Intiva Therapeutics

Greece recently granted Intiva one of the earliest licences in the European Union to undertake this business. The licence is published in Gazette No. οικ.123974/1379/Φ64.143, and allows us to produce, export, and distribute final cannabis products.

Land for production as well as expansion has been secured. Intiva will build its cultivation and processing facilities in Kozani, Western Macedonia, Greece. The facilities will include 55,000m2 of state-of-the-art greenhouses, located on 9.75 hectares of land, for which Intiva has acquired leases for a period of up to 27 years. We have also secured an additional 8 hectares of land for future expansion. Worth noticing is the natural freshwater aquifer that runs under the property, which will reducing water intake cost.
Kozani is well situated to support Intiva’s business model. Geographically Kozani is close to transportation hubs with two airports and one major harbour within driving distance which will support exports to Europe. Also beneficial is the climate and access to a well-educated workforce. Thessaloniki is the closest city, with a population of 813,000.

Cashflow positive in year one. The first phase of development is to complete the processing plant, the offices, 48 greenhouses and all supporting facilities capable of supplying 4 harvests each year. Upon completion this will facilitate the production of 12,400 kg of high THC oil per year, totalling sales worth €86.4 million. We expect the company to be cashflow net positive from the end of the second quarter of the second year and from then onwards to cover the costs of future development from internal cash flows and future receipts from the government grant scheme. The expansion beyond the first 48 greenhouses will allow us to more than double our production and sales.

Our conservative approach means upside to our numbers. The 2 principal drivers for revenue have been assumed to be conservative: (i) Yields per harvest should be higher than 600kg. (ii) Revenue per kg should be higher than €36k.

Once Intiva has completed its equity funding (already underway), it will qualify for an EU government grant in the form of the EU ESPA (ΕΣΠΑ) grant under Regulation EU 1303/2013 as amended. Provided all necessary provisions are successfully completed, Intiva will qualify for a grant equal to 70% of the capital expenditure. The funding required for the first phase, assuming that the EU grant is awarded is equity of €12 million and the government grant of €8.7 million in the first year. As the Company builds additional greenhouses and therefore incurs further capital expenditure, additional grants will be received. The Company has retained an expert consultant who is conducting this process in accordance with standard market practice.

A strong team. Intiva’s leadership team has extensive experience in the cannabis industry, and is inclusive of board-certified medical professionals, agronomists, and executives with strong track records. We will also rely on a roster of local professionals, including pharmacists and a team of specialists from the leading Greek agricultural consultancy IA-Agro who specialise in cannabis cultivation and extraction, but who draw on experience from a diverse set of industries including solar energy, water management, organic cultivation, carbon footprint etc.