Ananda Developments - Interims for the six months ended 31 July 2024

Directors Report

The directors present their consolidated interim financial statements of the Group for the period from 1 February 2023 to 31 July 2024.

Directors of the company

The directors who have served during the period and up to the date of approval were as follows:

Charles Morgan

Melissa Sturgess

John Treacy

Stuart Piccaver

Clive Page

Jeremy Sturgess-Smith

Results

The consolidated statement of comprehensive income is set out below and shows the loss for six-month period to 31 July 2024. The directors consider the loss for the period to be line with expectations. The directors do not recommend the payment of a dividend.

This report was approved by the Board and signed on its behalf.

Melissa Sturgess, Chief Executive Officer

30 October 2024

Consolidated Interim Statement of Comprehensive Income

There was no other comprehensive income in the period.

The notes form part of these consolidated interim financial statements.

Consolidated Interim Statement of Financial Position

The consolidated interim financial statements were approved and authorised for issue by the Board and were signed on its behalf by:

Melissa Sturgess

Chief Executive Officer

[ [[30 October 2024

The notes form part of these consolidated interim financial statements.

Consolidated Interim Statement of Changes in Equity

The following describes the nature and purpose of each reserve within owners' equity:

 The notes form part of these consolidated interim financial statements.

ACCOUNTING POLICIES

General information

Ananda Developments Plc's consolidated interim financial statements are presented in British Pound Sterling (GBP) which is the functional currency of the parent company. These consolidated interim financial statements were approved for issue by the Board of Directors on 30 October 2024.

The financial information set out in these interim financial statements does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The Company's statutory financial statements for the year ended 31 January 2024 have been filed with the Registrar of Companies. The auditor's report on those financial statements was unqualified and did not contain a statement under Section 498(2) of the Companies Act 2006.

These interim results have not been audited nor have they been reviewed by the Company's auditors under ISRE 2410 of the Auditing Practices Board.

Basis of preparation

These consolidated interim financial statements are for the six-month period ended 31 July 2024. They have been prepared following the recognition and measurement principles of FRS 102. They do not include all the information required for full annual financial statements and should be read in conjunction with the audited consolidated financial statements for the period ended 31 January 2024.

These unaudited consolidated interim financial statements have been prepared on a going concern basis which the Directors believe to be appropriate.

These unaudited consolidated interim financial statements have been prepared in accordance with the accounting policies adopted in the consolidated financial statements for the period ended 31 January 2024.

The principal accounting policies applied in the preparation of these Interim financial statements are the same as those applied in preparation of the group's annual financial statements.

1.         Foreign currency transactions

Transactions in foreign currencies are translated to GBP at the exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated to GBP at the exchange rate on that date. Foreign exchange differences arising on translation are recognised in the statement of comprehensive income.

2.         Earnings per share

The calculation of earnings per share is based on the loss attributable to ordinary shareholders divided by the average number of shares in issue during the period.

SUBSEQUENT EVENTS

Raise via subscription and placing

Successfully raised gross proceeds of £2,225,857 from new and existing shareholders by way of a placing, subscription (together the "Fundraise") and WRAP Retail Offer of new Ordinary Shares at a price of 0.3 pence per share (the "Issue Price").

Highlights:

·      Ananda successfully raised gross proceeds of £2,145,861 including a £2,040,800 subscription by Charles Morgan, the Company's Chairman

·      In addition to the Fundraise, the Company offered additional shares to existing shareholders through a retail offering on the Winterflood Retail Access Platform

·      Charles Morgan and Melissa Sturgess (CEO) also agreed to capitalise all unsecured debt owed to them, with additional share authorities being granted at a general meeting on 8 October 2024. The capitalisation of this debt significantly strengthened the Company's balance sheet

·      Proceeds of this Fundraise and WRAP Retail Offer will be used to manufacture MRX1 for CIPN and Endometriosis Phase II studies, execute a pharmacokinetic study for MRX1 in Australia and general
working capital

·      The Company has also issued options to key management personnel

Ananda cannabinoid medicines to be used in NHS epilepsy trials

On 21 October 2024, Ananda announced that two of its patent pending cannabinoid medicines, MRX2 and MRX2T, will be used in two NIHR- & NHS-funded Phase IIIa epilepsy clinical trials involving up to 500 patients in total. The trials will be run by investigators at University College London and Great Ormond Street Hospital.

The objective of the trials is to test the safety and efficacy of Ananda's specific cannabidiol (CBD) and CBD plus THC formulations for two treatment-resistant epilepsy groups in children and adults. If the results are favourable, they will pave the way for a submission of these medicines to the MHRA and other regulatory bodies for regulatory approval.

