SA’s investment holding company Labat Africa, which is expanding into the fast-growing market for medical cannabis, has received a regulatory nod to float the business on the Deutsche Börse.
The global market for CBD products is rapidly growing, with Labat saying earlier in 2020 the legal African cannabis market could be worth R104billion by 2023, and SA’s market worth R10.5 billion.
Labat Africa said in a statement that the application to list its equity shares on the Frankfurt Stock Exchange (FSE) has been approved by the Deutsche Börse in an official announcement on Friday, 3 December 2021.
The JSE-listed company said the shares were admitted to trading when the LSE market opened today, without restriction.
The listing was handled and successfully concluded by Renell Bank, a CRR credit institution.
On Friday, 3 December 2021, Labat announced that it had secured a R300 million capital commitment from GR Global Ventures LLC(GRGV) in cash within a maximum of three years in exchange for new ordinary shares in Labat Africa.
In addition, the agreement provides for the issuance of 30 million warrants to GRGV at a strike price of R0.50 (fifty) cents (more than a 100% premium on the current share
price of Labat Africa).
“With Germany’s new coalition government planning to legalise cannabis for medicinal and recreational purposes, the FSE listing will allow Labat to accelerate its cannabis goals in the European market,” Labat Africa informed investors.
“The listing on the FSE will also allow Labat to access capital from retail and institutional investors worldwide, and will also allow new investors to have access to Labat’s shares.”
The group said the legalisation of cannabis in Germany is said to represent the largest cannabis market in Europe.
According to reports in the leading German publication, Der Spiegel, the parties have now managed to agree and align on the legalisation of cannabis for wellness and recreational consumption.
