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Northern Cape Leaf Botanicals Sells 75% to Labat in Share Deal

Labat has bought 75% of Leaf Botanicals from award-winning organic farmer Johannes van der Colff, which gives it instant access to dried flower.  

The JSE-listed group issued a SENS announcement on 19 May 2021 advising shareholders of the majority purchase of the Northern Cape cannabis company for R11 250 000. The price will be settled by issuing 11 250 000 Labat shares. 

 

Leaf Botanicals Northern Cape cannabis grow op

 

Labat says it has done a due diligence on Leaf Botanicals and is satisfied the value is realistic. In addition, it has provided the sellers, the Gog van der Colff Trust, with guarantees:

 

“Should the Labat share price trade below R1.00 per share on a 30-day Volume Weighted Ave

 

rage Price basis for a period of 30 (thirty) days immediately preceding the first annual anniversary of the Effective Date being 6 June 2021, Labat will issue additional shares equivalent to the shortfall up to a maximum of 7 500 000 Labat shares”.

 

Leaf Botanicals Johannes van der Colff: focusing on organic flower for export

 

Upington-based Leaf Botanicals is expecting its second harvest before the end of the month, which makes the timing very good for Labat as it will have almost immediate access to dried flower.  Leaf Botanical’s offtake agreement for its May 2021 harvest is with Canadian company Agrotiva Ltd but the acquisition ties in neatly with Labat’s Ace and Axle deal whereby the company will export to the US-based operations around the world.

 

LeafBotanicals to focus on organic

Leaf Botanicals was awarded a SAHPRA cannabis cultivation license in October 2020 and Its facility is both EU(GACP) and USA(GACP) accredited.  CEO Johannes van der Colff, an established exporter of organic grapes, raisins and pecan nuts, is well known in South African agricultural circles. He was awarded the Agri SA/Toyota SA Young Farmer of the Year award in 2011 and was part of the MEGA Farmers program of 2016. 

His expert knowledge of organic farming is now being applied to cannabis. He says “Leaf Botanicals is honoured to be awarded this cannabis cultivation license and considers it a privilege and responsibility to lead South Africa in this sustainable new industry.”

Labat’s statement says: “Leaf Botanicals fits well into the Labat Healthcare segment whose aim is to provide high quality medical cannabis products to a sophisticated and knowledgeable customer base.

“The acquisition brings to Labat an accredited, reliable and credible producer of high-quality

medicinal cannabis, resulting in Labat being active in the most significant parts of the cannabis value chain, from flower to customer, thereby ensuring that quality is priority in every part of that chain. Labat is pleased to take this next step in ensuring that South Africa takes its place on the world stage in the field of medical cannabis.

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