South African cannabis company details expansion plans following R300 million cash injection, including Europe and US

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The company has acquired a 100% share in Miami-owned CBD lifestyle brand Echo Life which comprises a diverse FMCG product portfolio and has obtained exclusive rights to distribute American pre-rolled hemp smokable Ace & Axle as well as its other products. Labat listed on the Johannesburg Stock Exchange in 1996, repositioned and made a strategic shift to become a fully integrated cannabis healthcare company in 2019. In December, the group announced a R300 million cash injection from California-based GR Global Ventures in exchange for ordinary shares, funds of which will be allocated over a three-year period. Echo Life and Ace & Axle will form part of Labat’s retail portfolio that already includes Cannafrica, a medicinal and luxury CBD lifestyle brand with three outlets in South Africa, an online store and three additional stores opening in the coming months. In addition, e-commerce exists for Cannafrica, Echo Life and Ace & Axle, respectively, it said. According to Labat’s group executive for Business Development, Herschel Maasdorp, the company’s expansion presents potential investors with a unique opportunity to diversify their stock portfolios as it comes with solid growth prospects. “Labat is a first mover in the cannabis economy and a market leader. We are involved across the value chain in the cannabis industry, from farming and manufacturing to beneficiation, distribution and, more recently, retail.” Labat said it is going into the market with retail products that are compliant with health regulators. Cannafrica’s products, which include cannabidiol medicinal drops, edibles, and supplements, are aligned to South African Health Products Regulatory Authority (SAHPRA) regulations whereas Echo Life adheres to standards set out by the US Food & Drug Administration (FDA), it said. Retail leap Labat said it entered into retail in the thick of the Covid-19 pandemic when it opened its first of three Cannafrica stores…

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Source : South African cannabis company details expansion plans following R300 million cash injection, including Europe and US

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