The trials are being funded by a partnership between NHS England and National Institute for Health and Care Research (NIHR) and will be co-led by Professor Finbar O'Callaghan and Professor Helen Cross of University College London (UCL) and Great Ormond Street Hospital for Children NHS Foundation Trust (GOSH).

Highlights:

·      MRX formulations will be used as the investigational medicinal products (IMPs) in two NIHR/NHS funded Phase III randomised controlled trials (RCTs) investigating the treatment of complex epilepsies

·      Trial 1: MRX2 (CBD), MRX2T (CBD + THC) versus placebo in patients with refractory (drug-resistant) early onset epilepsies.

·      Trial 2:  MRX2 (CBD), MRX2T (CBD + THC) versus placebo in patients of normal cognitive ability with refractory genetic generalised epilepsies.

·      Existing evidence suggests cannabis-based medicinal products are promising treatments for difficult to treat epilepsies, with one CBD-only medicine already licenced to treat three rare conditions associated with drug-resistant epilepsy

·      Should the trials deliver successful results, MRX intends to progress further regulatory and commercial development activities of these medicines via a licensing option that has been granted by UCL over any IP arising from these trials

In combination, the trials will involve up to 500 patients from across the UK and together, will be the largest investigational trials conducted to date for cannabinoids as a treatment for refractory epilepsy

Graduation to APEX segment of the AQUIS Stock Exchange

On 5th August, trading in the Company's shares  was moved to the senior Apex segment of the Aquis Stock Exchange ("AQSE") Growth Market.

The Apex segment is reserved for larger, more established businesses with a proven growth strategy and which meet higher standards of corporate governance.

Phase 1 Pharmacokinetic Study of MRX1

On 9^th October 2024,  the Company announced that Ananda's Australian subsidiary had signed a contract with Southern Star Research Pty Ltd('SSR'), a leading Australian Contract Research Organisation, to carry out a Phase 1 clinical trial investigating the pharmacokinetic ("PK") profile, tolerability and safety of the Company's lead investigative asset,MRX1.

Highlights:

·      Contract signed for Phase 1PK study

·      The clinical trial will investigate the PK profile, tolerability and safety of MRX1 in healthy
volunteers

·      The data generated will inform future clinical trials in patients and form an integral part of
any future regulatory applications, including with the MHRA in the United Kingdom or FDA
in the United States

·      Collected data will form part of Ananda's MRX1 patent estate and wider intellectual property
portfolio

·      Significant financial advantages of running the study in Australia, including an R&D Tax
Incentive of up to 43.5% of eligible research and development costs

Addition to Scientific Advisory Board

Lastly, Professor Marie Fallon has agreed to join the Company's Scientific Advisory Board ("SAB") to provide the Company with expert technical advice and guidance. The SAB is Chaired by Professor Clive Page, a non-executive director of Ananda Developments plc and it held its first meeting in Edinburgh in May 2024.

Prof. Fallon is also the lead investigator for Ananda's Phase II study investigating the pain-relieving effects of MRX1 in patients with Chemotherapy Induced Peripheral Neuropathy.

Professor Marie Fallon

Marie Fallon (MD FRCP(Glas) FRCP(E) MRCGP DCH DRCOG). Marie is a Professor of Palliative Medicine at the

University of Edinburgh and is an Honorary Consultant in Palliative Medicine based at the Edinburgh Cancer

Centre. Marie has played a significant role in research, leading both national and international research studies around pain and cachexia in cancer patients. Marie has led the development of international palliative care guidelines such as ESMO for cancer pain and ASCO for cachexia.

Marie has been Joint Editor of four editions of the Oxford Textbook of Palliative Medicine which is the reference textbook in the specialty. Prof. Fallon has edited several other books and sits on numerous grant committees, as well as being an editorial board member of the BMJ Supportive and Palliative Care journal. Finally, of note, much of Marie's recent and current research relates to Low- and Middle-Income Countries (LMICs), where she is seeking to address the issue of poor opioid availability in LMICs.

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To stay abreast of the latest developments at Ananda, we encourage you to follow our social media channels which are:  

·              Investor Hub: investors.anandadevelopments.com

·              Instagram: https://instagram.com/anandadevelopments?igshid=YmMyMTA2M2Y=   

·              LinkedIn: https://www.linkedin.com/company/anadevelopments/   

·              Twitter: https://twitter.com/AnandaPlc

·              Investor Meet Company: https://www.investormeetcompany.com/ananda-developments-plc/register-investor

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The Directors of the Company accept responsibility for the contents of this announcement.  

About Ananda Developments  

Ananda is an AQSE-listed life sciences company focused on the research and clinical development of CBD-based therapies for a range of complex inflammatory pain conditions.

For more information, please visit: https://anandadevelopments.com

https://investors.anandadevelopments.com/link/7PlxkP