As the people of the UK and other parts of Europe gear up for a re-opening of travel and leisure, after a lengthy bout of lockdowns, this company is poised to facilitate the measures needed to get back to normal.
For Britons who’ve suffered a lengthy period of economically-crippling lockdowns, it appears the end is finally in sight. Now with the United Kingdom signalling its re-opening, big investment opportunities are right around the corner.
However, before lawmakers are comfortable letting their citizens roam about again, they’re leaning towards continued testing and vaccination rollouts—which require proper infrastructure and planning. We’ve identified a company that’s already secured contracts with the UK government to focus on wellness and be a BIG part in the reopening of the country’s economy.
UK-based wellness company Sativa Wellness Group Inc. (OTC:SCNNF / CSE:SWEL) was already the country’s pre-eminent CBD provider, but now is contracted to deliver COVID-19 testing and vaccination jabs on behalf of Britons wanting to return to normal.
People want to get back to business! Back to travel! Back to life as they knew it!
At the first sign of restrictions lifting, shoppers rushed back to stores.[1]
Now we’re seeing major retailers in the UK up their expectations, including luxury fashion brand Burberry expecting a strong rebound in sales.[2] Meanwhile, European travel stocks also surged after the UK announced its end-to-lockdown plan.[3]
British Prime Minister Boris Johnson has expressed his optimism for lifting all restrictions by the end of April, stating:
“The vaccine gives us immunity from Covid but it must also give us permanent immunity from Covid-related lockdowns and restrictions.”[4]
As of late March, the UK set a record of 873,784 daily vaccinations.[5]
Vaccinations aren’t the only measure being presented to prevent future UK lockdowns, PM Johnson also is urging all adults to test for Covid-19 twice a week.[6]
With an adult population of roughly 51 million[7], hitting that mark would require over one hundred million tests to be processed on a weekly basis—that would be a huge workload.
Which is what put Sativa Wellness Group Inc. (OTC:SCNNF / CSE:SWEL) firmly on the map for us. This is one of the biggest UK wellness opportunities we’ve seen in a very long time.
Back in December, the company was already booking £27,000 (+US$37,000) a day in COVID testing revenues—FROM JUST TWO CLINICS![8]
As Sativa Wellness Group Inc. (OTC:SCNNF / CSE:SWEL) targets operating 30 clinics by the end of April, they’ve already crossed the million pound milestone[9] from their COVID testing clinic business.
Now the clinics will be delivering more than just COVID-19 testing… they’ll also be delivering vaccination jabs as well!
Even if it were just the testing business alone, this would be enough for the stock to keep investor interest.
However, Sativa Wellness Group Inc. (OTC:SCNNF / CSE:SWEL) also has established itself as a top player in the UK for CBD products—in a market that’s projected to more than triple to £1 billion (~US$1.38 billion) by 2025.[10]
The company is currently undertaking a three-year trial on the healing properties of the cannabis plant with the Kings College London, having secured a high-THC growing license in the country for research purposes.[11]
With a full-scale seed-to-sale business that mirrors industry leader Charlotte’s Web in the USA, and state-of-the-art laboratory capabilities to test cannabis on behalf of regulators, Sativa Wellness has a one-two punch combo that’s the envy of wellness plays across the globe.
Let’s now take a deeper dive into why we love Sativa Wellness Group Inc. (OTC:SCNNF / CSE:SWEL) so much.
5 Highlights That Point to a Sativa Wellness Group Break-Out in the VERY Near Future
- Successful Goodbody Clinics Business Model
- Through only two clinics operating in December, Sativa Wellness’ private coronavirus testing and vaccination distribution arm Goodbody Clinics generated +US$37k per day. Tests are priced between £55-£320 (+US$75-US$440). The operation is also looking to
- Bold Expansion Targets by the End of April
- Recent expansion has brought Sativa Wellness’ footprint of Goodbody Clinics to 17 (including 2 mobile units built for large gatherings). The company has stated a target of 30 clinics by the end of April.
- Solid Retail Distribution of Wellness Products
- Through its primary retail subsidiary Goodbody Botanicals, Sativa Wellness is positioned to become the UK’s number one retail CBD brand. The brand already has a partnership agreement with Alliance Healthcare, one of the leading UK distributors and wholesalers of pharmaceutical, medical and healthcare products.
- Multinational Seed-to-Sale Operation
- Seen in many ways like the Charlotte’s Web of the UK, Sativa Wellness Group has established itself as a full-scale seed-to-shelf manufacturer of CBD wellness products, starting from a processing plant inside the EU, and through a manufacturing facility in the UK.
