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Article: Major Player on African Cannabis Markets in Free Fall….  Share price of Labat Africa, flopped 67%. Why? And will more companies meet the same fate?

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It looks like Labat is in trouble according to this report

 

Though management vows to stage a recovery in 2023, the reasons for Labat’s collapse have raised alarms –  as observers warn the company is doing too much; too fast.

Stock Drop

“It’s such a fall from grace. Though Labat Africa’s stock decline is sobering; the reasons can’t be singular,” says independent economist Carter Mavhiza, speculating that contrary to Labat’s management’s sunny outlook in 2023, the stock might decline even more, rather than recover.

Labat Africa’s stock took a catastrophic fall in 2022 and ended the year at 10 South African cents after debuting at 30 cents. The slide continues with the current stock price representing a 10% loss in January of 2023.

The fall is a remarkable reversal of fortunes for Labat Africa whose shares momentarily soared 16% in December 2021 after it announced that it has successfully listed on the Frankfurt Stocks Exchange in Germany.

Market Maturity

The South African financial and equities market is not yet ready for cannabis, Labat Africa’s CEO Van Rooyen told reporters.. Van Rooyen says his predicament is not unique and cited Cilo Cybn, the colorful South African cannabis startup that flopped massively in November 2022 when it ran a special acquisition purpose vehicle (SPAC) drive to raise ZAR 2bn ($115mn).

Shareholders proposed to buy just ZAR 20,5Mn ($1,18mn) of shares in the proposed SPAC and Cilo Cybn ended up refunding investors their contributions after failing to list the SPAC on the Johannesburg Stocks Exchange. “It is in the company’s best interest to focus on its growth initiatives and postpone listings to a later date,” Gabriel Theron, the CEO of Cilo Cybn, said in a statement issued in November 2022. 

“I sympathize with Labat and Cilo Cybn on these financial struggles,” Mavhiza the economist tells Cannabis Culture. 

“The law around cannabis in South Africa is still fuzzy. Police are still aggressive in shutting down the greenhouse. Investors, therefore, balk at throwing massive amounts of money into the sector.”

Too fast; too much

Other observers say Labat Africa has itself for investors developing cold feet towards its prospects and its shares ultimately struggling. 

“It has bought too many companies on a spree; Labat Africa can’t define itself whether it is a medical cannabis cultivator, processor, or exporter. It wants it all and spreads itself widely,” Dikeledi Matla chairperson of the Soweto Cannabis Alliance Forum, a South African lobby for Black cannabis cultivators, says, arguing that multinational cannabis corporations like Labat Africa are monopolizing the cannabis market in South Africa and dwarfing out small upstart entrepreneurs like him. Matla was referring to Labat Africa’s aggressive operations which have seen in March 2022 acquired 80% of stockholding in Sweet Waters, a specialist medical cannabis cultivator along South Africa’s east coast; buying 70% ownership in Zarenka Group, a Lesotho cannabis manufacturer in 2019; buying Leaf Botanicals, another grower in 2021, etc.

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https://www.cannabisculture.com/content/2023/02/05/major-player-on-african-cannabis-markets-in-free-fall/?mc_cid=e3c432fb75





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Pakistan National Assembly Recommends Amendments To Cannabis Control Bill – to regulate cultivation of cannabis plant, extraction, refining, manufacturing and sale of derivatives of the plant for medical and industrial use

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The Nation reports

ISLAMABAD  –  The National Assembly Standing Committee on Defence on Wednesday unanimously recommended amendments in ‘The Cannabis Control and Regulatory Authority Bill’ to make it in conformity with the Single Convention on Narcotics Drugs, 1961.

The third meeting of the standing committee was held at the Parliament House here under the chairmanship of Fateh Ullah Khan, MNA. On presentation of the bill, the committee was informed that Pakistan being a signatory to the Single Convention on Narcotics Drugs, 1961, was required to establish an agency of the government to regulate cultivation of cannabis plant, extraction, refining, manufacturing and sale of derivatives of the plant for medical and industrial use.

The committee was informed that the same was the reason behind introducing ‘The Cannabis Control and Regulatory Authority Bill, 2024’ in the National Assembly. After extensive debate, the committee while proposing certain amendments in ‘The Cannabis Control and Regulatory Authority Bill, 2024’ unanimously recommended that the National Assembly, on consideration of these amendments, may pass the said bill.

https://www.nation.com.pk/08-Aug-2024/na-body-recommends-amendments-in-cannabis-control-bill?utm_medium=email&_hsmi=93114992&utm_content=93114992&utm_source=hs_email



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Massachusetts: CCC Commissioners Bicker Over Who Takes The Chair

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The Massachusetts CCC descended into total chaos today, after a scheduled 10am meeting to discuss internal Commission governance started 30 or so minutes late and without the presence of acting CCC Chair Ava Concepcion.

Then, in shocking moments (depicted in the video below), the three remaining CCC Commissioners (Chair Shannon O’Brien is currently suspended) were unable to come to consensus as to who would serve as Chair in Concepction’s absence.

Commissioner Kimberly Roy, who was running the meeting, noted her previous disagreements with CCC legal counsel related to a Fall, 2023, delegation memo by O’Brien making Roy acting-Chair. CCC staff, shockingly, overrode that memo (however, it is quite likely that legal decision is under review by state oversight authorities).

A motion to make Commissioner Kimberly Roy failed 2-1, with Commissioner Nurys Camargo voting no, just minutes after Camargo made remarks about how much work there was to be done that day, and why the CCC needed to pick an acting chair quickly.

Camargo then turned down the opportunity to be acting Chair, and a motion to make Stebbins chair was voted down 2-1 (with Roy in opposition).

In turn, the CCC was forced to take a recess because they cannot move forward with today’s agenda in the absence of an agreement as to who will serve as acting chair.

I will have an update as soon as the CCC returns to session.



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Fitzcarraldo Eat Your Heart Out! … Authorities seize ‘narco-submarine’ in South American jungle, illegal drugs and chemicals worth $1.6 billion

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Werner has just been slain!!!

Authorities in Guyana have seized a semi-submersible vessel used in drug trafficking in one of the country’s jungles, Interpol said. The seizure was part of a broader operation to tackle drug trafficking and theft in more than two dozen countries, the law enforcement agency said.

Interpol said the homemade “narco submarine” The boat intercepted in Guyana could carry as much as 3 tons of cocaine at a time. The boat warned that smugglers in the region could send such semi-submarines down the rivers of South America, across the Atlantic Ocean and eventually arrive in Western Europe.

The “narco sub” was seized along with 615 tons of illegal drugs and 505 tons of precursor chemicals worth $1.6 billion, as well as 65 stolen cars, in 31 different countries, Interpol said. The international law enforcement agency coordinated the effort, dubbed Operation Lionfish Hurricane, between April and May in a bid to crack down on drug trafficking networks in South America, Africa and Europe.

According to Interpol, their operation led to 206 arrests. Authorities seized more than 56 tons of cocaine and 52 tons of other drugs, including marijuana, ketamine and tramadol, a prescription opioid that is strictly regulated in several countries due to its high potential for abuse and dependence. The United Nations has noted a sharp increase in the trafficking of tramadol in various parts of the world over the past decade.

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Authorities seize ‘narco-submarine’ in South American jungle, illegal drugs and chemicals worth $1.6 billion



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