Investment Policy

The Company focuses on the acquisition of or significant investment into Medical Cannabis sector. Canna Capital will also identify investment opportunities in companies that provide ancillary products and services within these sectors such as supply chain, research, and testing companies. The Company plans to add value by applying capital and expertise to the business operations and strategic plans of investee companies.
Canna Capital has a strict policy of non-investment in recreational Cannabis use. All relevant legislation is constantly monitored and adhered to and all acquisitions are subject to strict legal review to ensure all operations of the business and the product in which they derive their profits are legal in all operating jurisdictions. In addition, every investment is subject to review of the Company’s Advisory Board.
The Company will seek to achieve its investment objectives and strategy by taking an active approach in investments made in line with the following Investing Policy, which is as follows:
Sector focus
The Company will consider each potential investment on its merits, irrespective of where that potential Investee Company is incorporated. Canna Capital’s primary areas of investment may include:
• Licensed medical grade Cannabis production and processing
• Medical Cannabis research including patents
• Medical Cannabis supply chain
Technologies and other intellectual properties relating to the production, processing, and application of Medical Cannabis
The experience and operational skills of the Board are intended to act as an accelerator to start-ups and early-stage companies that have technological know-how but lack the skills, contacts, and capital to maximise their profit opportunity.
Investments
In most cases the proposed investments to be made by the Company will be in companies rather than projects which could be in both public and private companies. Most investments will be intended to be held over the medium term, although where short term investment exit opportunities exist, the Company may take advantage of them.
Types of investment and control of investments
The Company will seek to provide capital investment as either equity, debt, cash or a hybrid combination of these options. The Company may seek to appoint a director to the board of an Investee Company.
The Company will either subscribe for new shares in an Investee Company or acquire existing shares in an Investee Company. The Board may consider issuing additional Ordinary Shares as acquisition consideration to sellers of shares in Investee Companies or as subscription consideration to an Investee Company. In such an instance, the Board would expect to manage the dilutive effect of any such issue of additional Ordinary Shares carefully and it is unlikely that the Board would consider such a course of action in circumstances where any exiting seller(s) might obtain any degree of control of the Company.
Investment size
It is envisaged that the Company’s investments will have an enterprise value of between £1,000,000 and £10,000,000, which, if necessary, will be funded through further equity issues and debt to appropriate and prudent levels.
Nature of returns
It is anticipated that returns to Shareholders will be delivered through a combination of an appreciation in the Company’s share price and, at an appropriate time, through the adoption of a progressive dividend policy.
Borrowing
The Company may borrow in order to finance (in whole or in part) the making of an investment.
Cash balances
Pending investment, reinvestment or distribution of cash receipts or repayments of any outstanding indebtedness, cash received by the Company will be retained in cash, or invested in cash equivalents, near-cash instruments, money market instruments and money market funds and cash funds. The Company may also hold derivative or other financial instruments designed for efficient portfolio management or to hedge interest, inflation or currency rate risks. The Company may also lend cash which it holds as part of its cash management policy.
Given the nature of the Investing Policy, the Company does not intend to make regular periodic disclosures or calculations of its net asset value.
Changes to the investment policy
The Company’s investment policy may be amended from time to time by the Board. Changes in the policy will be announced to the market through a regulatory information service and also via the Company’s website.