Connect with us

breaking news

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?

Published

on


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.

Read more

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





Source link

Continue Reading

breaking news

Massachusetts: Office of the Inspector General Publishes Press Release Re Appointing A Receiver To Manage State’s Cannabis Commission

Published

on

By


Independent journalist Grant Smith Ellis  writes today to linked in

Press release from Massachusetts Inspector General confirms that a decision in June of 2024, by three CCC Commissioners, to strip the powers of acting agency Executive Director Debbie Hilton-Creek led to today’s emergency hearing request on Beacon Hill.

 



Source link

Continue Reading

breaking news

Movie Time In Oregon. Special Screening of Frenchy Dreams of Hashish

Published

on

By


CHEECHABLE & OG EMPIRE PRESENT:

A SPECIAL 7/10 with FRENCHY CANNOLI! We are pleased to announce a special screening and Oregon premier of the movie Frenchy Dreams of Hashish, a documentary by Jake Remington. Frenchy Dreams of Hashish showcases master hashishin Frenchy Cannoli’s lifelong pursuit of perfect hashish and highlights the ethos of sustainable, sun-grown cannabis. Join us as we celebrate the art of making hash and honor the late master, Frenchy Cannoli. Get your tickets here!

 



Source link

Continue Reading

breaking news

Curaleaf Start Process Of Getting Their Claws Into The UK’s National Health System – With Former MP (Resigned Today 30/5/24) As The Front Man

Published

on

By


It’ll take a while but the business plan to get Curaleaf products available via the NHS starts here…and the front man is  now former Conservative MP George Freeman

See the press release dated 28 May (scroll down)  about his involvement and and what a surprise

30 May 2024

George Freeman is no longer a Member, but was most recently the Conservative MP for Mid Norfolk, and left the Commons on 30 May 2024.

https://members.parliament.uk/member/4020/career

 

 

 

Positioned at the heart of the life sciences sector, the Cannabinoid Research & Development Group UK is a new research strategy group led by academics, researchers, clinicians, patients and industry.

The group will propel scientific research and development of pharmaceutical cannabinoid-related products in the UK.

Our ambition is to develop and implement a comprehensive strategy to transform the UK into the global leader in cannabinoid research and medicine development.

We will build a robust ecosystem by integrating universities, research institutions, investors, businesses, and the NHS – driving innovation and development, nurturing top talent and fostering advances in healthcare.

 

 



Source link

Continue Reading
Advertisement

Trending

Copyright © 2021 The Art of MaryJane Media