Greencare Capital - 2021 Interim Results

30 July 2021

Greencare Capital PLC

("Greencare" or the "Company")

Unaudited Interim Results for the six months ended 30 April 2021

Greencare (AQSE: GRE), the investment company focused on investing in medicinal cannabis, CBD and related wellness areas, today announces its unaudited interim results for the six months ended 30 April 2021.

Chief Executive's Strategic and Financial Review

Greencare is an investment company quoted on the Access Segment of the Aquis Stock Exchange ("AQSE") Growth Market, the successor to NEX Exchange Growth Market. The Company was incorporated on 1 October 2019 and its shares were admitted to trading on 30 December 2019.

The Company's investment strategy is to focus on investments in the cannabis sectors within countries whose jurisdictions have well-developed and reputable laws and regulations for its production, research and distribution, together with the CBD and hemp sectors. The law and regulation governing the cannabis sector are, however, continually evolving and the Company's investments, where applicable, will only focus on businesses and organisations with activities that are entirely lawful under the jurisdiction in which they operate and are either already lawful or are capable of being lawful in the UK. The Directors therefore believe that such activities should not amount to any offences under the POCA 2002 in the UK.

The Company will invest directly or indirectly in public or private companies, in supply and distribution chains, or other business associated with the sector. Investments may take the form of debt or equity and it is expected that such investments will ordinarily seek capital growth in the medium term in preference to income.

The Company plans to identify investment opportunities in the cannabis sector predominantly in Europe. The Directors believe that there are numerous investment opportunities within the wellness industry and the fast-growing production, distribution and other associated businesses that will be of interest to the Company. The Company will not invest in the recreational cannabis sector, or in entities or activities supported by it, nor any other related activities which would be deemed illegal under UK legislation.

During the period, the Company has reviewed a number of investment opportunities. On 1 April 2021, it announced its first investment of £100,000 in Clearly Supplements Limited ("Clearly"), as part of a £500,000 fund raising by Clearly. The investment was by way of a convertible loan note ("CLN") with a 5 per cent coupon and a 12-month term. Under the terms of the conversion, the CLN would convert at the time of a stock market listing by Clearly, at a 30 per cent discount to the then placing price, subject to a maximum price.

Clearly has developed a wide range of products under the Clearly CBD brand. It is also establishing a number of distribution channels which include direct selling and the capability to enter the Asian market, including China, through distributors in Hong Kong. It is also focused on certain other key market segments such as the fitness sector and will, at the same time, be looking to build a retail presence and to operate online. Clearly has also entered into a supply agreement with Hempflax International, Europe's largest independent hemp grower and processor and is planning to seek its own stock market listing in the short to medium term.

On 23 April 2021, the Company made its second investment, of £100,000, in Voyager Life Limited ("Voyager"), as part of a £671,000 equity fund raising by Voyager.

Voyager, a health and wellness business focused on CBD and hemp seed oil, has developed a range of products under the Voyager and Voyager Life brands, including oils, gummies, bath and skincare products and is already generating revenues. It is currently developing a number of distribution channels which include direct sales, drop shipping, specialist retailers and online marketplaces. The CBD sector is poised for rapid growth, with the UK being one of the world's largest and fastest growing markets for CBD products. Voyager is looking to capitalise on the forecast growth and ongoing regulatory changes in the UK CBD market, which is forecast to be worth more than £1bn by 2025.

On 30 June 2021, Voyager announced that it had completed its own IPO and admission to trading on The AQSE Growth Market, with Greencare holding approximately 2.8% of the enlarged issued share capital of Voyager.

Since publication of the Company's 2020 Final Results  in April of this year, Fabio Caretta and Nicholas Lee have both stepped down from the board to focus on their other business interests.  Both departed the Company with the Board's thanks. I was appointed to the board on 12 May 2021 as CEO, and the Company is currently assessing the potential for additional appointees to the board.

Outlook

The Directors strongly believe that the market sectors which the Company is focused upon investing in are going through a very exciting, transitional period, with the Company well placed to deploy funds to take advantage of the forecast growth and changing regulatory landscape. The recent investments in Clearly and Voyager demonstrate the compelling opportunities available for investment. The Board is currently assessing an ever-increasing pipeline of other potential transactions and very much looks forward to updating the market further in the near future.

Richard Tonthat

Chief Executive Officer

30 July 2021

Enquiries: