R650m Cannabis Deal Has a South African Company Floating Their Way to the Top
- Highlands Investments has partnered with Goodleaf, a SA cannabis brand, with a deal valued at a massive R650 million
- The news follows a ConCourt ruling to legalise private and personal use of cannabis in the country allowing for Goodleaf to launch a store in Cape Town
- Goodleaf now has two stores and reports state that Highlands Investments is known for teaming up with growing operations
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Goodleaf, one of South Africa's first commercial cannabis brands, has partnered with Highlands Investments in a deal valued at a whopping R650 million.
Following the Constitutional Court decision to decriminalised the personal, private use of cannabis, South Africa's first legal and commercial CBD store Goodleaf was launched in Cape Town in May 2019.
Goodleaf, which exclusively operates with (CBD) products, has expanded by opening another store in Cape Town and one in Johannesburg. Highlands has been known to typically invest in grow operations, focusing on exporting medical-grade CBD and THC to Australia, Europe, the Middle East, and South Africa.
Source: Getty Images
Money spent
Over R470 million has been funnelled in Highlands' two cultivation facilities located in Lesotho. The Kolojane facility produced its first 11-hectare crop in 2020 while The 9-hectare facility situated near Maseru's airport has provided nearly 350kg of high-grade THC since 2019.
The merger will result in Highlands' shareholders holding 35% in the merged entity, whilst Goodleaf holds the majority shares at 65%, according to Business Insider.
Cannabis industry
BusinessLIVE reported in April that the department of agriculture, land reform and rural development released a draft national cannabis master plan to the sector. The plan boasts legislative measures to lift restrictions on cannabis and hemp commercialisation.
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Previously, Briefly News reported that one of South Africa's first legitimate producers of cannabis was estimated to be worth R15 million following an acquisition recently. The details were declared official on Wednesday.
Labat Africa, a JSE-listed holding organisation once popular for traffic solutions and enormous government contracts, said it would pay R11.25 million for a 75% stake in Leaf Botanicals.
Leaf holds a South African Health Products Regulatory Authority (SAHPRA) permit to deliver dagga for clinical use in the Northern Cape. It desires to be a huge export player around the market, according to a report by Business Insider.
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Source: Briefly News