- Leading Specialist CBD and Hemp Laboratory in the UK
- Through its subsidiary Phytovista Laboratories, Sativa Wellness Group has established custom-built, state-of-the-art laboratories to test for compliance and quality cannabis testing providing expert analytical chemical services, and setting industry benchmarks for product quality and safety.
IS SATIVA WELLNESS GROUP INC. (OTC:SCNNF / CSE:SWEL) UNDERVALUED?
Compared to some of itsother UK cannabis industry peers which are valued in the hundreds of millions of pounds, Sativa Wellness Group Inc. (OTC:SCNNF / CSE:SWEL) appears to be quite undervalued—at least to interim CEO and founder Geremy Thomas.
“We are undervalued if you compare us to the newcomers to the LSE who have values of £100m (US$138.6m) whilst we are still lurking below around £20m (US$27.7m). We are a leader in this space; we have been around for quite a while and will be for some time to come. We still have lots to do– but why should they be £100m and me be £18m when I’ve got a proper business with a proper structure, one that is making stuff?”
– Geremy Thomas, Founder and Interim CEO of Sativa Wellness Group
Through its subsidiary, Goodbody Botanicals, Sativa Wellness has a partnership agreement with Alliance Healthcare, one of the leading distributors and wholesalers of pharmaceutical, medical and healthcare products in the UK.
The combination of Goodbody Botanicals and Alliance Healthcare deliver a significant value proposition to UK pharmacies and high street retailers.
However from an overall wellness perspective, Sativa Wellness is positioned for a revenue explosion… from its testing/vaccination site business alone.
At its Goodbody Clinic facilities in the markets of Bath and Bristol, Sativa Wellness Group Inc. (OTC:SCNNF / CSE:SWEL) booked up to £27,000 (~US$37,400) a day in COVID testing revenues in December 2020.
Now the company has 17 clinics ready to go, and a target of 30 opened and operating by the end of April 2021.
If the company manages to scale up their two existing clinics and their December 2020 metrics to 30 clinics by May, that could potentially grow to a level of +US$560,000 per day or US$16.8m per month.
For a company that’s currently trading at a less than US$30 million market cap, the Goodbody Clinic injection into revenues could potentially be larger than the CBD business alone.
UK HEALTH TESTING AND VACCINATIONS
GOODBODY CLINICS
Through its Goodbody Clinic subsidiary, Sativa Wellness Group Inc. (OTC:SCNNF / CSE:SWEL) has put in place valuable infrastructure for British citizens seeking robust and convenient Coronavirus testing in a timely manner—and soon also deliver Covid-19 vaccination jabs from 30 UK locations.[12]
Prices for the private service range from an Antibody test for £55 to an emergency PCR test with rapid results for £320.
So far the business model has already delivered £1 million in revenue for the company, with nothing but growth ahead when the economy reopens and Britons seek to travel and work again.
Currently, they have an ever-increasing number of locations in England and Wales, our Goodbody Clinics offer three types of tests:
- Antibody – Rapid IgB and IgM Antibody test to see if the person has already had Covid-19.
- Antigen – A test to see whether the person is carrying the Covid-19 virus and is infectious to others.
- PCR – For travelling and immigration purposes -RT-PCR test for the presence of Covid-19.
Coronavirus IgG IgM Antibody Test for past infection.
Medical professionals oversee a small blood sample via finger prick. The sample then undergoes analysis that has a >98.3% accuracy rate at detecting COVID-19 coronavirus antibodies.
Coronavirus Antigen Test for current infection.
Medical professionals oversee a self-swab sample being taken. The sample undergoes analysis and results develop during a client’s appointment. Beneficial for workplaces and people who need regular testing.
Coronavirus (RT-) PCR Test for current infection.
Medical professionals will help clients take a self-swab sample from their throat & nasal tissue. The sample undergoes laboratory analysis at Goodbody Clinic’s partner’s London Laboratory that has a >98% sensitivity rate at detecting an active COVID-19 coronavirus infection.
This test qualifies for issuance of a certificate to travel and 100% peace of mind.
INDUSTRY-LEADING EXTRACTION
Through a reverse takeover of Stillcanna in January 2021,[13] Sativa Wellness Group Inc. (OTC:SCNNF / CSE:SWEL) obtained an expert team from diverse backgrounds in traditional CBD cultivation, extraction and large-scale distillation.
