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JSE-listed industrial cannabis investment business Labat Africa has announced that it has scored a R300-million investment from US company GR Global Ventures (GRGV).
"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," CEO Brian van Rooyen said in a statement.
The black-owned cannabis holding group said its initial capital raising process was severely impacted by the Covid-19 pandemic
"With markets now beginning to re-open and investors on the lookout for new growth segments, this investment will accelerate the implementation and roll out of these sector-leading initiatives."
Labat's share price was up by 16% early on Monday afternoon.
It also announced on Monday that it was successful in getting a secondary listing on the Frankfurt Stock Exchange.
"We are excited that we are now able to access international cannabis investors and markets with the FSE listing. It also allows international investors an opportunity to enter the lucrative South African market," Van Rooyen said.
Earlier in the year, Labat faced potential suspension from the JSE after failing to meet the deadline to submit financial statements for the six months to end February. It later published its reviewed interim results, saying at the time it remained determined to pursue cannabis interests despite bruising losses and a tough regulatory environment.
In July, Labat, which has completed its transition into the medical cannabis industry, said the shift had put "severe pressure" on the group's finances.
It was also recovering at the time from a "painful cash drain" of its fuel retail business, Force Fuel, and had deconsolidated Force Fuel from its audited results for the year ended 31 August 2020.
