Cilo Cybin Heading Back to the JSE, this Time with Malaysian Support
Five months after pulling a planned initial public offering South African medical cannabis company Cilo Cybin Holdings plans to try again — this time with the backing of Malaysian biotechnology firm ALPS Global Holding.
Loni Prinsloo, Bloomberg News
21 April 2023 at 11:00:00
This report was first published by Bloomberg on 19 April 2023
ALPS Global will underwrite a Cilo Cybin special purpose acquisition company, or SPAC, with R54 million and take a majority stake in the Pretoria-based company with the aim of listing it in Johannesburg by mid-year.
“The underwriting of the SPAC will allow the firm to list by way of introduction on the Alternative Exchange in Johannesburg,” said Gabriel Theron, Cilo Cybin’s founder, in an interview.
“Following that, we plan a second raise in dollars, tapping into the ALPS network in Malaysia and Singapore.”
Cilo Cybin is the first South African company to win the right to grow, process and package cannabis goods, and will manufacture different products for ALPS that focus on wellness, biotechnology and medical services. Its initial attempt to list failed after capital raising was slower than anticipated and negotiations then began with ALPS, which says it’s valued at about $1.3 billion.
The SPAC will be used to buy Cilo Cybin’s existing pharmaceutical unit, which cultivates cannabis strains with high levels of tetrahydrocannabinol, or THC, the main psychoactive chemical in marijuana plants. One of those is Durban Poison, a strong strain of cannabis that’s well known locally.
“Our interest in Cilo Cybin is the potential for future drug development that can be produced for diseases such as Parkinson’s,” said ALPS chief executive officer and founder, Tham Seng Kong, in the same interview. “Cannabis is only the beginning.”
Cilo Cybin is named after the psychoactive substance in magic mushrooms, which it plans to research and market products from.
The SPAC deal will result in ALPS holding about 85% of the cannabis entity, including its existing 10% stake. The general public will hold 10% of the listed entity and Theron the balance.
ALPS plans to list in New York on the Nasdaq toward the end of the year, Tham said.
Justice Dept Admits No Rational Evidence Behind Plant Limits in Cannabis Bill as State Lawyers Come Under Fire in Parliament
The Justice Department took flak in Parliament this week during stakeholder input into the Cannabis for Private Purposes Bill where it became evident that state law-makers are clueless as to what Government's intended vision for cannabis is. They remain conceptually and technically completely out of their depth - and lazy to boot as they have not bothered to bring any rational evidence to back up what is truly a pathetic legislative interpretation of the 2018 Constitutional Court ruling legalizing the private consumption of cannabis.
SA to Lift Hemp THC Limit to 2% But Cultivar Restrictions Remain a “Lethal Impediment” to the Industry
Government has made no official announcement about the "significant spike" in raising acceptable THC levels in hemp. It signalled its intentions in a clause in the Cannabis for Private Purposes Bill which will be welcomed by stakeholders. However, cultivar restriction could self-sabotage all the good intentions.
Cannabis in South Africa: The People’s Plant
We are a civil society organisation with the interests of the existing Cannabis industry and the Human Rights of ALL citizens at heart.
Resources & Equipment
Explore cannabis growing equipment for growing weed at home.
Whether you’re just starting out, or you’re looking to enhance your outdoor or indoor weed grow setup – we have the perfect range of cannabis growing equipment to match your marijuana growing ambitions.
Find everything from LED grow lights, grow tents, fans, and hydroponic setups, to environmental equipment and controls, harvesting accessories, extraction equipment and plenty more.
Design your ideal cannabis growing setup with high quality growing equipment available in South Africa.
Explore cannabis growing equipment we’ve curated from reliable online suppliers in South Africa