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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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Latina woman alleges she was denied job with cannabis nonprofit because she’s not Black

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A Latina from Lawndale is suing an organization that bills itself as fighting for “cannabis justice” with a goal to “heal the legacy of racism in America,” alleging she was told she was not chosen for a position with the nonprofit in 2023 because she is not Black.

Briseida Lupercio Chavez’s Los Angeles Superior Court lawsuit against the Hood Incubator alleges racial discrimination, retaliation and wrongful failure to hire in violation of public policy. She seeks unspecified compensatory and punitive damages.

A Hood Incubator representative did not immediately reply to a request for comment on the suit brought Jan. 5.

According to the suit, the Hood Incubator’s website states its purpose is to fight for “cannabis justice” and to “heal the legacy of racism in America . . . for the health and prosperity” of everyone.

“However, despite its stated vision of being an anti-racist organization, its blatantly discriminatory hiring practices could not be more contradictory to its stated purpose,” the suit states.

Chavez interviewed for a position with the Hood Incubator via Zoom last July with two organization representatives, one of whom is a managing agent, the suit states. The two representatives remained on the Zoom call after the interview and spent 10 minutes talking about why they were  not interested in hiring Chavez because she is not Black, the suit states.

Both representatives mocked Chavez’s race and for saying she had biracial children, telling the plaintiff they found her comments “off- putting” and falsely implying that she only claims to care about Black people because she has Black kids and friends,” according to the suit.

One of the representatives told Chavez that because she is a Latina, she is used to the Latino community “pulling strings for each other,” the suit states.

Chavez was “embarrassed, ashamed, emotionally broken and in financial desperation” after learning that she was not hired allegedly due to her race, national origin and/or color,” the suit states.

Latina woman alleges she was denied job with cannabis nonprofit because she’s not Black

 



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Man allegedly killed roommate, went back to sleep and bought some cannabis before others implored him to call 911

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It is, of course, a law & crime story..

A Maryland man insisted that he shot his roommate in self-defense, but admitted he only called 911 after going back to sleep, buying some marijuana, and communicating with people who implored him to contact authorities, according to court documents obtained by Washington, D.C., NBC affiliate WRC and Fox affiliate WTTG.

Richard Bennaugh, 38, is charged with manslaughter, assault in the first degree, assault in the second degree, and possession of a firearm as someone convicted of a violent felony, show from Prince George’s County show.

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‘There’s only one way to find out’: Man allegedly killed roommate, went back to sleep and bought some weed before others implored him to call 911



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Illegal immigrant cannabis farmer, 30, is allowed to remain in Britain – because being sent back to Serbia would breach his human rights

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The Daily Mail get over excited once again…

A migrant who was jailed over a cannabis farm worth half a million pounds has been granted permission to stay in the UK after successfully arguing he could not be deported as he no longer spoke his native language.

Clirim Kukaj, 30, is ethnically Albanian but was born and brought up in Serbia until at the age of 13 he entered Britain illegally. Seven years later he was granted indefinite leave to remain.

Kukaj and his lawyers have now successfully appealed his deportation on the grounds that returning him to his native country would be a breach of his human rights because he cannot speak the language and can only converse in Albanian.

Immigrational tribunal judge Fiona Lindsley granted the appeal ‘on human rights grounds’, however, the decision has sparked renewed calls for human rights laws to be reconsidered.

A senior Conservative MP told the Telegraph: ‘This demonstrates why we need urgent reform of the asylum system and human rights laws to allow the rapid and effective deportation of dangerous criminals.’

More Blah here

https://www.dailymail.co.uk/news/article-12941079/Migrant-cannabis-farmer-allowed-remain-Britain-human-right-no-longer-speak-language.html



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