Empowered JSE-listed investment holding enterprise Labat Africa has acquired a 70% interest in the Zarenka Group for R57.five-million in shares.
Zarenka has an interest in six cannabis licences in Lesotho, which enables it to cultivate, harvest, manufacture, distribute, import and export cannabis for healthcare and recreational use and for any other use which is legal in the nation acquiring the goods.
The acquisition of 70% in Zarenka follows a current announcement detailing the acquisition of Knuckle Genetics, which produces cannabis seeds and genetic supplies for medicinal treatment options, as effectively as in the Pac-con pharmaceutical facility which manufactures liquids, tablets, capsules, creams and gels.
The deal with Zarenka is a vital step forward in Labat’s cannabis approach, it says.
The building of the Zarenka facility in Lesotho is below way, with production set to commence on November 1.
This will involve, in addition to other individuals, setting up containers, nurseries, offices and greenhouses, recruiting employees, appointing master growers, appointing airfreight agents and exporting the initially consignment of solution.
The Zarenka implementation strategy is backed by an offtake commitment from an international pharmacy group and the establishment of the website in Lesotho will be funded by Zarenka.
Zarenka has offtake agreements with 1 of the biggest European cannabis pharmacy retail outlets.
Labat stated its partnership with Zarenka will raise Zarenka’s profile and enhance corporate governance and transparency, which comes with getting aspect of a publicly listed enterprise, therefore satisfying prospective investors.
Meanwhile, Labat also announced on Friday that its most recent tests on its Knuckle Genetics strains had yielded a 31% tetrahydrocannabinol (THC) content material. It highlighted this as a “remarkably superior result”, and noted that there was large demand for strains with a THC content material of above 30%.
Labat Cannabis CEO Mike Stringer confirmed that the production of cannabidiol ( CBD) oils was imminent at its South African Wellness Merchandise Regulatory Authority authorized facility in Durban. The enterprise expects its initially run of production to be completed later this year.