LONDON, UK: Ananda Developments Plc has agreed to acquire MRX Global Ltd and its subsidiary, MRX Medical Ltd. MRX has invented a proprietary method to formulate cannabis medicines, the first of which, MRX1, is to be used in two Phase II Randomised Controlled Trials (RCTs) to investigate the effectiveness of cannabidiol (CBD) in chemotherapy induced peripheral neuropathy (CIPN) and in patients with endometriosis.
MRX’s cannabidiol formulations meet the requirements set out by the National Institute for Health and Care Excellence (NICE)for research into the effectiveness of CBD with no or trace tetrahydrocannabinol (THC). MRX1 and MRX2, MRX’s second formulation, will also be launched as unlicensed CBPM’s (Cannabis Based Products for Medicinal use) in the coming months.
The clinical trials have received combined commitments of £1.55m in external grant funding and will be carried out by leading investigators at the University of Edinburgh.
Ananda also announces that it has raised £326,200 (before expenses) through a subscription (the “Subscription”) of 108,733,327 ordinary shares of 0.2p each in the Company (“Ordinary Shares”; “Subscription Shares”) and is issuing a further 747,264,000 Ordinary Shares pursuant to the conversion of loan notes. Subject to completion of the acquisition, Professor Clive Page and Jeremy Sturgess-Smith are being appointed as Directors of Ananda.
Ananda’s CEO, Melissa Sturgess commented: “UK regulators and prescribers have made it clear that evidence for cannabis-based medicines is required to enable them to be prescribed on the NHS. We believe that the acquisition of MRX gives Ananda the opportunity to provide that evidence. MRX also has the potential to deliver near-term revenues for Ananda, through the sale of MRX’s formulations, which are ready for launch as unlicenced CBPMs. Our ambition, over time, is to manufacture MRX’s oils from flower grown at our own facility in Lincolnshire and we continue work to make that happen.”
Ananda has agreed to acquire 100% of the issued share capital of MRX Global for a consideration of £2,021,520. The consideration will be satisfied by the issue of 673,840,000 new Ordinary Shares (the “Consideration Shares”) to the vendors of MRX Global (the “Vendors”) at a price of 0.3p per share.
The Vendors comprise Charles Morgan, Chairman of Ananda, Melissa Sturgess, Chief Executive of Ananda, Dr Inbar Pomeranchik, a Non-executive Director of Ananda, Jeremy Sturgess-Smith, who is being appointed as a Director of Ananda and is the son of Melissa Sturgess (the “Related Party Vendors”) and Professor Clive Page, who is also being appointed as a Director of Ananda. Both Jeremy and Clive will join the Board only if the Acquisition is approved at the General Meeting.