UK medicinal cannabis firm Sativa Investments PLC (NEX:SATI) has decided to allow an option over a farm in Wilshire to grow its own produce to lapse in July.
The company said it believes sourcing raw material will provide greater returns than growing its own supply.
Sativa signed the option on the 7.53 acre site in October at a cost of £85,000.
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The company also announced that it plans to change its name to Sativa Group to reflect its reclassification as a trading company instead of an investment vehicle.
It said it believes the reclassification will “broaden the appeal of the equity opportunity to additional institutions and family offices, many of which are precluded from investing in fund-type vehicles”.
Chief executive and founder Geremy Thomas said: “Sativa delivered on its listing objectives expeditiously and is now into its next phase of becoming a full-spectrum group covering the key value-add parts of the medicinal cannabis and CBD industries.”
Sativa Investments began trading on the NEX Exchange in March 2018 as the UK’s first medicinal cannabis investment vehicle.
Shareholders will vote on the proposed name change at the upcoming annual general meeting.