Cilo Cybin Holdings Hopes to Raise at Least R500 m Through JSE Listing
Founder Gabriel Theron says cash raised through the IPO will be used to purchase and upgrade Cilo Cybin Pharmaceuticals’ Centurion cannabis facility and to invest in health and wellness solutions that boost longevity and the quality of life.
Cannabiz Africa/Denene Erasmus Business Day
27 September 2022, 12:00:00
Cannabis entrepreneur Gabriel Theron says the uptake in shares in Cilo Cybin Holdings has been ‘encouraging’ and he hopes to raise between R500 million and R2 billion before the IPO ends on 4 November 2022.
Theron told Business Day's Denene Erasmus on 26 September 2022 that Cilo Cybin has started speaking to institutional investors but are first focusing on “retail clients”.
The shares are being offered to the public from a starting amount of R1,000 for 1,000 shares. Cilo Cybin’s prospectus says it seeks to place itself in the market of health and wellness solutions by combining “biohacking, biotech and pharmaceutical” information.
By listing as a CCH as a SPAC, all the money raised through the IPO may only be used for the acquisition or merger of assets, and these must be finalised within 24 months of the IPO.
The SPAC’s first acquisition will be Cilo Cybin Pharmaceuticals’ (CCP) the SAHPRA-licensed manufacturing facility in Centurion, that Theron says has the capacity to produce about R150m worth of cannabis and vaping products a month.
Funds raised from investors IPO will be used to upgrade and expand the facility and ensure EU accreditation. Theron says the current capacity for extracts of about 10 kg of oil a month will be raised to 150 kg.
The business has a collaboration agreement with the Vaal University of Technology for research & development in exchange for royalties.
Between 2023 and 2026 the business also plans to invest in an analytical laboratory for cannabis and psychedelic testing and in expanding its distribution and retail channels.
Theron, a former CEO of state-owned forestry company SAFCOL, started Cilo Cybin Pharmaceutical (CCP) in 2018, and since the beginning of 2022 the company has been marketing its own branded medical cannabis, vaping and supplementary health products. It was one of the first companies in South Africa to get SAHPRA licensing to grow, process, package, label and sell medical cannabis and its products.
The existing product range includes non-psychoactive CBD cannabis products, which retail through various channels, and high-THC products specially for patients suffering from chronic pain or other negative reactions caused by cancer treatments.
The company also offers third-party manufacturing and packaging services to the budding SA cannabis industry.
Amsterdam Cannabis Expo Due This Weekend Exposed as the Latest Scam in the Industry!
Trend-setting conference exposed as a fabrication, scammers lift money off potential exhibitors
If You're in Gauteng, Get There: Africa's Biggest Cannabis Get Together This Weekend
Africa's Biggest Cannabis Expo kicks off at the Sandton Convention Centre 18 - 20 November 2022
Is Justice Minister Ronald Lamola Secretly Opposed to Cannabis Reform? And Why Hasn’t He Come Clean About “White-washing” Fraud at a Drug Rehab Centre?
Questions hang over Lamola's legal firm which was paid millions for a botched lottery investigation before he was made a Cabinet Minister
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