Lesotho’s MG Health Secures US$18M to Boost Production To Export Cannabis Flower and API’s to Key Export Markets
7 May 2023 at 08:00:00
Lesotho’s cannabis fortunes may be changing for the better after leading cultivator MG Health secured new interest from international investors. CEO Andre Bothma says product purity is the key to meeting rapidy growing international demand.
Leading Lesotho cultivator MG Health plans to triple its output after successfully raising US$18 million from international investors. This will add renewed confidence to Lesotho, which lost its early mover advantage in African cannabis and the new investment may help put the Mountain Kingdom back on the global map.
MG Health’s CEO, Andre Bothma said on 2 May 2023 that the funding was secured after the company began distributing into key developed markets in 2021.
“MG Health will expand its portfolio of medicinal cannabis strains and formulated extracts to meet the wider demand in key export markets including Germany, Australia, Poland and Israel”.
He said: “What makes our pharmaceutical grade product so unique and in demand is how pure it is. It is produced in the pristine environment of Lesotho, 2 000 metres above sea level, where the exceptionally clean air quality and our state-of-the-art facilities enable us to consistently produce a non-irradiated product that is on par with the highest quality in the world.”
MG Health is one of a handful companies worldwide that have been confirmed as compliant with European Union (EU) good manufacturing practice (GMP) for medical cannabis , allowing it to export its medicinal cannabis flower and extracts as an Active Pharmaceutical Ingredient (API) to pharmacies in the EU and select other markets.
The company’s Business Development Director, Luke van der Nest says: “Expanding our operations will not only increase our output but enable us to cultivate smaller batches at a higher frequency in order to react to changing conditions and provide a broader portfolio of curated genetics.
“It also helps that we have access to clean water and sufficient electricity and a business-friendly environment in Lesotho with a supportive regulatory framework.”
MG Health, like most cannabis companies in Lesotho, has faced some severe challenges over the past few years. It started its research and development programme in 2018 and says it will look “to incorporate the many lessons learnt over the last five years to optimise its production for the global medical cannabis market and further support its in-country distribution partners."
MG Health supports a large staffing compliment in a remote, undeveloped part of Lesotho that also contributes to numerous business opportunities for local entrepreneurs. To date, the company has created close to 300 permanent jobs with the potential to significantly increase employment at full production. Most employees are from the surrounding communities, and many have been upskilled and trained with educational programmes. The company has executed numerous infrastructure projects for the benefit of the local villages, including ablution, clean water supply and refuse collection facilities.