PHYTOVISTA LABORATORIES
Founded in 2017 Phytovista Laboratories gives Sativa Wellness’ extensively developed, custom-built, state of the art laboratories, built around stringent methodology that ensures the delivery of accurate results, compliant and of the highest quality to cannabis testing.
Current Operations
- Expert analytical chemical services
- Setting industry benchmarks for product quality and safety
In Development
- ISO Accreditation – process nearing completion
- Develop supplementary testing
- Strategic partnerships: Outsource model
- Expand testing facilities via acquisition or new site
- The acquisition of a new Polish testing laboratory has increased capacity and ability to scale for testing for other European brands
PhytoVista has published CBD industry guidelines that protect consumers and support the development of a higher quality CBD marketplace.
As an organization, it understands and monitors regulations in the food and beverage, cosmetics and vaping industries, in order to best advise customers who are looking to test their products and enter the UK CBD market.
Goodbody Botanicals, Goodbody Wellness Products that have been accurately tested receive the ‘PhytoVista tested’ Kitemark, signaling that they are THC free and match what they claim to be on the packaging.
GOODBODY BOTANICALS – MANUFACTURING, BRANDING & DISTRIBUTION
Providing turnkey solutions for the production, manufacturing, branding and distribution of high-quality CBD products under the Goodbody brand.
Sativa Wellness Group Inc. (OTC:SCNNF / CSE:SWEL) is one of only a few companies in Europe that can provide a fully integrated seed-to-CBD supply chain resulting in highly traceable, quality CBD products that are tested, certified and EU compliant for retail purposes.
They provide support with formulation, branding and marketing strategies to provide all of the tools necessary to supply high-quality market-ready products and establish brands quickly.
State of the art manufacturing & capabilities
- Fully owned high tech bottling line, capability of producing 10,000 units per day.
- High-end laboratory testing Cannabinoids, Mycotoxins, Terpenes and micro-biology.
- Additional select manufacturing partnerships.
- Expanding production capacity & capability.
- Significant pipeline of new product development.
- Availability of low-cost product manufacturing at European site if required.
All CBD raw materials are tested at point of extraction, import and finalised product to ensure consistency and control of Cannabinoids, and are given a batch number and regular testing is conducted.
Sativa Wellness Group Inc. (OTC:SCNNF / CSE:SWEL) is actively engaged with the Novel Foods Process and product variants are currently undergoing stability trials as part of the route to compliance strategy as outlined by the Food Standards Agency (FSA).
PEER GROUP COMPARISONS
It’s tricky to compare Sativa Wellness Group Inc. (OTC:SCNNF / CSE:SWEL) with peers in this space, because they’re not just a cannabis wellness company, but also a provider of COVID-19 testing and vaccination clinics.
However because there are no other companies quite like Sativa Wellness (combining wellness clinics with a vertical CBD operation), it’s wise to start by looking at the BIGGEST entities in the CBD space, and how they’re valued.
| Company | Symbol | Share Price | % Gain in 2021 | Mkt Cap |
| Sativa Wellness | OTC:SCNNF | $0.09 | 79% | $27M |
| Charlotte’s Web Holdings | OTC:CWBHF | $4.76 | 49% | $653.5M |
| HEXO Corp. | NYSE:HEXO | $7.06 | 76.5% | $870M |
| Khiron Life Sciences | OTC:KHRNF | $0.57 | 94.5% | $85.3M |
| Elixinol Global Limited | OTC:ELLXF | $0.16 | 12% | $49.7M |
| Village Farms International | NASDAQ:VFF | $13.72 | 35% | $1.11B |
| Zeotic International | OTC:ZOEIF | $1.25 | 30% | $221M |
| MGC Pharmaceuticals | OTC:MGCLF | $0.07 | 218.5% | $164.6M |
*Latest share price taken from Yahoo! Finance on March 22, 2021
**All prices in USD
“The Sativa Group’s goal is to be recognised as one of the leading life sciences companies, through building the best wellness brands in CBD and testing services, to meet today’s fast evolving consumer expectations. Through full vertical integration of our supply chain, we plan to become one of the premier low-cost producers and high-quality distributors of CBD wellness products in Europe.”
