Cilo Cybin Holdings has about R60 million in available capital as it goes into the new year. The group has just released its latest financials showing a healthy return on its investment income to date, but now that it has bedded down its assets, shareholders have high hopes this capital will be put to good effect in the year ahead.
Brett Hilton-Barber, Cannabiz Africa
15 January 2025 at 10:00:00
Cilo Cybin shareholders will be pleased to see the listed group is on a profitable trajectory and that its share price has risen fourfold since its listing last June. But now they're waiting for the real action following the JSE-listed company's December consolidation and there are expectations that it will generate high returns in the year ahead.
Cilo Cybin holdings released its latest financials for the six months ending 30 September 2024 on SENS on 14 January 2025, reporting an increase in earnings per share of 41% compared to the previous six months. Its earnings per share increased to 0,87 cents/share for the six month period ending 30 September 2024. This compares to an earnings per share of 0,51 cents for the period ending 31 March 2024.
Investment income increased by 141% to R2, 561m from R1 064m for the year before, achieving a gross profit of R936k.
However, since these results were compiled, CCH has restructured its assets by buying Cilo Cybin Pharmaceuticals (CCP) so the results do not present any roadmap for analysis for the road ahead. But the figures do show that there is available cash of around R60 million on the books and this is likely to be directed into boosting capacity in the year ahead as product sales enter the revenue equation.
CCP is a SAHPRA-registered cannabis cultivation facility with EU GMP certification based in Centurion. CCP is also the manufacturer of the Cilo Cybin range of alternative health care products that are retailed in South Africa. It is planning on ramping up production and processing of cannabis-related products and other API’s (active pharmaceutical ingredients).
Cilo Cybin founder Gabriel Theron has been planning his strategy since 2022 when he said “We are very bullish on the cannabis sector. Cannabis will be where our focus will be. Reason being that Europe will open up by 2025 and we want to position ourselves now so that we can buy from local producers and make their flower into a finished product and then ship it out into the market.
“Although Cilo Cybin is a medical cannabis brand, we want to set ourselves up as the go-to-guys in terms of third party manufacturing. So that means people with pet ranges, recreational ranges, medical ranges and so on, can come to us to develop their products for them."
Cilo Cybin Holdings (CCH) listed on the JSE’s Alt-X in June 2024 as a Special Acquisition Company (SPAC), issuing 7 101 791 new ordinary shares for R1.00 each. Founder and CEO Gabriel Theron holds control of the company through his A class shares which have 10 times the voting power of ordinary shares.
The fulfilment conditions for listing the SPAC was that an a significant purchase had to be made within 36 months. Theron achieved this within six months by essentially engineering a reverse takeover by the group’s main asset, Cilo Cybin Pharmaceuticals (CCP) for R845 million paid for in shares.
Theron says the acquisition of CCP was the first milestone the group had reached and laid the foundation for future growth in the medical cannabis and biotech markets. The group raised approximately R71 million from its listing of which around R60 million is available.
CCH was last trading on the JSE on 15 January 2025 at R4.50/share, up significantly from last June’s listing price of R1.00/share.
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