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AFRI - Afriag Global News Story

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Last Trade - 22/09/20

Sector
Industrials
Size
Micro Cap
Market Cap £2.06m
Enterprise Value £825k
Revenue £n/a
Position in Universe 1757th / 1809

AfriAg Global Plc: Unaudited Results for the six months to 30 June 2020

Tue 21st July, 2020 8:40am
For immediate release   21 July 2020 

AfriAg Global PLC

(“AfriAg Global”, or the “Company”)

Unaudited Interim Results for the six months to 30 June 2020

AfriAg Global PLC (AQSE: AFRI), today announces its interim results for the
6-month period ended 30 June 2020.

Like many public companies around the world, the COVID-19 pandemic has
unfortunately slowed down the Company’s efforts with respect to completing
the Apollon UK transaction (see below), however we are totally focused on
working through the delays and proceeding with this very exciting transaction.
We are working diligently with our advisers and regulators towards putting
this deal to shareholders for their careful consideration and approval.

Medical Cannabis Investments:

The Company currently owns 4.64 million shares (representing 2.68%) of the
share capital of Apollon Formularies Ltd (“Apollon UK”).

The Company is currently working with Apollon UK to satisfy all regulatory
requirements for the proposed acquisition of the entire issued share capital
of Apollon UK (the “Acquisition”) as previously announced. In due course,
subject to making an offer to the shareholders of Apollon UK and obtaining the
necessary approvals, the Company intends to send an explanatory circular and
notice of general meeting to its shareholders seeking approval of the
Acquisition. It is intended that the Company will acquire all the issued and
outstanding shares from the shareholders of Apollon UK pursuant to a right of
first refusal in consideration for the issue and allotment to those
shareholders of new ordinary shares in the capital of the Company at a price
of 10 pence per new ordinary share.

Apollon UK is entitled to 95% of the net profit of Apollon Formularies
Jamaica, Limited (“Apollon Jamaica”). Subject to approval from the
Cannabis Licensing Authority in Jamaica, Apollon UK has the right to acquire a
49% interest in the issued share capital of Apollon Jamaica.

Apollon Jamaica holds the following licenses: 
1. Licence to cultivate cannabis for the sole purposes of undertaking
research, including clinical research as approved by the Ministry of Health;
2. License to process and manufacture any cannabis-based products that have
been approved by the Ministry of Health for medical, therapeutic and
scientific purposes (Processing Licence 170209113513) at designated premises
of Apollon Jamaica; and
3. License to provide therapeutic services using cannabis (Retail (Therapeutic
Services) Licence 170209153635).
Financial Results:

The operating loss for the period was £60,000 (6 months ended 30 June 2019:
loss £88,000). Loss before tax was £62,000 (6 months ended 30 June 2019:
loss £88,000). There was a weighted loss per share of 0.19p (30 June 2019:
loss per share 0.47p).

The unaudited interim results to 30 June 2020 have not been reviewed by the
Company’s auditor.

Outlook

We have a very unique ability, being one of the few companies listed in London
and indeed Europe, to actually undertake investments in the fast-growing legal
medical cannabis sector. Although the global cannabis market has come off its
highs of last year, the medical research side will become more significant as
time goes by.

Having recently completed our initial investment in Apollon UK, we are
actively pursuing to further increase our stake in this key investment further
as discussed above. We fully appreciate that time is of the essence, and your
board, its lawyers and indeed the Apollon UK team are working tirelessly to
wrap up this transaction as soon as possible.

The Board would like to take this opportunity to thank our shareholders, staff
and consultants for their continued support and I look forward to reporting
further significant progress over the next period and beyond.

The directors of the Company accept responsibility for the contents of this
announcement.

