Economy

South African cannabis company lists on German Stock Exchange

Date: Dec 7, 2021

JSE-Listed investment holding company Labat Africa has listed its shares as a dual listing on the Frankfurt Stock Exchange (FSE).

Labat listed on the Johannesburg Stock Exchange in 1996, repositioned and made a strategic shift to become a fully integrated cannabis healthcare company in 2019.

Labat Africa Chief Executive Officer, Brian van Rooyen, said: “The FSE listing is an exciting move for the group. It comes off the back of Germany’s new coalition government planning to legalise cannabis for medicinal and recreational purposes.

“The FSE listing will allow us to accelerate our cannabis goals in the European market, particularly now with robust negotiations currently underway in the growing cannabis economy of the European economic powerhouse, Germany.”

Germany, Labat said, is set to legalise cannabis nationwide after major parties reached an agreement. There will also be provisions related to advertising, with the intent being to restrict the promotion of cannabis, tobacco and alcohol to deter youth use, it said, citing Der Spiegel.

“This reform has been a long time coming in Germany. The timing was strategic for us, we intend to capitalise on the proverbial first-mover advantage, while also taking advantage of the receptive and bullish European investor climate,” said van Rooyen.

Labat Africa has secured funding from California based GR Global Ventures (GRGV). GRGV has committed to invest an amount of up to R300 million ($19 million) over the next three years in cash for equity in exchange for new ordinary shares in Labat Africa.

The Capital Commitment will be drawn down by Labat Africa by way of capital calls which the company has the right to exercise with the timing and pricing at Labat’s sole discretion, subject to trading volumes and pricing in accordance with the JSE Listings Requirements.

As part of the Capital Commitment, GRGV is also entitled to receive warrants for up to 30 million new Labat Africa ordinary shares at an exercise price of ZAR0.50 per ordinary share representing more than a 100% premium on the current Labat Africa trading price.

Labat Healthcare Group Executive, Herschel Maasdorp, said: “We expect that the funding will enable the business to successfully navigate tough South African trading conditions and secure a prime spot for the business in the growing cannabis sector,” Maasdorp adds.

--Businesstech--

 

Comments

comments powered by Disqus

Web Content Viewer (JSR 286)

Actions
Loading...
Complementary Content
CLOSE

Your Name:*

Your Email:*

Your Message:*

Enter Captcha:*