20 June
2019
AfriAg Global
Plc
("AfriAg Global"
or the "Company")
AfriAg commits to second phase of
investment in to Apollon Formularies Ltd
AfriAg Global PLC, a company whose shares are admitted to
trading on London’s NEX Exchange (Ticker: AFRI) advises that
following shareholder approvals of the resolutions put to the
Company’s shareholders yesterday, that it will be now proceeding to
close the conditional placing of £700,000 as announced on
24 May 2019 and now plans to move
towards its stated intention of increasing its investment in to
Apollon Formularies Ltd (“AFL” or “Investee”) to
2.34%.
As previously announced, this second stage of investment in to
AFL is a key step towards offering a full share-based offer for all
outstanding shares in Apollon Formularies Ltd. Further investments
in Apollon Formularies Ltd will subject to shareholder and
regulatory approvals.
Also, with respect to the Company’s announcement of 17 June 2019, and for the avoidance of any doubt,
AfriAg advises that:
- AfriAg has and is investing in to Apollon Formularies Ltd. The
relationship between Apollon Formularies Ltd, the UK entity, and
Apollon Formularies Jamaica Limited (“Apollon”) has been outlined
in detail in previous announcements. Accordingly, the
introductory heading should read that AfriAg is an Investee in AFL,
not Apollon.
- The referenced processing and retail licenses issued to Apollon
by the Jamaican Cannabis Licensing Authority (“CLA”) are titled
Processing Licence (Tier 1: < 200 square metres) #170209113513
and Retail (Therapeutic Services) License # 170209153635. Neither
license title includes the phrase “with harvest produced by third
party producers” as appeared in the second bullet point. Such
phrase should have appeared separately and was included in order to
reference the intent of Apollon to perform its first processing,
and its first retail sale of medical cannabis Therapeutic Services,
using the harvest of crop produced by licensed third parties while
Apollon completes the next steps required for it to obtain approval
of a Tier 3 cultivation license.
- Apollon’s procurement of crop harvested by licensed third
parties is strictly for processing of products to be used with
research & development and/or the provision of retail medical
cannabis Therapeutic Services. Crop is not being procured for
direct retail sale (or resale) purposes, which the clause
““procured for retail purposes” may have suggested. Also, with
regard to such procurement of crop harvested by third parties,
Apollon is serving as the “Downstream Buyer” in the transactions to
occur with a third party “Cultivator” and the “Authority” [CLA] as
such terms are defined and used in the CLA’s Tripartite Agreement.
Apollon is not presently engaging in Tripartite Agreement
transaction as a “Cultivator.”
- As explained above and otherwise in the Company’s announcement
of 17 June 2019, Apollon has a conditional Cultivator’s License
(Tier 1) (Up to 1 acre) that has been issued by the CLA and is the
process of seeking a Tier 3 (> 5 acres) cultivation license.
While Apollon is in the process of pursuing approval for a Tier 3
license, it is supplementing its processing and research &
development needs that are not met by the harvests resulting from
its Tier 1 cultivation efforts using crop procured by third parties
per Tripartite Agreement transactions. Once a Tier 3 license is
approved for Apollon, it is Apollon (not third party producers)
that will be the Cultivator for such land approved for cultivation
under the Tier 3 license. Accordingly, the phrase “by third party
producers, as set out in” should not have been included in the last
bullet point so as to avoid suggesting that third party producers
are involved with the Tier 3 Cultivator’s license.
About Apollon
Apollon is a Federally Licensed vertically integrated medical
cannabis company operating in Jamaica. Its Retail (Therapeutic) Medical
Cannabis Dispensary will be located at Doc’s Place wellness center
at 42 One Love Drive in Negril, Jamaica, which is owned and operated by Doc’s
Place International, Inc., an entity that Apollon Formularies Ltd
has the right to acquire. Apollon offers a full suite of medical
cannabis pharmaceutical products developed in its cultivation,
processing and manufacturing facilities. Doc’s Place offers an
all-inclusive, wellness resort that through its affiliation with
Apollon is able to accommodate medical cannabis care and treatment
involving Licensed Medical Doctors and other healthcare
professionals. Apollon also has a contractual option to acquire 660
acres of prime agricultural land in Jamaica that it intends to use for its Tier-3
legal medical cannabis cultivation licence (greater than 5
acres).
Notice Regarding Forward-Looking
Statements
This announcement includes "forward-looking statements"
involving the Company, the other entities referenced in this
announcement, and the respective subsidiaries, affiliates and
associates of the Company and such other entities (collective, the
“Involved Entities”), which include all statements other than
statements of historical facts, including, without limitation,
those regarding the financial position, business strategy, plans
and objectives of management for future operations, and any
statements preceded by, followed by or that include forward-looking
terminology such as the words "targets", "believes", "estimates",
"expects", "aims", "intends", "will", "can", "may", "anticipates",
"would", "should", "could" or similar expressions or the negative
thereof. Such forward-looking statements involve known and unknown
risks, uncertainties and other important factors beyond the control
of the Involved Entities that could cause the actual results,
performance or achievements of the Involved Entities to be
materially different from future results, performance or
achievements expressed or implied by such forward-looking
statements. Such forward-looking statements are based on numerous
assumptions regarding the present and future business strategies of
the Involved Entities and the environment in which the Involved
Entities will operate in the future. These forward-looking
statements speak only as of the date of this announcement. The
Company, on behalf of itself and each of the Involved Entities,
expressly disclaims any obligation or undertaking to disseminate
any updates or revisions to any forward-looking statements
contained in this announcement to reflect any change in
expectations of any Involved Entities with regard thereto or any
change in events, conditions or circumstances on which any such
statements are based. As a result of these factors, readers are
cautioned not to rely on any forward-looking statement.
The directors of the Company accept responsibility for the
contents of this announcement.
-ENDS-
For further information please
contact:
AfriAg Global
Plc:
David Lenigas (Executive Chairman)
|
+44 (0)20 7440 0640 |
Peterhouse Capital
Limited
Guy Miller
Fungai Ndoro
|
+44 (0)20 7469 0930 |
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