David Lenigas

Executive Chairman

20 July 2020.

For further information, please contact:

AfriAg Global plc:
                                                       
+44 (0) 78 7958 4153

David Lenigas

Corporate Adviser and Broker:

Peterhouse Capital
Limited                                       
+44 (0) 20 7469 0930

Guy Miller / Allie Feuerlein

Condensed Statement of Comprehensive Income (unaudited)
for the 6 months ended 30 June 2020

                                                                                                                                      
                                                                                                6 months to  6 months to   Year ended 
                                                                                                    30 June      30 June  31 December 
                                                                                                       2020         2019         2019 
                                                                                                  Unaudited    Unaudited      Audited 
                                                                                          Note        £’000        £’000        £’000 
                                                                                                                                      
                                                                                                                                      
 Revenue                                                                                                  -            -            - 
 Cost of sales                                                                                            -            -            - 
 Gross Profit                                                                                             -            -            - 
                                                                                                                                      
 Administration expenses                                                                               (60)         (88)        (206) 
                                                                                                                                      
 Operating (loss)                                                                                      (60)         (88)        (206) 
                                                                                                                                      
 Loans advanced to subsidiaries written-off                                                               -            -      (1,953) 
 Investment income                                                                                      (2)            -         (23) 
                                                                                                                                      
 (Loss) before tax                                                                                     (62)         (88)      (2,182) 
 Tax                                                                                                      -            -            - 
                                                                                                                                      
 Retained (loss) for the period                                                                        (62)         (88)      (2,182) 
                                                                                                                                      
 Other comprehensive income                                                                                                           
 Other comprehensive income for the period net of taxation                                                -            -            - 
 Total comprehensive income                                                                               -            -            - 
 Total comprehensive (loss) for the period attributable to equity holders of the parent                (62)         (88)      (2,182) 
                                                                                                                                      
 (Loss) per share (pence)                                                                    2                                        
 Basic                                                                                               (0.19)       (0.47)       (8.58) 
 Diluted                                                                                             (0.19)       (0.47)       (8.58) 

All of the revenues and loss above derived from continuing operations.

Condensed Statement of Financial Position (unaudited)
At 30 June 2020

                                 30 June 2020  30 June 2019  31 December 2019 
                                    Unaudited     Unaudited           Audited 
                                        £’000         £’000             £’000 
                                                                              
 Non-current assets                                                           
 Trade and other receivables                -         1,836                 - 
 Total non-current assets                   -         1,836                 - 
                                                                              
 Current assets                                                               
 Trade and other receivables               18           628                16 
 Available for sale assets              1,160         1,030             1,167 
 Cash and cash equivalents                 76           472                98 
 Total current assets                   1,254         2,130             1,281 
                                                                              
                                                                              
 Total assets                           1,254         3,966             1,281 
                                                                              
 Current liabilities                                                          
 Trade and other payables               (561)       (1,246)             (525) 
 Total current liabilities              (561)       (1,246)             (525) 
                                                                              
                                                                              
 Net current assets                       693           767               756 
                                                                              
 Net assets                               693         2,720               756 
                                                                              
 Equity                                                                       
 Share capital                          3,171         3,011             3,171 
 Share premium account                  8,534         8,566             8,535 
 Share based payment reserve              128           146               128 
 Retained earnings                   (11,140)       (9,003)          (11,078) 
                                                                              
 Total equity                             693         2,720               756 

Condensed Statement of Changes in Equity (unaudited)
for the 6 months ended 30 June 2020

                                                                    Share capital  Share premium  Share based payment reserve  Retained earnings    Total   
                                                                             £’000          £’000                        £’000              £’000     £’000 
 At 31 December 2018                                                         1,761          8,630                          279            (9,047)     1,623 
                                                                                                                                                            
 (Loss) for the period                                                           -              -                            -            (2,182)   (2,182) 
 Total Comprehensive Income                                                      -              -                            -            (2,182)   (2,182) 
                                                                                                                                                            
 Shares issued                                                               1,410              -                            -                  -     1,410 
 Share issue costs                                                               -           (95)                            -                  -      (95) 
 Transfer with equity                                                            -              -                        (151)                151         - 
 Total contributions by and distributions to owners of the Company           1,410           (95)                        (151)                151     1,315 
 At 31 December 2019                                                         3,171          8,535                          128           (11,078)       756 
                                                                                                                                                            
