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Nutrihold Insists Export Deals Still On; Sells Food Division to Raise Cannabis Capital, Shareholders to Take a Haircut

JSE-listed Nutritional Holdings insists it’s export contracts remain in place despite funding problems relating to its cannabis cryptocurrency (see story here).  The company also says it has sold its loss making food division and will not be going into business rescue as previously announced. 


The bad news is that shareholders will be asked to take a 25/1 share consolidation by 7 June 2021. The share consolidation was detailed in a Sens announcement on 18 May 2021. See the notice and share chat here:


Contracts in place but Covid slowed execution

According to a cautionary notice to shareholders on 11 May 2021, the group said it had concluded a R1.26 billion three-year contract with GIH Distributors for the supply of its “immune booster product” to Germany. It will supply 50 000 units a month to GIH. This will increase to 200 000 units a month in the third year. The contract started at the beginning of January 2021.

The group also concluded a contract with Grovenor Supplements FZCO. The two-year contract, which started last month, is worth R776 million. It provides for the supply of CBD Products to the Ashmore subsidiary based in the United Arab Emirates for the products to be supplied to Asian markets and Japan. The group will provide 60 000 units of CBD Products a month to the market.

The contracts were concluded last year, but the Covid19 outbreak delayed their execution until early this year


Food division sale raises capital for cannabis

On 19 May 2021 the group issued a statement saying it had sold the food division of the business to its CEO, Matthews Suping for R15,2 million. This is an effective about-turn from a statement on 25 February 2021 where Nutrihold said it would “secure business rescue” for this division.

Proceeds from the sale of the foods division is likely to go towards building capacity in Lesotho licensed cannabis growing and processing subsidiary, Ukusekela.

Two weeks ago, Business Day asked the company for evidence that the division was in business rescue as Nutritional Holdings had claimed and asked the JSE if it was concerned about the accuracy of the public claims made by the listed company. 

The JSE has confirmed it is investigating the company and that information public companies publish should not be misleading.

JSE director of regulation Andre Visser said: “The listings requirements state that all parties involved in the dissemination of information into the marketplace must observe the highest standards of care in doing so.”


Nutrihold distances itself from CannaCrypt

The group recently issued two statements distancing itself from a cryptocurrency it tried to sell shareholders in March in a bid to raise money for its fledgling cannabis business. It also issued a clarification statement last week explaining that its cannabis business had started exporting products to new clients later than initially planned due to the coronavirus pandemic. 

Nutritional Holdings announced on 19 May 2021 this week announced that director Nikhyle Dasarath had quit. (

Dasarath is also the founder of CannaCrypt.  

The JSE, the Financial Sector Conduct Authority (FSCA) and the Companies and Intellectual Properties Commission (CIPC) are investigating the firm. 

The company’s sponsors, a requirement for all listed companies, quit in March. The business employed new sponsors, AcaciaCap Advisors, a few days later. The company’s CFO, Suzanne Meyer, who was appointed in November, stepped down in February. 

One Response

  1. Are GIH Distributors and Grovenor Supplements FZCO real companies and do the confirm doing any business with Nutritional Holdings?

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