Monday, March 27, 2023

SA’s first specialised dagga investment company to go ahead with JSE listing | Fin24

SA's first specialised dagga investment company to go ahead with JSE listing | Fin24

Africa is about to get its first itemizing of a medical cannabis-focused SPAC, or particular goal acquisition firm, when Cilo Cybin Holdings Ltd. raises cash in Johannesburg later this 12 months.

The firm is looking for as a lot as R2 billion, mentioned Gabriel Theron, who leads the enterprise. The share supply will open on 12 September and shut in November.

“The first step of the plan with the money raised is to acquire an existing cannabis manufacturing facility and to super-size its capacity,” mentioned Theron, who arrange and is a component proprietor of the proposed web site. “We want to position ourselves as one of the largest processing hubs for the cannabis industry in Africa.”

The preliminary public providing on South Africa’s inventory alternate will likely be simply the fourth SPAC itemizing in Africa and a primary for the hashish trade on the continent, in response to knowledge compiled by Bloomberg. 

While the recognition of blank-check firms – as SPACs are additionally identified – has been on the wane lately within the US and Asia amid tightening regulatory scrutiny, the Cilo Cybin transfer signifies there should still be urge for food in Africa.

Cilo Cybin’s acquisition goal is a facility in Pretoria that has the capability to provide about R150 million price of hashish and vaping merchandise a month, mentioned Theron. The plant is one of many entities in South Africa to have been given a license to domesticate or manufacture hashish merchandise.

Acquisitions of firms that take a look at mind well being and genetics will then be thought of, he mentioned. The firm could later try to checklist on the Nasdaq alternate in New York to lift additional funds.

If or when the market develops, the corporate plans to discover manufacturing choices for merchandise of psilocybin, the energetic ingredient of magic mushrooms from which the corporate takes its title.

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