Sativa’s earlier business model was aimed to take advantage of well-placed opportunities within the dynamic regulatory environment of the Medicinal Cannabis sector in North America. The Company invested in two Canadian companies; Rapid Dose Therapeutics, and Veritas Pharma Inc. These companies have enhanced Sativa’s market position by aiding valuable market research, particularly in the area of seed selection and dosing efficacy.
Following regulatory changes, Sativa has adapted its business strategy to incorporate the UK and European markets. The Company is capitalising on “Seed to Consumer” strategy, focusing on the smart-sourcing of the raw material, advanced extraction, manufacture, testing, distribution and research & development of medicinal cannabis and Cannabinoid products.
Two UK businesses, George Botanicals and PhytoVista Laboratories, are already fully operational, since being set up in June and July 2018, respectively. Other important future revenue streams, including the retail business Goodbody & Blunt, are at various points of development from early stage to commercial launch. The Company is excited to open the first of three pilot stores in Bath, after which Sativa intends roll-out a national franchise.
Sativa GmbH, the 60% owned German subsidiary, is applying for an import and wholesale licence to distribute the Group’s CBD and Medicinal Cannabis products within the German market. Alongside the operating businesses, we have established The Sativa Foundation, which will award research grants to academic and other institutions to further research into the efficacy of Medicinal Cannabis. The first grant was awarded to Kings College London in April 2019.
MANFACTURING, RETAIL SALES & DISTRIBUTION
Goodbody Botanicals (formerly George Botanicals) is Sativa Group’s primary retail subsidiary. The brand, which sells CBD products online and on the high street, aims to become the UK’s number one retail CBD brand by capturing significant market share with major pharmacy, wellness and grocery retail chains.
Operating on the ethos of ‘CBD you can trust’, the market leading CBD products are manufactured using the highest quality cannabis oils obtained from reputable European and North American suppliers. All Goodbody Botanicals products undergo thorough CBD testing to ensure they are THC free, and bear the ‘PhytoVista tested’ Kitemark and QR providing traceability to the manufacturing batch. Taking into account extensive market feedback, packaging has been upgraded and the product range has been expanded – Goodbody Botanicals CBD products make a compelling value proposition for major high street retailers and their shoppers.
With the growing demand for CBD products across the UK, Goodbody Botanicals has already delivered strong organic growth and is well positioned to capture market share as the industry continues to grow. Goodbody Botanicals also has a partnership agreement with the UK’s leading sales, marketing and logistics support company, SHS Sales & Marketing Limited, which is the grocery and pharmacy industry’s leading provider and has a market penetration to over 90% of UK households. The combination of Goodbody Botanicals and SHS Distribution deliver a significant value proposition to UK pharmacies and high street retailers.
Goodbody Botanicals is shaping the future of CBD products through innovation and stringent quality control.
STORES AND ONLINE
Goodbody Wellness is Sativa Group’s CBD high street retail store offering and is the UK’s first prestige CBD wellness centre brand.
The stores, supported by online sales, provide a premium consumer experience, where different forms of high-quality CBD wellness products are available and visitors can interact with knowledgeable staff members in a comfortable environment. Education is an intrinsic aspect of the unique Goodbody Wellness model, as the centres strive to elevate CBD by providing customers with quality CBD products and in-depth information.
So far, Goodbody Wellness centres are open in Bath, Cirencester and Bristol. There is a franchise roll-out plan in place with the aim of opening 50 strategically located stores across the UK in 2-3 years so that Sativa Group manufactured CBD products can be delivered to as many high street shoppers as possible. Goodbody Wellness is a member of the British Franchise Association and has also constructed a training centre with a showcase store where potential franchisees can gain a complete understanding of the ‘traceable, tested and balanced’ ethos. All stores will have the same interior, as well as a standardised sales, stock, finance and logistical software, to ensure there is a high-level of consistency across the entire Goodbody Wellness brand.
Goodbody Wellness has already set the bar high for the CBD high street retail industry.
Tessellate Collective is Sativa Group’s bespoke direct sales channel and is a member of the Direct Sellers Association. This custom-built social marketing platform, which was developed to bridge the gap between the UK’s CBD market and the network marketing industry, takes Sativa Group’s CBD products to consumers who prefer to buy in this way.
Direct selling is a significant revenue runway in the UK, and one that CBD and wellness products lend themselves well to; it is a £2.6bn industry of which 64% already relates to Wellness & Cosmetics sales. It is also a channel that thrives on educational awareness and anecdotal reviews – if a buyer trusts the opinion of the seller, repeat purchasing is more likely to occur. Tessellate Collective has over 500 well established direct sellers acting as Advocates for the brand who have access to an easy-to-use and financially rewarding commission plan. These Advocates market Sativa Group’s innovative CBD products to their individual loyal customer following.
Tessellate Collective has rapid growth trajectory and with the appointment of a seasoned direct selling executive as Managing Director of the corporate team, who has invested in systems and marketing, the vision is for Tessellate Collective to become the CBD market leader within the direct selling channel.
PhytoVista Laboratories is Sativa Group’s independent analytical hemp and CBD testing facility. PhytoVista provides support to retailers, distributors and manufacturers by expertly testing the cannabinoid level of the hemp and CBD products they are supplying, as well as testing for impurities such as heavy metals and other harmful solvents.
