The share price of Labat Africa, the JSE-listed black-owned investment holdings group in South Africa, rose 4.17% to R0.25 after it said on Friday that it had secured a R300 million investment commitment from US-based GR Global Ventures, an entity with expertise in cross border transactions in the cannabis sector, as it sought to accelerate growth.
Labat Africa, with a focus on personal wellness, pharmaceutical grade medicinal cannabis and industrial hemp, said its initial capital-raising process had been severely impacted by the Covid-19 pandemic, which had resulted in slowing down the implementation of some of Labat’s pioneering cannabis initiatives.
With markets now beginning to re-open and investors on the look out for new growth segments, this investment would accelerate the implementation and roll out of these sector-leading initiatives.
The funding would unlock key opportunities and initiatives for the company, including ongoing research through clinical trials, growth in the market, more customer engagements and further manufacturing.
The international investment into the business is a signal of the positive market sentiment with regard to the potential for growth in the cannabis sector, it said.
Brian Van Rooyen, the chief executive of Labat Africa, said: “We are pleased to have a very high-quality, sector focused US-based institutional investment group as one of our key stakeholders. As Labat Africa continues to mature in the personal healthcare and industrial cannabis industries, a partner such as GRGV is a key component to supporting our winning efforts.”
BUSINESS REPORT ONLINE