South African cannabis giant Labat Africa is listed on the Frankfurt Stock Exchange and secures R300M investment


JOHANNESBURG, Republic of South Africa, December 06, 2021 (GLOBE NEWSWIRE) – The South African Cannabis Holdings group, Labat Africa Limited, has double listed its shares on the Frankfurt Stock Exchange (FSE). The shares were admitted to trading at the opening of the market today without restriction.

Labat was listed on the Johannesburg Stock Exchange in 1996, repositioned itself and made a strategic shift to become a fully cannabis-integrated healthcare company in 2019, becoming the first of its kind to be listed in South Africa. .

Speaking on behalf of the group, Labat Africa Managing Director Brian van Rooyen said: “The listing of the ESF is an exciting step for the group. This comes from the new German coalition government that plans to legalize cannabis for medicinal and recreational purposes. The ESF listing will allow us to accelerate our cannabis targets in the European market, especially now with strong negotiations currently underway in the growing cannabis economy of European economic powerhouse Germany.

Germany is set to legalize cannabis nationwide after major parties strike a deal. There will also be provisions relating to advertising, the intention being to restrict the promotion of cannabis, tobacco and alcohol to deter the consumption of young people, such as reported by Der Spiegel. “We are measuring regulations again and again against new scientific findings and aligning health protection measures,” the report says. “This reform has been a long time coming in Germany. The timing was strategic for us, we intend to capitalize on the proverbial first mover advantage, while also taking advantage of the receptive and bullish European investor climate, ”adds van Rooyen.

Labat Healthcare CEO Stanton van Rooyen said: “Our intention is to provide South African and international investors with exposure to high growth investments in the cannabis value chain. Listing on the ESF allows Labat Healthcare to access the capital of private and institutional investors on international markets. It also affirms our long-standing confidence that Labat Africa, through healthcare companies, would find a smart and sustainable solution to meet the global demand for the EU-GMP (Good Manufacturing Practices) certification standard. , for which we are well positioned as a supplier. pharmaceutical grade medicinal cannabis and industrial hemp.

Operationally, Labat Africa has secured funding from GR Global Ventures (GRGV) based in California. GRGV has committed to invest an amount of up to ZAR 300 million over the next three years in cash for equity (“Equity Commitment”) in exchange for new ordinary shares of Labat Africa. The capital commitment will be drawn by Labat Africa through capital calls which the company has the right to exercise with the timing and pricing at Labat’s sole discretion, subject to trading volumes and pricing in accordance with to JSE rating requirements.

Under the Capital Commitment, GRGV is also entitled to receive warrants of up to 30 million new Labat Africa ordinary shares at an exercise price of ZAR 0.50 per ordinary share representing over 100% premium on the current Labat Africa trading price.

Herschel Maasdorp, Group Director of Labat Healthcare, said: “FSE and Capital Commitment enrollment strengthens Labat’s position globally and strengthens our strategy, which aims to support the commercialization of the cannabis concentration of the company. The funding allows the company, while continuing to focus on strict cost controls, to adapt the timing and size of each call for capital to support its ongoing research through clinical trials, growth, customer commitments. , its operating costs and its planned manufacture as well as the export of medicinal cannabis to the European market, while preserving shareholder value ”.

“We hope the funding will enable the company to successfully navigate difficult South African business conditions and secure a strong position for the company in the growing cannabis industry,” adds Maasdorp.

The capital commitment will allow the Company to deploy liquidity as needed rather than completely diluting existing shareholders for an amount of capital that the Company may not currently need. The capital commitment is a strong complement to other financing options available to Labat Africa, such as debt financing, additional equity financing, rights issues or a combination of these.

The expected funding mix, reinforced by the capital commitment, will be implemented over time in the most optimal way for the company given the short and medium term growth objectives, which were announced in June. 2021 as well as in the company’s 2021 interim report. Results.

“We are delighted to have a very high caliber, industry focused US institutional investment group as one of our key stakeholders. As Labat Africa enters the healthcare and wellness market with a focus on cannabis, a partner such as GRGV is a key part of supporting our winning efforts, especially now that we are participating in the larger cannabis market. Europe, ”concludes Brian Van Rooyen.

NOTE TO EDITORS:

Labat Africa Limited is a large group of black owned and managed investment holding companies headquartered in South Africa. The Group, founded in 1995 by Brian Van Rooyen and Victor Labat. We have been listed on the JSE since 1996. With investments in various sectors. Our vision is to be the premier healthcare company in South Africa with a focus on medicinal cannabis. Use current skills and develop new skills to deliver world class products. Running product and process innovation right through to market consumption and everything in between, we are driven by a passion for leadership, a commitment to moving the industry forward and, above all, delivering to medical and wellness cannabis consumers the best possible solution.

For more information visit www.labat.co.za

INFORMATION ON THE FSE LIST INVESTMENT:

The request concerned the double listing of the shares which will be listed under ISIN ZAE000018354 on the free market segment “Cotation Board” of the FSE. Labat Africa, under the laws of South Africa, with LEI NO 9845000R73DF5EE41J88, will remain listed on the JSE under the ticker symbol “LAB”, with the share price in Frankfurt being linked to the share price at Johannesburg. In addition, the issue will be placed in the form of a private placement.

The listing was managed and successfully concluded by Renell Bank, a CRR credit institution, in accordance with section 1 paragraph 3d sentence 1 KWG in conjunction with article 4 paragraph 1 n ° 2 of Regulation (EU) 575/2013 of the European Union. Parliament and Council of June 26, 2013.

Distributed on behalf of Labat Africa by PR Powerhouse

CONTACT: Contact Information Lebo Madiba [email protected] +27 82 392 5339


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