As it looked to expedite growth, a black-owned investment holdings organization in South Africa said that it had acquired an R300 million (US$18.7 million) investment commitment from US-based GR Global Ventures, an entity with expertise in cross-border cannabis transactions.
Labat Africa, which focuses on personal wellness, pharmaceutical-grade medicinal cannabis, and industrial hemp, said the Covid-19 pandemic hampered its first capital-raising process, delaying the execution of several of Labat’s pioneering cannabis programs.
With markets reopening and investors seeking fresh growth opportunities, this funding would expedite the execution and rollout of these sector-leading strategies.
The money will enable the company to pursue critical objectives and goals, including ongoing research through clinical trials, market expansion, increased customer involvement, and expanded manufacturing.
International investment in the business reflects a good market mood about the cannabis sector’s growth potential, the company stated.
“We are happy to have a very high-quality, sector-focused US-based institutional investment firm as one of our main stakeholders,” stated Brian Van Rooyen, CEO of Labat Africa. As Labat Africa grows in the personal healthcare and industrial cannabis sectors, having a partner like GRGV on board is essential to our success.”
Labat Africa’s half-year deficit extended by more than 50% in July 2021, owing to cash outflows from its Force Fuel retail business and the Covid-19 outbreak, but the company was looking forward to greener pastures as it transitioned to the cannabis healthcare sector.
Similarly, in May 2021, the business took a 75 percent share in Leaf Botanicals Pty Ltd, a cannabis growing and cultivation facility and one of the first companies in South Africa to be granted a cultivation and export license.
Labat CEO Brian van Rooyen stated in a statement that the company’s recent business initiatives will enable it to transition to a healthcare firm that spans the complete cannabis value chain.
Leaf Botanicals, according to the firm, will focus on growing high-quality medical-grade cannabis flowers for the export market as part of Labat’s strategy.
Additionally, the business stated that over the next three years, it wants to create an EU-compliant 8000m2 indoor grow facility to meet its offtake commitments and service the medicinal sector.
“The company expects to be able to produce between eight and ten tons of high-grade THC flower to the therapeutic market by the completion of the final building phase,” the company claimed.
