Two CBD businesses have announced their intention to move their headquarters to British Crown Dependencies—Tenacious Labs to Jersey and Goodbody Health to Guernsey.
London-headquartered Tenacious Labs is a consumer products group specialising in plant-based ingredients, notably CBD and psilocybin. According to its CEO, Nick Morland, the decision to move to Jersey follows the relaxation of the island’s rules on the proceeds earned from cannabis-related products. Whereas UK laws at present ban investment in non-medical THC products, Jersey’s rules are predicated on the legality of a product in the country or state in which it is sold: proceeds from such legal sales are allowed.
Mr Morland hopes that the move to Jersey will ease development and production of THC products at Tenacious’s manufacturing plant in Denver, Colorado, where it makes edibles, soft gels, pet products and beverages. This would take the firm into a new market for non-medical THC products, complementing its existing CBD brands, including Press Pause, Hoo Raa and Walker & Morland.
Goodbody Health (previously called Sativa Wellness Group) describes itself as “a UK-based aggregator of health and wellness products and services”; the products include CBD brands Goodbody Botanicals and Goodbody Wellness. The company also offers a wholesaling and white label operation in the UK and Europe, has two hemp and CBD testing labs based in the UK and Poland, and a GMP and ISO 22000 accredited CBD extraction and manufacturing plant in Poland. Alongside the CBD operation is a diagnostic testing and screening business, including covid-testing for travellers, and screening for cholesterol, diabetes, heart and prostate, operated through a network of over 200 clinics in the UK. Goodbody states that its business grew nine-fold from 2020 to 2021.
Subject to shareholder approval, Goodbody will change the location of its incorporation—which at present is British Columbia, Canada—to Guernsey. It will de-list from the Canadian Securities Exchange, and retain its listing on the AQSE growth market in London and the OTCQB in North America, which “will ensure that trading in the company’s shares remains possible for both UK and North American investors” according to a company statement.
“This re-domiciliation is intended to better align Goodbody’s corporate structure with its current and future business activities,” the statement announces. “Goodbody has a substantial business presence in the United Kingdom and the European Union, including all of its operations, management and workforce. In addition, the fastest-growing segments of Goodbody, are currently in the United Kingdom.”
Among the expected benefits of the re-domiciliation listed by the board are “to allow future earnings and cash flows to more efficiently fund its ongoing UK and European expansion” and “Reduces the costs and time spent procuring that the company complies with the requirements associated with two material listings that have entirely different regulatory regimes which will allow management to focus on commercial activities”.
An AGM and special meeting are expected to be held in August, at which shareholders will be able to vote on the proposed plan. “Subject to shareholder approval, the company anticipates that the change of the place of incorporation will become effective later in the third quarter of 2022.”