South Africa’s Cannabis Giant, Labat Africa, Lists on the

JOHANNESBURG, Republic of South Africa, Dec. 06, 2021 (GLOBE NEWSWIRE) — South African Cannabis Holdings Group Labat Africa Limited, has listed its shares as a dual listing on the Frankfurt Stock Exchange (FSE). The shares were admitted to trading when the market opened today, without restriction.

Listed on the Johannesburg Stock Exchange in 1996, Labat repositioned and made a strategic shift to become a fully integrated cannabis health company in 2019, becoming the first of its kind to be listed in South Africa.

Speaking on behalf of the Group, Labat Africa Chief Executive Officer Brian van Rooyen said: “The FSE listing is an exciting step for the Group. It stems from the plans of Germany’s new coalition government to legalize cannabis for medicinal and recreational purposes. The FSE listing will allow us to accelerate our cannabis targets in the European market, especially as tough negotiations are currently underway in the growing cannabis economy of Europe’s economic powerhouse, Germany.

Germany to legalize cannabis nationwide after major parties reach agreement. Provisions will also be made regarding advertising, with the aim of limiting the promotion of cannabis, tobacco and alcohol to discourage the use of young people, as reported by Der Spiegel. “We measure regulations time and again against new scientific findings and align measures for health protection,” the report states. “This reform has been going on for a long time in Germany. The timing was strategic for us, we want to take advantage of the proverbial first mover advantage while taking advantage of the receptive and optimistic European investor climate,” adds Van Rooyen.

Chief Executive Officer of Labat Healthcare, Stanton van Rooyen, said: “Our intention is to provide South African and international investors with exposure to high-growth investments in the cannabis value chain. Its listing on the FSE gives Labat Healthcare access to private capital. and institutional investors in international markets.It also reaffirms our long-standing confidence that, through healthcare, Labat Africa would find a smart and sustainable solution to meet the global demand for the EU-GMP (good manufacturing practice) certification standard ), for which we are well positioned as a supplier of pharmaceutical grade medicinal cannabis and industrial hemp.”

Operationally, Labat Africa has secured funding from California-based GR Global Ventures (GRGV). GRGV has committed to invest up to ZAR300 million in cash for equity (“Capital Commitment”) over the next three years in exchange for new ordinary shares in Labat Africa. The Capital Commitment will be entered into by Labat Africa through capital calls which the Company has the right to exercise with timing and pricing in Labat’s sole discretion, subject to trading volumes and prices in accordance with the JSE Listings requirements.

As part of the Capital Commitment, GRGV is also entitled to receive warrants for up to 30 million new Labat Africa common shares at an exercise price of ZAR 0.50 per common share, representing a premium of more than 100% to the current trading price from Labat Africa.

Labat Healthcare Group Executive, Herschel Maasdorp said: “The listing on the FSE and the Capital Commitment strengthens Labat’s position on a global scale and drives our strategy, which is to support the commercialization of the company’s cannabis focus. The funding will allow the company, while continuing to focus on strict cost control, to tailor the timing and size of each capital call to support its ongoing research through clinical trials, its growth, customer engagement, operating costs and planned production. as well as the export of medicinal cannabis to the European market, while preserving shareholder value”.

“We expect the funding will enable the company to successfully navigate the difficult South African trading conditions and secure a prime spot for the company in the growing cannabis sector,” added Maasdorp.

The Capital Commitment will allow the Company to deploy cash when needed, rather than completely diluting existing shareholders for an amount of capital that the Company may not currently need. The Capital Commitment is a strong complement to other financing options available to Labat Africa, such as debt financing, further equity financing, rights issues or a combination thereof.

The expected financing mix, enhanced by the Capital Commitment, will be implemented over time in a way that is most optimal for the company given the short and medium term growth targets announced in June 2021 and in the Interim 2021 of the Company Results.

“We are delighted to have a very high-quality and industry-focused US-based institutional investment group as one of our key stakeholders. As Labat Africa enters both healthcare and wellness with a cannabis focus, a partner like GRGV is an important part of supporting our winning efforts, especially as we participate in Europe’s largest cannabis market,” concludes Brian Van rooyen.

NOTE TO EDITORS:

Labat Africa Limited is a leading black investment holding group, headquartered in South Africa. The Group, founded in 1995 by Brian Van Rooyen and Victor Labat. We have been listed on the JSE since 1996. With investments in various sectors. Our vision is to be the number one health company in South Africa with a focus on medicinal cannabis. Use current skills and build on new skills to deliver world-class products. Drive product and process innovation through to market consumption and everything in between, we are driven by a passion for leadership, a commitment to move the industry forward, and most importantly, to provide medical and wellness cannabis consumers with the best possible solution

For more information, visit www.labat.co.za

FSE LIST INVESTMENT INFORMATION:

The application was for the dual listing of the share to be listed under ISIN ZAE000018354 on the open market segment “Quotation Board” of the FSE. Labat Africa, under the laws of South Africa, with the LEI NO 9845000R73DF5EE41J88, will continue to be primarily listed on the JSE under the ticker symbol “LAB”, with the share price in Frankfurt being linked to the share price in Johannesburg. Furthermore, the issue will be placed as a private placement.

The listing has been handled and successfully completed by Renell Bank, a CRR credit institution, in accordance with and in accordance with Section 1 Section 3d Sentence 1 KWG in conjunction with Section 4 Section 1 No. 2 of Regulation (EU) 575/2013 of the European Parliament and of the Council of 26 June 2013.

Distributed on behalf of Labat Africa by PR Powerhouse