 (Loss) for the period                                                           -              -                            -               (62)      (62) 
 Total Comprehensive Income                                                      -              -                            -               (62)      (62) 
                                                                                                                                                            
 Shares issue costs                                                              -            (1)                            -                  -       (1) 
 Total contributions by and distributions to owners of the Company               -            (1)                            -                  -       (1) 
 At 30 June 2020                                                             3,171          8,534                          128           (11,140)       693 

Condensed Statement of Cash Flows (unaudited)
for the 6 months ended 30 June 2020

                                                         6 months to   6 months to        Year ended 
                                                        30 June 2020  30 June 2019  31 December 2019 
                                                           Unaudited     Unaudited           Audited 
                                                               £’000         £’000             £’000 
                                                                                                     
 Cash flows from operations                                                                          
 Operating (loss)                                               (60)          (88)             (206) 
 (Increase)/decrease in trade & other receivables                (2)         (494)                 1 
 Increase/(decrease) in trade & other payables                    36           788                67 
 Net cash used in operating activities                          (26)           206             (138) 
                                                                                                     
 Investing activities                                                                                
 Receipts on sale of AFS investments                               5             -                 - 
 Payments on purchase of AFS investment                            -       (1,000)           (1,160) 
 Net cash from investing activities                                5       (1,000)           (1,160) 
                                                                                                     
 Financing activities                                                                                
 Issue of share capital                                            -         1,250             1,410 
 Issue costs                                                     (1)          (65)              (95) 
 Net cash from financing activities                              (1)         1,185             1,315 
                                                                                                     
 Net increase/(decrease) in cash and cash equivalents           (22)           391                17 
 Cash and cash equivalents at the beginning of period             98            81                81 
 Cash and cash equivalents at the end of period                   76           472                98 

Notes to the Condensed Interim Financial Information (unaudited)

1.General information

The condensed interim financial information for the period ended 30 June 2020
has not been audited or reviewed in accordance with the International Standard
on Review Engagements 2410 issued by the Auditing Practices Board. The figures
were prepared using applicable accounting policies and practices consistent
with those adopted in the statutory accounts for the period ended 31 December
2019. The figures for the period ended 31 December 2019 have been extracted
from these accounts, which have not been required to be delivered to the Isle
of Man Registrar of Companies and do however contained an unqualified audit
report.

The condensed interim financial information contained in this document does
not constitute statutory accounts. In the opinion of the directors the
financial information for this period fairly presents the financial position,
result of operations and cash flows for this period.

The Condensed Interim Financial Information was approved by the Board of
Directors on 20 July 2020.

Statement of compliance

These condensed interim financial statements have been prepared in accordance
with International Financial Reporting Standards (IFRS) as adopted by the
European Union with the exception of International Accounting Standard
(‘IAS’) 34 – Interim Financial Reporting. Accordingly, the interim
financial statements do not include all of the information or disclosures
required in the annual financial statements and should be read in conjunction
with the Company’s 2019 annual financial statements.

2.(Loss) per share

The calculation of the (loss) per share is based on the (loss) attributable to
ordinary shareholders divided by the weighted average number of shares in
issue during the period.

                                                         6 months to  6 months to         Year 
                                                             30 June      30 June  31 December 
                                                                2020         2019         2019 
                                                           Unaudited    Unaudited      Audited 
                                                               £’000        £’000        £’000 
 (Loss) attributable to equity holders of the Group             (62)         (88)      (2,182) 
                                                                                               
 Weighted average number of ordinary shares (millions)         31.71        18.36        25.41 
                                                                                               
 (Loss) per share – basic                                     (0.19)       (0.47)      (8.658) 
 (Loss) per share – diluted                                   (0.19)       (0.47)       (8.58) 

3.Events after the end of the reporting period

There are no events after the end of the reporting date to disclose.

4.A copy of this interim financial statement is available on the Company’s
website: www.afriagglobal.com.



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