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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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No Suprises Here …..”Former DEA And HHS Officials Suggest Marijuana Rescheduling Could Be Delayed Indefinitely If Trump Doesn’t Proactively Support It”

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If anybody is surprised by the following they need their head examined..

Marijuana Moment

Without proactive advocacy for marijuana rescheduling from President Donald Trump personally, the process could stall indefinitely, former officials with the Drug Enforcement Administration (DEA) and U.S. Department of Health and Human Services (HHS) say.

What’s more, rescheduling proceedings that are currently paused could be suspended altogether if the new administration reinterprets legal arguments about federal drug policy that were made by the Justice Department’s Office of Legal Counsel (OLC) under the Biden administration.

During a virtual event organized by Ohio State University’s (OSU) Drug Enforcement and Policy Center on Tuesday, the officials pulled back the veil on the drug rescheduling process and weighed in on the fate of the proposal to move cannabis from Schedule I to Schedule III of the Controlled Substances Act (CSA).

While HHS and the Justice Department backed marijuana rescheduling following the review initiated by former President Joe Biden, that process stalled near the end of his term due to issues in DEA administrative hearings. It’s unclear when those hearings might resume or how DEA might approach it differently under Trump.

Matt Lawrence, a former senior advisor with DEA, said he sees three potential outcomes for rescheduling in the Trump administration.

The first is that DEA does “essentially nothing at all,” kicking the can down the road and continuing to delay the process without explicitly ending it. That might involve administrative updates along the line, but in essence this would be the path of least resistance.

DEA might alternatively do “something really quick” to finalize the rescheduling rule. But Lawrence said he expects that would be incumbent upon Trump making the issue a “presidential priority.”

Supporters of rescheduling got an unwelcome update on that front last week, however, as the White House Office of Drug Control Policy (ONDCP) released a report that outlined the administration’s top drug policy priorities for Trump’s first year of his second term—and it notably did not mention rescheduling or other cannabis reforms.

Lawrence said he could also see a scenario playing out where DEA moves forward with rescheduling, but the agency determines that it needs to separately propose rules to regulate cannabis as a Schedule III drug to meet international treaty obligations.

Ultimately, however, he said “the biggest thing to predict among those three paths is politics” and whether the administration perceives rescheduling as a political motivator or detractor.

“I leave that to political experts to kind of make that prediction,” Lawrence said. “But if it’s not a political priority—or if it’s a mixed political thing, like it’s a win and a loss—then you’ve got to assume it’s going to be the can-kicking approach.”

Patricia Zettler, a former deputy general counsel at HHS separately said at the OSU event that one factor she’s taking into account is the fact that Trump’s pick to run DEA, Terrance Cole, “has a long record of career service at DEA, which I don’t think bodes particularly well for support of rescheduling.”

Read full report

https://www.marijuanamoment.net/former-dea-and-hhs-officials-suggest-marijuana-rescheduling-could-be-delayed-indefinitely-if-trump-doesnt-proactively-support-it/

 



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REGISTER YOUR INTEREST: International Cannabis Symposium – Sandton Convention Centre, Johannesburg, South Africa May 30 – June 1, 2025

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International Cannabis Symposium

Sandton Convention Centre

Johannesburg, South Africa

May 30 – June 1, 2025

REGISTER

The International Cannabis Symposium: Law, Trade, and Standards is a premier, invite-only event designed for cannabis trade delegations, policymakers, legal experts, and key industry stakeholders. This inaugural symposium will be held on May 30, 2025, at the Sandton Convention Centre, Johannesburg, coinciding with the South African Cannabis Expo (May 30 – June 1, 2025).

This exclusive gathering will bring together global leaders in cannabis and hemp regulation, commerce, and compliance to discuss the latest legal frameworks, international trade opportunities, and industry standards.

REGISTER

Welcome and Morning Keynote

Africa’s Green Revolution: The State of Cannabis & Hemp

From Africa to the World: Expanding African Cannabis Markets

Afternoon Keynote with Steve D’Angelo

Cross-Border Cannabis: Navigating Global Trade Agreements

Cannabis Without Borders: The Globalization of Cannabis Law

Raising the Bar: Global Standards in Cannabis & Hemp Compliance

 

 



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Canada: Metrc kicks off “pilot” program

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Nobody left in the US.. now it’s time for Canada

The Edmonton jnl

A pilot project in Alberta is aiming to transform cannabis product transparency with Metrc’s Retail ID system. By simply scanning a QR code provided at purchase, consumers gain access to lab test results, certificates of analysis (COA), product name, image, cannabinoid, and terpenes, ensuring greater trust in legal cannabis products.

“For the pilot, it’s limited to just one product which is manufactured by Token Naturals and distributed by Plantlife Cannabis. So when consumers scan the QR code, they’ll be taken to a landing page that provides supplemental information on the product,” he said.

The initiative, supported by Alberta Gaming, Liquor and Cannabis (AGLC), Token Naturals, and Plantlife Cannabis, serves as “a proof of concept,” Urbanowicz said.

“We’re in discussions with Token Naturals, Plantlife Cannabis, and AGLC. Our goal is, once we demonstrate the proof of concept, that we’ll be able to expand to additional products, potentially to additional businesses as well,” he said.

Metrc, which has experience deploying the system in the U.S., ensures data accuracy through a structured compliance approach, though noted there’s not the same source of record system in Canada as in the U.S. As part of the pilot, Token Naturals, the local manufacturer located in Edmonton, tests results into their system and generates a QR code. The QR codes and products are then shipped to AGLC’s distribution center, which supplies retailer Plantlife Cannabis. Plantlife then distributes the QR code stickers and business cards to consumers.

https://edmontonjournal.com/business/albertas-new-qr-code-system-enhances-cannabis-transparency-a-first-for-canada?utm_medium=email&_hsmi=105979819&utm_content=105979819&utm_source=hs_email



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