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Source: Engineering News

Labat Africa reports investor interest as South Africa publishes medical cannabis notice

29 June 2020 – Schalk Burger

JSE-listed medical cannabis investment holding company Labat Africa on June 29 said South Africa’s changing cannabis regulation was helping it to attract investor interest.

“In another clear indication that the South African government views the emerging cannabis sector as a priority, Notice R586 was recently published in the Government Gazette. R586 means that cannabis has now been given Schedule 6 status and, effectively, that medicinal cannabis is safe to use.”

It also cements the Schedule 4 status of cannabidoil (CBD) and de-schedules CBD products. This is another indication of government’s intention to liberate the country’s hemp industry, states Labat. It adds that it is expected that Parliament will soon consider removing cannabis from the Drugs Act, and, therefore, as an illicit substance.
“These important legislative changes for this new industry in South Africa all point to government’s understanding and acknowledgement that the cannabis sector can become an important future contributor to the fiscus, and a job creator, as well as attracting foreign direct investment.”

Labat Africa has strategically realigned its business and in 2019 announced its intention to enter the cannabis and hemp industry. This resulted in various strategic acquisitions being made, relationships being formed and people being brought together throughout the sector’s value, ranging from farming to retail.

On May 5, Labat issued a Stock Exchange News Service (SENS) announcement of its intention to raise up to R112-million by way of a bookbuild from institutional and other investors during a roadshow to fund the rapid expansion of its healthcare business.