South Africa’s Cannabis Holdings Group Labat Africa Limited has listed on the Frankfurt stock exchange after Germany's almost-certain cannabis legalization and has secured funding from California-based GR Global Ventures (GRGV). GRGV has committed to invest an amount of up to ZAR300 million (20 million USD) over the next three years in cash for equity in exchange for new ordinary shares in Labat Africa.
Labat Healthcare Group Executive, Herschel Maasdorp, said: "This bolsters Labat’s position on a global scale, and puts drive behind our strategy, which is intended to support the commercialization of the company’s cannabis focus. The funding enables the company, whilst it continues to maintain focus on strict cost controls, to tailor the timing and size of each capital call to support its ongoing research through clinical trials, its growth, customer engagements, operating costs, and planned manufacturing as well as the export of medicinal cannabis into the European Market, whilst safeguarding shareholder value. We expect that the funding will enable the business to successfully navigate tough South African trading conditions and secure a prime spot for the business in the growing cannabis sector.”
“We are pleased to have a very high caliber and sector-focused USA-based institutional investment group as one of our key stakeholders. As Labat Africa comes to market in both Healthcare and Wellness with a Cannabis focus, a partner such as GRGV is a key component to supporting our winning efforts especially now that we are participating in Europe’s largest cannabis market,” concludes Brian Van Rooyen, Labat Africa Chief Executive Officer.
For more information:
Labat Africa
www.labat.co.za