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4 June 2024
Voyager Life plc
("Voyager" or the "Company")
Trading Update
Voyager, the health and wellness group formulating, manufacturing and supplying high-quality Cannabidiol (CBD), hemp seed oil and hemp-related products, provides the following update on its trading and financial performance.
Update on recent consolidation opportunities
On 8 April 2024, Voyager announced that it had terminated its proposed merger with Northern Leaf plc ("Northern Leaf"). The Company's board of directors ("Board") took this decision when it became apparent that Northern Leaf's financial requirements were more urgent than expected and, although the fundraising undertaken alongside the proposed merger was well received, it had become clear that it was unlikely to complete in time for Northern Leaf to meet its obligations.
Alongside the termination, Voyager's share price fell by approximately 60 per cent. perhaps illustrating the challenges facing smaller companies in current markets, a series of trades worth some
Despite this challenge, the Board quickly identified a new merger partner - a European company that would be transformative on the scale of Voyager's operations as well as opening up several new markets. Over the past six weeks, the two companies developed a strategic plan for their combination and the management teams agreed a heads of terms document in principle. Disappointingly, the European company's largest external shareholder, a financial investor, at the eleventh hour determined that the business should follow a different strategic direction and that company has now confirmed to Voyager that this new merger will not proceed.
Funding requirements
For the second time in two months, a transaction that would have provided Voyager and its shareholders with a business of far greater size has, in spite of the Company's best efforts, been impeded. The consequence of this is that Voyager's financial position is now considerably constrained as the Company had deferred its funding plans pending conclusion of this more recent merger plan. Voyager will require refinancing in the near term and the Board will commence discussions with shareholders and prospective investors immediately. In addition to the potential of issuing new equity, the Board is also undertaking a review of its existing business.
There is no guarantee that these current discussions will result in new funding being secured or that the terms of any such agreement will be favourable to the Company and its shareholders. In the event that further funding cannot be secured, the Company may need to consider alternative options.
Trading update
During the period since terminating its proposed merger with Northern Leaf, Voyager has been successful in pitching for and winning a substantial new customer for its manufacturing division, VoyagerCann. Arrangements with this customer are still being finalised but outline terms are a preliminary order in June 2024 for at least six product lines with an initial order value of up to
Voyager sells over 70 of its own product lines in store, online and through third party outlets and carries over 400 SKUs in its three retail stores. VoyagerCann continues to grow its reputation and, in addition to manufacturing Voyager, Ascend Skincare and, more recently, Amphora branded products, the company also supplies customers who in turn supply some of the
Following its success with its petcare range, Voyager contracted with Unified Retail to manage sales of its pet range and other products on Amazon. In the two months since the Company began working with Unified Retail, its Amazon profile has already improved with a greater range of products now available for sale through its Prime channel.
The Company has also been exploring a reinvigoration of its e-commerce strategy and, over the past two months, has been working with a specialist IT consultant. The plan developed is for Voyager's primary website to be re-written in Shopify and accompanied by a revised SEO, social media and digital marketing strategy. Shopify would provide more functionality and can also be integrated into the Company's stores and used at external events (such as trade fairs) The IT consultant is experienced in marketing CBD products online, including using sponsored advertisements, and the Board forecasts that sales, both B2C and B2B, are likely to benefit immediately from these plans. Initial set up is likely to cost in the range of
With the low-cost acquisition of Amphora Health Limited earlier in the year, Voyager now has 23 products validated on the FSA's novel foods list, which the Board considers will be a key part of its e-commerce strategy. Just as significantly, the acquisition enables Voyager to enter the potentially lucrative non-disposable vape market and the VoyagerCann team have completed preparations to commence manufacturing the Amphora formulations. The Board believes that VoyagerCann will be able to produce a vape range that is significantly differentiated from the competition but at a very competitive price.
As previously announced, in line with others on the high street, Voyager's retail stores had a difficult second half to the 2023 calendar year but the Company reduced staffing and revised its product mix to address this challenge. In recent months, the beginnings of a sales recovery across the stores have been observed.
Nick Tulloch, Chief Executive Officer and Founder of Voyager, said: "It is almost three years since we listed on Aquis. In that time, although not yet reaching the level of self-sustaining returns, we have achieved all of our business objectives and, in particular, have established ourselves at the forefront of contract manufacturing in the CBD industry. The quality and size of our customer base speaks for itself and the breadth of our product range, both in our own brands and other formulations, continues to provide increasing flexibility and opportunity for our customer base.
"As I have said before, we have for some time believed that consolidation in the cannabis sector was likely and that our listing on Aquis would be a particular benefit for acquiring privately held companies in the sector. This thesis has been borne out by our ability to source and develop acquisitions and mergers with far larger companies, the completion of any of which would have given our shareholders access to far greater scale of operations and, we hoped, greater liquidity in our shares and improved market standing.
"We may have been unlucky as external interventions have impeded conclusion of these transactions and, in the meantime, our own requirement for funding continues. Against that, few CBD or cannabis companies can boast the range of products, customers and growth opportunities that Voyager has. Through contract manufacturing and petcare, we have built a strong position in two substantial markets and we expect to continue to make progress in 2024. With one of the largest CBD product ranges in the
This announcement contains inside information for the purposes of the
ENDS
Enquiries:
Voyager Life plc
Nick Tulloch, CEO
|
Tel: +44 (0) 1738 317 693
|
Cairn Financial Advisers LLP (AQSE Corporate Adviser)
Ludovico Lazzaretti/Liam Murray
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Tel: +44 (0) 20 7213 0880 |
Stanford Capital Partners LLP (Broker)
Patrick Claridge/Bob Pountney
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Tel: +44 (0) 203 3650 3650/51
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SI Capital Limited (Broker)
Nick Emerson/Nick Briers |
Tel: +44 (0) 1483 413500 |
Notes to Editors:
About Voyager
Voyager was founded in 2020 and is based in
The Company's philosophy of plant-based health and wellness is embodied in its mission statement and hashtag of "Choose you". With an experienced team and a product line created in line with the
Through Voyager's bespoke skincare product creation and development division, VoyagerCann, the Company also offers a full turnkey service to other CBD, skincare and cosmetics brands assisting them in developing and launching new products with a manufacturing and distribution facility in
Website and social media links:
Voyager:
https://www.instagram.com/voyagercbd/
https://twitter.com/voyagercbd
https://www.linkedin.com/company/voyager-cbd/
https://www.facebook.com/voyagercbd/
voyagerCann:
https://www.instagram.com/voyagercann/
https://twitter.com/voyagercann/
https://www.linkedin.com/company/voyagercann/
https://www.facebook.com/voyagercann/
Amphora:
https://www.infusedamphora.com/
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