Cannabiz Africa Logo in white - business marketplace in Africa

Labat on the Hunt for More Cash; Seeks to Raise 18 m Euros from Select Investors

Labat Africa is on the search for more cash. Barely six months after it raised a US300 m drawdown facility from Californian Investors, the JSE-listed company says it needs more money to stay ahead of the game.

CEO Brian van Rooyen said in a SENS statement issued on 5 May 2022 that “the capital raise comes off a spate of activity by Labat Africa as it continues to expand its influence across the value chains in the cannabis and hemp industries. “We look to be involved in almost every part of the cannabis value chain, from genetics to retail/dispensary.” 

The company is preparing a roadshow to target select European investors and says the “placement proceeds will have a dual purpose of being used to accelerate the implementation and expansion of the Labat Healthcare projects and will also create the much needed liquidity of the Labat Africa share in the International Equity markets”.

Labat is also preparing a circular to shareholders is being prepared to approve a “specific authority to issue shares for cash as well as the issue of 30 million warrants to GR Global Ventures LLC (the Californian investors) at a price of R0.50 per share. A further announcement will be made in due course”.

The company detailed in the SENS release its “cannabis journey thus far” since 2019 when it announced that it was aiming for first mover advantage in the emerging cannabis economy when it acquired The Highly Creative (Pty) Ltd (THC).

• 70% acquisition of CBD Retail Brand CannAfrica (Pty) Limited, with outlets being opened
nationally, to add to its Johannesburg and Hartebeespoort presence;
• 100% acquisition of USA Miami-based CBD lifestyle brand Echo Life (Pty) Limited;
• 100% acquisition of African Cannabis Enterprises ((Pty) Limited (“ACE”), a cannabis genetics, seed, breeding and consultancy company;
• Obtaining the rights to distribute American pre-rolled hemp smokable brand, Ace & Axle, for the African continent for 10 years;
• 70% acquisition of Bio-Data (Pty) Limited, a Cannabis and medical research company;
• 80% acquisition of Sweetwaters Aquaponics, a fully SAHPRA licenced cultivation facility,
exporting to the global pharmaceutical market;
• Establishing the ACE Genetics Nursery for the African Cannabis Genome & Landrace Project
• Listing on the Frankfurt Stock Exchange in December 2021; and
• Establishing international joint venture partnerships for the purposes of large scale Industrial Hemp Processing with a secure off-take framework for raw materials.

Leave a Reply

Your email address will not be published.

Table of Contents

Share:

Email
Facebook
WhatsApp
Twitter
Pinterest
LinkedIn
Telegram
Skype

Subscribe to our free newsletter!