Murcia confirms due diligence underway as JSE-listed Labat increases its interest in cannabis genetics.
Labat Africa is currently doing a due diligence on Jordyn Murcia’s Green Smoke Room (GSR) with a view to buying a majority share in the pioneering seedbank company. This was confirmed to Cannabiz Africa on 11 August 2022 by Murcia after this was initially disclosed by Labat when it released its latest financial statements on 31 May 2022.
GSR has a cannabis licence in California, which is where it has developed its reputation as an African cannabis seed breeder. It also has a European company dedicated to the preservation of cannabis seeds.
Murcia is well known in the South African cannabis community and made a presentation to Parliament last year saying the establishment of a national seedbank to protect South African genetics was a matter of urgency.
Labat says “The Green Smoke Room has a fully functional e-commerce platform as well as a physical store in Norwood, Johannesburg. However, for the business to operate and expand legally, it needs to have a SAHPRA licence”.
GSR products - seeds, clones, growing material and equipment - will sold through Labat’s Cannafrica stores.
Labat says “Mr Murcia is confident that he can increase the revenue significantly with the correct licencing” and that Labat will assist in this regard. It says it is “currently in the due diligence phase of the transaction to acquire a majority stake in the business for an all share deal”.
Labat already owns Ace Genetics and has identified its Eastern Cape facility, Sweetwater Aquaponics as the site that it is going to be developing an indigenous landrace project.
Labat posted a R24,9 million loss for the 6 months ending February 2022, but is confident its healthcare strategy will gain traction in the second half of the year.