Business: Labat Africa became the first healthcare organization for cannabis

Last updated on September 11th, 2021 at 08:25 am

LABAT Africa has taken every other step ahead in its ambition to grow to be a leading cannabis healthcare corporation by getting into negotiations to acquire a South African Health Products Regulatory Authority-licensed hashish developing crew in the Eastern Cape.

Labat said in a declaration the previous day that it had been granted a 60-day exclusivity period to conclude a due diligence investigation on the proposed acquisition, which has started. Management should now not be reached for in addition remark yesterday.

Labat said it had extended a R112million book-build introduced in May to October 31, whilst the closing dates for two tranches of the Verityhurst subscription for 70 million Labat shares, announced in June, had additionally been prolonged to September 30 and October 31, respectively.

A element of the book-build was once realised in August, which resulted in a subscription for 6 million shares, however “the roadshow is gaining traction, albeit in a tough market”, the directors said. Labat stated in a presentation in July that it aimed to make Labat Healthcare a vertically integrated operation, from cannabis seed to the production of active pharmaceutical ingredients and merchandise for the complementary medicines market.

Meanwhile, Labat Botanicals aimed to set up a “fully Good Agricultural Practice and Good Manufacturing Processes” facility in Lesotho, where land had been secured for this purpose.

Labat Botanicals aimed to produce three hashish products: medical grade hashish flower, tetrahydrocannabinol, cannabinoid oils, concentrates and energetic pharmaceutical ingredients. “Using our genetics bank, we will pick excellent strains to develop in our facility.

These strains will be cautiously chosen and grown in a strictly managed environment to make certain product of the perfect quality is produced for the export market,” the group said.

An off-take settlement had been reached with UK-based New Frontier Holdings, the maintaining agency of Frontier Botanicals, for 4000kg of cannabis flower in the first 12 months, 6000kg for the following 12 months and 8000kg for 36 months thereafter.

(IOL)