– Geremy Thomas, Interim CEO and Founder of Sativa Wellness Group Inc
EXCEPTIONAL MANAGEMENT TEAM
CEO and Executive Chairman – Geremy Thomas
Geremy is an entrepreneur with a successful track record in the telecommunication,
e-learning and consumer finance industries. After being involved at senior level in The Carphone Group Plc before it was sold, Geremy went on to create and list PNC Telecom Plc. In 2001 Geremy co-founded TMTI Ltd. TMTI Ltd is a profitable technical support business which works with major brands in enhancing the customer experience. Geremy founded George Banco ltd in 2013, a consumer finance business, which was later sold to Non Standard Finance Plc. Geremy’s other business interests include Carbon Managers Ltd, an environmental services consultancy company. More recently, Geremy founded the Sativa Group in 2018 and was its first CEO. After a period as a non-executive and then taking a break from the company, Geremy has returned as the Executive Chairman to lead the board.
Director and Goodbody Botanicals Managing Director – George Thomas
George is a successful entrepreneur who has established an eclectic mix of businesses across an array of industries including Tech, Finance, Environmental and Wellness. George was a founding director and board member of George Banco Ltd, a consumer finance business, which was later sold to Non-Standard Finance Plc. George is the Managing Director of Goodbody Botanicals Ltd, the main operating subsidiary of the Sativa Wellness Group through which he has successfully introduced a range of wellness products and services.
Chief Financial Officer – Joseph Colliver
Joseph is a qualified Chartered Accountant with significant commercial finance experience. Before joining Sativa, Joseph was a Director of Consulting at Kantar Consulting, part of WPP plc (“WPP”) which advises Retail, Sales and Shopper clients on enhancing their commercial capability and the commercial competency of their staff. Prior to this, Joseph was Chief Financial Officer and a senior board member at WPP’s Kantar Futures, which advises its clients on enhancing profit through change and shaping strategy. Here, Joseph was accountable for financial performance, managing a global finance team. From 2012 – 2015 Joseph was Global Commercial Director of WPP’s Kantar subsidiary Taylor Nelson Sofres, a $1.8 billion turnover marketing agency.
SOURCES:
[1] https://www.reuters.com/article/us-britain-retail-springboard/uk-shopper-numbers-edge-higher-as-end-of-restrictions-nears-idUSKBN2BE1VR
[2] https://www.cityindex.co.uk/market-analysis/top-uk-stocks-to-watch-burberry-ups-expectations-as-sales-rebound/
[3] https://www.cnbc.com/2021/02/23/tui-iag-lufthansa-shares-rise-after-uk-johnson-plan-to-end-lockdown.html
[4] https://www.coventrytelegraph.net/news/uk-world-news/restrictions-must-lifted-end-april-19835519
[5] https://www.theguardian.com/world/live/2021/mar/21/coronavirus-live-news-french-icu-patients-at-highest-level-this-year-half-of-all-uk-adults-vaccinated?page=with:block-605766388f08131c2e5299c7
[6] https://www.msn.com/en-gb/news/uknews/boris-to-urge-tests-twice-a-week-for-all-adults-to-prevent-future-uk-lockdowns/ar-BB1eP843
[7] https://www.livepopulation.com/country/united-kingdom.html
[8] https://sativawellnessgroup.com/uncategorized/announcement-launch-of-8-more-covid-testing-facilities/
[9] https://sativawellnessgroup.com/uncategorized/million-pound-testing-milestone/
[10] https://www.theextract.co.uk/business/industry-insights/uk-cbd-industry-2021-projections/
[11] https://businesscann.com/uk-firm-secures-high-thc-growing-licence-2/
[12] https://businesscann.com/sativa-wellness-looking-to-deliver-covid-19-jabs-from-30-uk-locations/
[13] https://sativawellnessgroup.com/uncategorized/sativa-wellness-group-inc-provides-annual-general-update/
DISCLAIMER:
Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor a recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. USA News Group is a wholly-owned subsidiary of Market IQ Media Group, Inc. (“MIQ”). MIQ has been paid a fee for Sativa Wellness advertising and digital media from the company directly. There may be 3rd parties who may have shares of Sativa Wellness and may liquidate their shares which could have a negative effect on the price of the stock. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this publication as the basis for any investment decision. The owner/operator of MIQ own shares of Sativa Wellness which were purchased as a part of a private placement. MIQ will not buy or sell shares of Sativa Wellness for a minimum of 72 hours from the publication date on this website March 7, 2021, but reserve the right to buy and sell, and will buy and sell shares of Sativa Wellness at any time thereafter without any further notice. We also expect further compensation as an ongoing digital media effort to increase visibility for the company, no further notice will be given, but let this disclaimer serve as notice that all material disseminated by MIQ has been approved by the above-mentioned company; this is a paid advertisement, and we own shares of the mentioned company that we will sell, and we also reserve the right to buy shares of the company in the open market or through further private placements and/or investment vehicles.
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