Africa’s first cannabis-focused blank-check company is set to list later this year with a view to buying companies in the fledgling industry alongside genetics and wearable health-device companies in the US and South Africa.
Gabriel Theron, the founder of South Africa’s Cilo Cybin Pharmaceutical Ltd, aims to sell shares in a special purpose acquisition company in Johannesburg in May and raise a minimum of R500 million , he said in an interview. The entrepreneur will then use the vehicle to buy Cilo Cybin, which he values at as much as R300 million, followed by non-cannabis health companies in South Africa and the US, he said.
Cilo Cybin can’t be listed directly as it doesn’t have a long enough earnings track record to qualify, Theron said. The chief executive officer said last year he planned an initial public offering of the company within 12 months. Cilo Cybin, named after the psychoactive substance in magic mushrooms, uses a strong South African cannabis variety called Durban Poison, which has high levels of tetrahydrocannabinol, or THC, the main psychoactive chemical in marijuana plants.
The firm is the first in South Africa to win the right to grow, process and package cannabis products. It’s also able to sell the products globally, making the licenses more valuable, Theron said.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
VAT and other tax hikes could fund new basic income grant for South AfricaThe major domestic this week will be president Cyril Ramaphosa’s State of the Nation Address, during which he is expected to provide an update on a Basic Income Grant (BIG) for South Africa.
Read more »
5 important things happening in South Africa todayHealth department says calls for the end to lockdown are premature; another messy year of audits for government departments and state companies; Mantashe wants more gas and faster nuclear in SA’s energy mix; and the JSC has recommended Judge Mandia Maya for the role of chief justice.
Read more »
Redistribution of land remains a man’s world in South AfricaRedistribution of land remains a man’s world in South Africa - Legislation and political will are needed to set land targets that consider the needs of women
Read more »
South Africa is seeing a big move to online schools – with new rules incomingListed private school and university group AdvTech has thrown its support behind government plans to regulate online schools in South Africa.
Read more »
South Africa is not a failed state, but we’re fragileSouth Africa is not a failed state, but we’re fragile: With South Africa on the fiscal precipice, the president needs to take hard decisions instead of focussing on re-election
Read more »
New ‘WhatsApp laws’ could stop future riots and social unrest in South Africa: expertsPresident Cyril Ramaphosa has authorised the release of an expert panel report on the July 2021 unrest seen in KwaZulu-Natal and parts of Gauteng.
Read more »