Midrand-based Cilo Cybin is going through an IPO and intends using the funds to upscale production with the main focus being exports to Europe, where it expects full-adult use cannabis to be legal within the next few years.
Cilo Cybin Holdings is to be listed on the JSE on 14 November 2022 and intends using funds raised from the public to phase from being a bulk exporter of cannabis flower to one of finished product. The IPO closes on 4 November 2022. Cilo Cybin founder and CEO Gabriel Theron told Engineering News on 30 September 2022 that the company had successfully exported cannabis flower to a South American buyer and was currently doing shipments to Australia.
“We are speaking to offtakers in India. That will be quite a significant volume,” said Theron. For India, Cilo is targeting 50 000 units a month, scaling to 200 000 as soon as demand arises.
“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 has three cannabis production licenses: one of 80 issued nationally for cannabis cultivation; one of three issued nationally for good manufacturing processes of cannabis to be used an active pharmaceutical ingredient (API); and the only good manufacturing process license nationally for converting cannabis products into their final form.
In terms of production, Cilo Cybin has recently produced “quite a bit of volume” in an effort to bolster its stock holding, thereby enabling the company to focus on converting the semi-finished product into oils and other final products, said Theron.
He said scaling up production was dependent on offtake of products, and the company had forecast increasing production to 150 kg of oil a month, which requires about 2 t of cannabis flower.
Based on increased offtake, Cilo Cybin intends to phase most of its sales from bulk orders over to finished products. Changing from bulk to instead selling finished products will result in profits increasing about three-fold, said Theron.
Further, transitioning from bulk to final product sales will translate into about 150 000 units of 30 ml bottles a month. Currently, Cilo Cybin is able to produce 100 000 such bottles a month.
Engineering News reports that besides the cannabis product side of business, Cilo Cybin also wants to increasingly shift focus into a US-based human genetics analysis company, as well as into its health device company.
In terms of health devices and products, Cilo Cybin has a keen eye on devices that can analyse human brains on both an emotional and physical level, the latter to determine severity of physical impacts, such as a concussion. This device would also be able to determine whether medication is working as intended and any consequences of medication on the brain.