Since being founded in 2017, PhytoVista has extensively developed its chemical testing methods and appointed expert staff in order to establish itself as a trusted and auditable laboratory that services a wide range of industries. The laboratory operates to GLP (Good Laboratory Practice) and ISO 17025 standards, with the aim of being ISO accredited by early 2020. PhytoVista has published CBD industry guidelines that protect consumers and support the development of a higher quality CBD marketplace
PhytoVista understands and monitors regulations in the food and beverage, cosmetics and vaping industries, in order to best advise customers who are looking to test their products and enter the UK CBD market. Goodbody Botanicals, Goodbody Wellness Products that have been accurately tested receive the ‘PhytoVista tested’ Kitemark, signalling that they are THC free and match what they claim to be on the packaging. PhytoVista is setting the standard for quality within the CBD industry.
The UK’s premier cannabis testing facility for CBD and hemp based products.
Henry Lees-Buckley – Chief Executive Officer of Sativa Group PLC, is a seasoned corporate executive, with extensive experience of leading companies in the public markets. Henry was previously CEO of Uni-Select [TSX:UNS], a Canadian TSX quoted company, with operations in the UK, Canada and the USA. Prior to that, he was a senior global executive and officer in the USA and Canada for W.W. Grainger, a US$15 billion Fortune 500 company. Henry is currently a non-Executive Director of NASDAQ-quoted BMC (Building Materials Corp) [NASDAQ:BMCH] which has sales of US$3.8 billion and a market capitalisation of US$1.6 billion. Henry holds an MBA from Queens University, Kingston, Ontario and has held numerous executive level positions both in North America and also the United Kingdom
Founder and Deputy Chairman
Geremy Thomas, is a serial entrepreneur with a successful track record in the telecommunication, e-learning and consumer finance industries. Geremy co-founded The Carphone Group Plc in the late 1980’s and grew the business to exceed 10% market share before selling to Cable & Wireless for £16m. This was followed by the creation and listing of PNC Telecom Plc, a telecoms business that at its peak was valued at over £200m. In 2001 Geremy co-founded TMTI Ltd. TMTI is a highly profitable technical support business which works with the major brands in enhancing the customer experience. George Banco ltd, a consumer Finance business started by Thomas in 2013, was recently sold to Non Standard Finance Plc for £53m. Other business interests include Carbon Managers ltd an environmental services consultancy company.
Joseph is a qualified Chartered Accountant with significant management consulting experience. Before joining Sativa, Joseph was a Director of Consulting at Kantar Consulting, part of WPP plc (“WPP”) which advises Retail, Sales and Shopper clients on enhancing their commercial capability and the commercial competency of their staff. Prior to this, Joseph was Chief Financial Officer and a senior board member at WPP’s Kantar Futures, which advises its clients on enhancing profit through change and shaping strategy. Here, Joseph was accountable for financial performance, managing a global finance team. From 2012 – 2015 Joseph was Global Commercial Director of WPP’s Kantar subsidiary Taylor Nelson Sofres, a $1.8 billion turnover marketing agency.
Before joining WPP, Joseph was an Audit Senior at Mazars LLP, where he qualified as an Accountant with the Institute of Chartered Accountants in England and Wales (ICAEW), being made a Fellow in 2018. He gained a Geophysics BSc (Hons) 2:1 from Southampton University.
As at the date of this announcement, Joseph has been granted 3,350,000 share options in the Company at 1.5p
Angus is an adviser and capital markets professional with nearly 25 years’ experience in global banking with specific expertise in strategic and equity advisory, M&A and ECM. He has held, inter alia, managing director and management roles covering advisory, equity advisory and ECM at a number of organisations, including head of Mid-Market Advisory and Broking at Credit Suisse and head of UK ECM Dresdner Kleinwort. He has a long track record of advising companies and high profile individuals in the UK, USA and Europe.
He is currently a Senior Advisor at Zeus Capital, the independent investment bank, and is also Chairman of North Berwick SA, a business that consolidates portfolios of company-owned life insurance, and of the advisory board of Luxon Payments Ltd, a company using block chain distributed ledger technology to create a global electronic wallet.
Prior to his career in finance Angus was an Army Officer. Angus has a BA (Hons) in Politics and International Relations from the University of Reading.
Mark Blower, non-Executive Director, is an experienced finance professional, having spent the last 20 years actively overseeing the financial performance of over 70 UK SME’s, with a particular focus on raising debt and private equity. He began his career in 1996 at the Investment Banking division of a large UK bank, before joining NM Rothschild in 2000. He then ran a highly successful leveraged debt team for another UK lending institution for five years before starting his Private Equity career in 2010. During his career to-date he has held a number of board positions, across a variety of sectors.
Jonathan joins as non-Executive Chairman. Jonathan is an experienced, City-based corporate financier, who began his City career after graduating from Cambridge University with a M.A. in Economics. He was Chairman of Ideagen plc on its admission to the AIM market in July 2012 until April 2018 and remains a non-Executive Director. Following eight years in Citibank London’s corporate banking division, providing debt finance for growth and acquisition purposes, he moved to Citicorp’s London investment bank (CIBL) where, as a Director in the Corporate Finance Department, he worked on both UK and cross-border transactions.
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