Labat Africa Gets Listed on Frankfurt Stock Exchange, R300m in Funding for Cannabis Company
- Labat Africa Group will be listed on the Frankfurt Stock Exchange following Germany's coalition government announcing they want to legalise cannabis
- The group have secured R300 million in funding from GR Global Ventures, which they will receive over the next three years
- Labat plan to use the funding to expand their operations and recover losses incurred due to the Covid-19 pandemic
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FRANKFURT - Labat Africa Group, is an investment holding company that focuses on cannabis healthcare. The group has been listed on the Johannesburg Stock Exchange (JSE) since 1996 and will now also be listed on the Frankfurt Stock Exchange (FSE).
Germany's newly formed coalition government announced that they plan on working towards legalising cannabis for both recreational and medicinal purposes. This prompted Labat to list on the FSE.
“The FSE listing will allow us to accelerate our cannabis goals in the European market, particularly now with robust negotiations currently underway in the growing cannabis economy of the European economic powerhouse, Germany," Labat said.
Source: Getty Images
More funding for Labat and consequences of stock exchange listing
According to BusinessTech, GR Global Ventures (GRGV), an LLC based in California, has committed to investing R300 million in Labat over the next three years and Labat, in turn, has agreed to give them shares.
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Following the news of GRGV's investment commitment, Labat's share price rose by 4.17%. The investment will give Labat a chance to recover money lost due to the Covid-19 pandemic creating challenges for the group's capital raising process, IOL reports.
Labat Africa Group's chief executive, Brian Van Rooyen, said that they are grateful for the investment and plan to use the funds to expand its growth, manufacturing and clinical trials.
Reactions to Labat Africa listing on FSE and securing funds
@DeonTrytsman believes:
"Just keep the majority share in local hands."
@Skuilnaam7 said:
"The government is helping these companies get a monopoly while adding so much red tape that makes it nearly impossible for average South Africans to competing in the market."
@JeSuisBahati asked:
"First they listed on the FSE, now they have American investors. What's the third domino?"
@wa_Khazamula shared:
"I was expecting black emerging farmers to hit the JSE, after they're the ones who suffered police brutality and wrongful arrest, not to mention public humiliation for the love of cannabis."
@MotTshepo said:
"America monopolizing everything."
Cape Town and London based investment firms come together to place an offer on Ster Kinekor
Previously Briefly News reported on the struggling cinema company Ster Kinekor is currently under business rescue and a South African company from Cape Town and a London-based firm have teamed to put up an offer for the company.
Green Point Capital and Blantyre Capital have up an updated offer for Ster Kinekor that was well received by blockbuster company's interested parties.
Ster Kinekor's business rescue practitioner, Stefan Smyth says the details of the offer will be published in the next few weeks but they are pleased with the outcomes.
Source: Briefly News
