Labat Africa is taking steps in the growing cannabis economy
Share this article:
Listed on the JSE, Labat Africa Ltd is taking steps to become a major player in the cannabis industry. The company has acquired a 75% stake in Leaf Botanicals Pty Ltd, a cannabis cultivation and cultivation facility and one of the first companies in South Africa to be granted a cultivation and export license.
Labat Africa recently announced that it has entered into an agreement with the global smokable brand Hemp and Cannabidiol (CBD), Ace and Axl.
In a statement, Brian van Rooyen, Labat’s CEO, said these recent business moves would lead the company into a healthcare business that spans the entire cannabis value chain.
“We have recently made significant investments in healthcare, with an emphasis on manufacturing CBD pharmaceutical, health and wellness products. and the growth and cultivation of EU-compliant, high-tetrahydrocannabinol (THC) cannabis for the European medical industry, ”said van Rooyen.
The company said Leaf Botanicals in Upington, North Cape, is best known for its partnership with Carpe Diem. Carpe Diem was founded in 1932 and is one of the largest producers and exporters of organic table grapes, raisins and pecans in South Africa.
Leaf Botanicals currently has one hectare of cannabis growing and a 300 square meter processing facility licensed by the South African Health Products Regulatory Authority (SAHPRA) that is fully compliant with the World Health Organization’s GACP (Good Agricultural and Collection Practices) guidelines as well as the United States (USA) GMP (Good Manufacturing Practice) regulations, ”it says.
According to the company, Leaf Botanicals will focus on producing high quality medicinal cannabis flowers for the export market as part of Labat’s strategy.
Van Rooyen said that Labat intends to set up an indoor grow facility to GACP and GMP specifications to produce high quality medical grade cannabis that would serve its pharmaceutical extraction in Europe.
The company also said it has plans to develop an EU-compliant 8,000 square meter indoor grow facility within three years to meet its purchase commitments and serve the pharmaceutical market. “By the end of the final construction phase, the company will be able to deliver between eight and 10 tons of high quality THC flowers to the drug market,” the company said.
Through ACE Genetics (Africa Cannabis Enterprises – a wholly-owned subsidiary of Labat), Labat entered into an exclusive distribution agreement with Ace and Axle to secure distribution rights in Africa for the next decade.
Van Rooyen said Ace and Axle, a US-based company, are making a premium-quality CBD smoking product for hemp to be launched in South Africa.
“Compared to tinctures, inhalation has been shown to increase the bioavailability of CBD and help users take better advantage of the compound’s powerful healing benefits – without getting high,” said van Rooyen.
Van Rooyen said that in addition to the distribution agreement, Labat will supply Ace and Axle with its worldwide requirements for hemp CBD tobacco products. “Labat will use its newly acquired Leaf Botanicals facility to cultivate the raw materials under the guidance of van der Colff, who is considered one of the leading farmers in the country.”
“With the acquisition of Leaf Botanicals and Ace and Axle, we hope to expand our influence in every area of the sector and encompass the entire value chain to enable a holistic, self-sustaining cannabis ecosystem,” said Van Rooyen.
ANNUAL REPORT ONLINE