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Labat picks up 80% of E Cape Grow Op for R10m; Will Invest Further to Set Up Cannabis Genetics Project

Labat aims to triple capacity at Kenton on Sea facility 

JSE-listed Labat Africa has purchased 80% of Sweetwater cannabis farm in the Eastern Cape for R10 million. It plans to make significant capital investment in the SAHPRA-licensed Kenton-on-Sea facility, where it will set up a programme to protect and develop African landraces.

Engineering News reported on 2 March 2022 that Labat purchased the shares in Sweetwater’s holding company, Lima Romeo Air, in cash. The assets include a cultivation facility, 1.5 ha of land, a 1 100 m2 aquaponic growing facility, five growing tunnels and 216.27 kg of dried stock, 10 kg of which has been presold to Australia and does not form part of the acquisition. The Sweetwater acquisition will also enable Labat to accelerate an offtake agreement with a Swiss pharmaceutical group.

The company says Sweetwater currently has an offtake agreement with an Australian pharmaceutical client and also recently facilitated a number of transactions for the supply of cannabis to Europe. Sweetwater was the party that put together the Christmas Day North Macedonia shipment from Highlands Investments in Lesotho.

 

Sweetwater to house Labat’s African cannabis genome project

Labat says it will make a significant investment in the facility to upgrade its capacity from 500 kg/year to 1,8 tons/year. It says it will use its funding lines to set up a EU GMP facility with the assistance of a German pharmaceutical company and the operation will be supported by a team of highly skilled breeders, growers and researchers, 

The company says that in line with its “Healthcare Roadmap”, it intends establishing the Ace Genetics Nursery for the African Genome and Landrace project at the same location with a view to commercialising  the Ace Genetics Seedbank by early summer.

Since its listing in Frankfurt in December 2022, Labat says it has been regularly approached by international buyers for the supply of high-quality, high THC flower from South Africa. It says South African investors can trade in its Franfurt shares on an international brokerage platform.

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