NEX Rule 75
The Board intend to seek investments in companies, projects or products that are:
- progressing legal Cannabis research and development;
- seeking to produce or cultivate Cannabis in any jurisdiction in which it is legal to do so;
- producing or supplying legal products derived from or related to Cannabis (including, but not limited to, hemp and cannabidiol products); and/or
- commercialising or marketing Cannabis and its derivatives in any form in which it is legal to do so.
The Company will seek investments in companies and projects in jurisdictions which have well developed and reputable laws and regulations for the research and production of Cannabis and in jurisdictions that are signatories to the United Nation’s conventions on narcotics.
Types of Investments
The Company is likely to be an active investor within these sectors 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.
If the Company takes a controlling stake, the acquisition could trigger a Reverse Takeover under Rule 58 of the NEX Exchange Rules.
The Board intends to acquire one or more investments in quoted or unquoted businesses or companies (in whole or in part) thereby creating a platform for further investments. There is no limit on the number of companies, projects or products that the Company may invest in with the agricultural, medicinal or scientific cannabis sectors. The Company may need to raise additional funds for these purposes and may use both debt and/or equity.
The Board believes that their collective experience, together with their extensive network of contacts and the Investment Advisor, will assist them in the identification, evaluation and funding of appropriate investment opportunities within the Cannabis sector. 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.
The Directors intend to review the investment strategy on an annual basis and, subject to their review and in the absence of unforeseen circumstances, the Directors intend to adhere to the 24 investment strategy. Changes to the investment strategy may be prompted, inter alia, by changes in government policies or economic conditions which alter or introduce additional investment opportunities. It is the intention of the Directors to invest the Company’s cash resources, as far as practicable, in accordance with the investment strategy.
The Directors believe that they, together with the Company’s Senior Investment Adviser, Dr Eli David Schmell, PhD, have sufficient experience and expertise to allow them to identify, appraise and execute attractive investment opportunities in line with the Amended Investment Strategy, which will have the potential to increase Shareholder value.
Shareholders’ attention is drawn to the risk factors set out in Part II of the Company’s Admission Document dated 21 June 2018 and available on this website at the following link: Admission Document.