(Alliance News) - Ananda Developments PLC announced on Thursday that it plans to acquire MRX Global Limited and its subsidiary MRX Medical Limited.

The London-based medical cannabis company said it agreed to acquire 100% of the issued share capital of MRX Global for a consideration of GBP2 million.

This consideration will be satisfied by the issue of GBP6.7 billion new shares to the vendors of MRX Global at a price of 0.3 pence per share.

Ananda also announced that it has raised GBP3.3 million through a subscription of GBP1.1 billion shares of 0.3p each in the company and is issuing a further 7.5 million shares via the conversion of loan notes.

Subject to completion of the acquisition, Clive Page and Jeremy Sturgess-Smith will be appointed as directors of Ananda.

MRX has invented a proprietary method to formulate cannabis medicine, which are to be used in trials to investigate the effectiveness of cannabidiol in chemotherapy and in patients with endometriosis.

Ananda said the clinical trials have received combined commitments of GBP1.5 million in external grant funding and will be carried out by leading investigators at the University of Edinburgh.

If the trials are successful, it has been requested that MRX be made available for commercial supply in the NHS, Ananda said.

Ananda's Chief Executive Officer, 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 unlicensed cannabis-based products for medicinal use."

Shares in Ananda were quoted at 0.35 pence each on AQSE in London on Thursday afternoon, having last traded at 0.3 pence earlier in the afternoon.

By Sabrina Penty; Alliance News reporter

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