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Labat Seals CSIR Agreement to Fast-Track Cannabis Projects

Labat Seals CSIR Agreement to Fast-Track Cannabis Projects

JSE-Listed Group will use CSIR resources to move into Active Pharmaceutical Ingredient (API) product development

Cannabiz Africa

17 August 2022 at 08:00:00

JSE-listed cannabis company Labat Africa, has signed an agreement with the Council for Scientific and Industrial Research (CSIR) to join forces to fast track the implementation of various cannabis related projects.

The CSIR has carried out extensive work in the areas of both industrial hemp and medical cannabis, Labat Africa said in a statement issued on 12 August 2022.

“The agreement follows in depth discussions which the parties held over the last year. The parties recognise the synergy between them, and wish to explore collaboration in the use of hemp for construction and packaging, among others,” Labat’s directors said.

The agreement would provide for the parties to expand the Labat Africa offering to possibly include medical cannabis product and process development; API (active pharmaceutical ingredient) research development and production, further development of the Labat Africa wellness range; processing and development of THC and CBD infused pharmaceutical products; COVID-19 and disease research; and hemp and cannabis testing services.

This will enhance opportunities within both Sweetwaters Aquaponics as well as BioData, which conduct research and clinical trials using cannabis,” Labat said.

Labat Africa this year acquired 80 percent of Lima Romeo Air, trading as Sweetwaters Aquaponics, an operational medicinal cannabis cultivation facility in Kenton-on-Sea in the Eastern Cape. Sweetwaters is a South African Health Products Regulatory Authority (SAHPRA) approved facility and the acquisition completed the cannabis value chain of the group.

Labat Africa also holds a 70 percent stake in Bio-Data, a cannabis and medical research company conducting clinical trials for use of cannabis in the treatment of pain, depression, cancer and sleep disorders.

In the year to 28 February 2022 Labat’s earnings before interest, tax, depreciation and amortisation reduced to a R9.2 million loss from a R4.4m loss in the 2021 financial year, mainly due to increased cannabis research and operating costs and the reduced profitability from Labat’s other businesses due to the challenging economic environments that they are operating in. Revenue fell slightly to R20.18m from R21.4m, while gross profit fell sharply to R5.77m from R10.46m the year before.

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