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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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Fiji police concerned about the increasing number of marijuana plants uprooted from maritime islands

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Concerns have been raised about the increasing number of marijuana plants being uprooted from maritime islands, highlighting the prevalence of illegal cultivation in these areas.

A total of 46,000 plants were uprooted in Vanua Levu, while 146 plants were discovered and destroyed in Vanuabalavu and Gau Island earlier this month.

Assistant Commissioner of Police Operations Livai Driu told fijivillage News that the war against drugs requires a holistic approach, involving not only enforcement but also education and rehabilitation to address the root causes of drug cultivation and use.

He says this demonstrates the strong partnership between communities and the Police.

Driu stresses the importance of community cooperation in combating drug-related activities and praised the ongoing efforts of residents to report suspicious activities.

He adds the Police will continue to work closely with maritime communities to create a safer and drug-free environment.

https://www.fijivillage.com/news/Police-concerned-about-the-increasing-number-of-marijuana-plants-uprooted-from-maritime-islands-x854fr/



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South Africa: Stop arresting cannabis users, Human Rights Commission urges police after complaints about arrests from Rastafarian community.

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The SA Human Rights Commission (SAHRC) has written to national police commissioner Gen Fannie Masemola to express concern over the ongoing arrests of cannabis users and Rastafarians despite a law permitting the private cultivation and use of cannabis by adults.

The private use, possession and cultivation of cannabis by adults was decriminalised in 2018, with President Cyril Ramaphosa signing the Cannabis for Private Purposes Act on May 28 this year.

However, the SAHRC has received complaints about arrests from cannabis users and the Rastafarian community.

“As the festive season approaches, the SAHRC reminds law enforcement, in particular the SA Police Service and the National Prosecuting Authority, that the arrest and/or prosecution of adults for the private use, possession or cultivation of cannabis, as well as making assumptions about dealing, is inconsistent with the law and national operational directives. Such arrests and/or prosecutions could lead to human rights violations being perpetrated by law enforcement,” the SAHRC said.

Since August last year, a directive issued by Masemola titled “Arrests by the SA Police Service for Cannabis — Related Matters” recognised legislation did not prescribe the quantity of the cannabis in possession of or cultivated by an adult to presume it was the unlawful dealing of cannabis.

“Therefore, as things stand, the directive directs that adults may not be arrested on the presumption of dealing in cannabis,” the SAHRC said.

The SAHRC urged the department of justice and constitutional development to consult with the Rastafari and other cannabis-using communities to draft regulations for the Cannabis for Private Purposes Act. This includes advice on a specific commencement date for the act, which has yet to come into effect.

https://www.timeslive.co.za/news/south-africa/2024-12-24-stop-arresting-cannabis-users-sa-human-rights-commission-urges-police/



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Press Release: Health Canada releases new data on cannabis use in Canada – “18% of people who had used cannabis in the past 12 months reported driving after cannabis use, a significant decline from 27% in 2018.”

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The 2024 Canadian Cannabis Survey provides important insights into Canadians’ knowledge, attitudes and behaviours on cannabis use

December 6, 2024 | Ottawa, Ontario | Health Canada

An important part of the Government of Canada’s public health approach to legalizing and strictly regulating cannabis is ongoing and comprehensive surveillance, data collection and evidence gathering. The results from the annual Canadian Cannabis Survey provide a snapshot of public health and public safety data on cannabis in Canada.

Today, Health Canda published the 2024 Canadian Cannabis Survey (CCS) results. The data was collected from April 4th to July 2nd, 2024.

Since 2017, Health Canada has conducted the annual Canadian Cannabis Survey to better understand attitudes and knowledge regarding cannabis, as well as patterns of cannabis use in Canada. Through the information gathered, Health Canada can better understand where support is needed the most and develop program initiatives that will help educate and raise awareness around the use of cannabis.

Findings from the 2024 survey include:

  • The proportion of people in Canada who report smoking cannabis continues to decline. That said, smoking remains the most common method of consuming cannabis (69%), followed by eating (57%) and vaporizing with a vape pen or e-cigarette (37%).
  • The number of respondents who reported getting cannabis from a legal source in 2024 was 72% – an increase from 37% in 2019 to 72% in 2024, with legal storefronts being the most common source since 2019. A smaller proportion reported accessing cannabis through illegal sources (3%) compared to 2019 (16%).
  • 18% of people who had used cannabis in the past 12 months reported driving after cannabis use, a significant decline from 27% in 2018.
  • There was no change in rates of cannabis use among youth (age 16-19) over the past year. Past 12-month cannabis use among youth aged 16-19 was 41%, similar to several previous years (44%, 44%, and 43% in 2019, 2020 and 2023 respectively).
  • Overall, the proportion of respondents who said they used cannabis and reported daily, or almost daily use has been stable since 2018 (approx. 25%), including among youth (approx. 20%).
  • The percentage of people in Canada who said they use cannabis who are ‘at high risk’ of developing problems from cannabis use has remained stable since 2018 (approx. 3%).

Health Canada has made significant investments to educate youth and young adults about the health risks of cannabis, as they are at an increased risk of experiencing adverse effects from cannabis use since the brain continues to develop up until around the age of 25. These efforts include the Spring 2022 Reduce your risk: Choose legal cannabis public education campaign, the Prevention of Accidental Paediatric Cannabis Poisonings among Children campaign in Spring 2023, and the Pursue Your Passion: A Teen Cannabis Education Program, which was re-launched in March 2023 as a virtual program to educate youth and young adults about the health effects of cannabis. The department has also produced public education material that emphasizes the importance of storing cannabis securely away from children and pets.



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