RNS11 Jul 2018 08:38
Update: Expansion of Investment Strategy to include Medical Cannabis
AfriAg Global PLC, the London listed global food and logistics investment group, provides an update on its intention to seek shareholder approval to expand its investment strategy to include investments in the developing markets for medicinal cannabis derivatives, or related products.
David Lenigas, AfriAg Global’s Chairman commented:
“The legalised global cannabis industry is a fast-growing sector with many international governments now legalising the use of cannabis products for medical use. Since out last announcement on this matter, the Company has engaged experienced UK legal counsel as part of the process of gaining approvals from our regulators to actively engage in this very exciting sector and we now in active discussions with leading global experts in the medical cannabis field to join our advisory board.”
The Company’s expanded investment strategy will include investments in companies, projects or products that are either progressing medicinal cannabis research and development; producing or cultivating medicinal cannabis; or commercialising or marketing medicinal cannabis and its derivatives. AfriAg will look to invest in companies and projects in jurisdictions which have well-developed and reputable laws and regulation for the research and production of medicinal cannabis and in jurisdictions that are signatories to the United Nation’s conventions on narcotics.
The Company is likely to be an active investor within this sector and acquire control of certain target companies although it may also consider acquiring non-controlling shareholdings. The proposed investments to be made by the Company may be in either quoted or unquoted securities and made by direct acquisition of an interest in companies, partnerships or joint ventures, or direct interests in projects and can be at any stage of development. Accordingly, the Company’s equity interest in a proposed investment may range from a minority position to 100 per cent. ownership and a controlling interest. The Directors primary objective is to achieve the best possible value over time for Shareholders, primarily through capital growth.
The Board believes that their collective experience, together with their extensive network of contacts, will assist them in the identification, evaluation and funding of appropriate investment opportunities within the medicinal cannabis space. When necessary, other external professionals will be engaged to assist in the due diligence on prospective targets and their management teams. The Directors will also consider appointing additional directors and /or advisors with relevant experience if the need arises.
There will be no limit on the number of projects into which the Company may invest within this space, and the Company may invest in a number of propositions or in just one investment, which may be deemed to be a reverse takeover pursuant to Rule 58 of the NEX Exc
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