Love Hemp Group PLC Announces Corporate Update, Fundraise & Result of GM
Love Hemp Group PLC (OTCQB: WRHLF) has announced a corporate update highlighting plans to raise up to £2 million at 1p per share. The company is on track for a move to the Main Market of the London Stock Exchange by Q1. Operational initiatives are aimed at enhancing shareholder value and reducing costs, including moving to a new facility for consolidated operations. Key appointments to the board have been made to strengthen governance, and strategic alliances with suppliers are being formed. A 'Shares for Debt' program is expected to improve the company's balance sheet.
- Plan to raise up to £2 million at 1p per share for working capital.
- On track to move to the Main Market of the London Stock Exchange in Q1.
- Strengthening board governance with new appointments.
- Initiatives to consolidate operations and reduce costs.
- Strategic alliances formed with key suppliers.
- Improved balance sheet through 'Shares for Debt' program.
- None.
LONDON, UK / ACCESSWIRE / February 4, 2022 / Love Hemp Group PLC (AQSE:LIFE)(OTCQB:WRHLF), the brand-led consumer goods company focused on CBD health and wellness solutions, is pleased to provide the following corporate update.
Highlights
- The Company has opened a financing to raise up to £2.0 million at 1p per share
- Move to Main Market of the London Stock Exchange plc ("LSE") on track for Q1
- Strengthening the Board and the Company's corporate governance
- Operational initiatives are underway enhancing shareholder value and reducing operating costs substantially
- Move to new facility will result in the consolidation of all business activities
- Strategic alliances formed with key suppliers
- Improved balance sheet through a ‘Shares for Debt' programme
Fundraise
The Company is pleased to announce that it intends to raise up to £2.0 million by way of a placing and conditional subscriptions of new Ordinary Shares at a price of 1p per share.
The funds raised will be used for general working capital purposes, as well as streamlining the business through the initiatives described below.
Operational Updates
Since the Company's year end of 30 June 2021, Love Hemp has embarked on several internal initiatives at both the Group and Limited (operational) level. These include;
- Moving to the new facilities, which will result in the consolidation of all business activities and will reduce operating cost substantiality
- Combining of roles and the building of efficiencies through proactive modifications and change management initiatives; and
- Andrew Male and Tony Calamita electing to accept their renumeration in shares until 30 June 2022, along with others in the Company, or until such time as the Board determines appropriate.
This will result in significant cost savings overall and greatly reduce the Company's cash outlay.
Board & Management
Love Hemp has appointed Garry Cook and Graham Mullis as Non-Executive Directors from 14 February 2022. These appointments provide another level of governance for the Company and enables the formalisation of Board independence and committees.
Internally, the Company has also formalised the group CFO role with James Mahony. James will be taking on a more active role with regards to reporting and governance within the operations.
Supplier Alliances
The Company has also decided to offer some of its key suppliers an opportunity to participate as shareholders by offering them shares for the supply of products in the Company, thereby building a longer and stronger relationship.
An example of this is Newell Sciences Limited ("Newell Sciences"), the supplier of our premium raw CBD ingredients from the US and a partner in Love Hemp's Novel Food application with the Food Standards Agency. Newell Sciences have been supplying premium CBD extracts to Love Hemp for two years now and the Company is looking forward to a long-standing relationship.
Shares for Debt
The Company is improving its balance sheet by offering a ‘Shares for Debt' programme. It should be noted that the participants of the ‘Shares for Debt' programme have all continued to be engaged with the Company and are forward looking relationships.
Result of General Meeting
The Company is also pleased to announce that at the General Meeting held today, all resolutions were duly passed.
Tony Calamita, CEO of Love Hemp Group, commented, "Love Hemp has initiated transformational changes to create ongoing efficiencies, increase organic sales growth across all channels and build greater shareholder value. Combined with recent Board appointments, which takes us to another level, we are now well positioned for our move to the Main Market which is anticipated to be before the end of the first quarter. The funds raised through the latest financing round will be used to support this process as well as our streamlining initiatives."
-ENDS-
For further information please visit: www.lovehempgroup.com or contact:
Love Hemp Group Andrew Male | +44 (0) 7926 397 675 |
Financial Advisor Rupert Fane H&P Advisory Limited | +44 (0) 20 7907 8500 |
AQSE Corporate Adviser Mark Anwyl Peterhouse Capital Limited | +44 (0) 20 7469 0930 |
Financial PR Tim Blythe/Madeleine Gordon-Foxwell Blytheweigh | +44 (0) 207 138 3204 |
About Love Hemp Group
Love Hemp Group is a brand-led consumer goods company focussed on health and wellness solutions for consumer use cases including sleep, pain, anxiety, stress and recovery. The Company is a pioneer in the UK-based premium high-quality CBD market, with over 40 products including oils, edibles, sprays, cosmetics and topicals. The Company's range of products are sold online across 70 websites and in over 2,000 stores including some of the biggest retailers in the UK, such as Holland & Barrett, Boots and Ocado. Listed on the Aquis Stock Exchange (AQSE: LIFE) the Company recently changed its name to Love Hemp Group plc, from World High Life, to better reflect its focus on supporting the "best in class" CBD brand as it embarks on a wider expansion of its core business and offering.
Market Abuse Regulation (MAR) Disclosure
The information contained within this announcement is deemed by the Company to constitute inside information. Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
SOURCE: Love Hemp Group PLC
View source version on accesswire.com:
https://www.accesswire.com/687339/Love-Hemp-Group-PLC-Announces-Corporate-Update-Fundraise-Result-of-GM
FAQ
What is the purpose of the fundraise announced by Love Hemp Group (WRHLF)?
When is Love Hemp Group (WRHLF) expected to move to the Main Market of the London Stock Exchange?
What initiatives is Love Hemp Group (WRHLF) taking to reduce operating costs?
Who has been appointed to the board of Love Hemp Group (WRHLF)?
What is the 'Shares for Debt' program introduced by Love Hemp Group (WRHLF)?
