Africa is about to get its first itemizing of a medical cannabis-focused SPAC, or particular function acquisition firm, when Cilo Cybin Holdings raises cash in Johannesburg later this yr.
The corporate is looking for as a lot as R2 billion, mentioned Gabriel Theron, who leads the enterprise. The share provide will open on September 12 and shut in November.
“Step one of the plan with the cash raised is to accumulate an present hashish manufacturing facility and to super-size its capability,” mentioned Theron, who arrange and is a component proprietor of the proposed website. “We wish to place ourselves as one of many largest processing hubs for the hashish trade in Africa.”
The preliminary public providing on South Africa’s inventory alternate will likely be simply the fourth SPAC itemizing in Africa and a primary for the hashish trade on the continent, in line with information compiled by Bloomberg.
Whereas the recognition of blank-check corporations — as SPACs are additionally recognized — has been on the wane not too long ago within the US and Asia amid tightening regulatory scrutiny, the Cilo Cybin transfer signifies there should still be urge for food in Africa.
Cilo Cybin’s acquisition goal is a facility in Pretoria that has the capability to provide about R150 million price of hashish and vaping merchandise a month, mentioned Theron. The plant is one among many entities in South Africa to have been given a license to domesticate or manufacture hashish merchandise.
Acquisitions of corporations that take a look at mind well being and genetics will then be thought of, he mentioned. The corporate could later try to record on the Nasdaq alternate in New York to lift additional funds.
If or when the market develops, the corporate plans to discover manufacturing choices for merchandise of psilocybin, the energetic ingredient of magic mushrooms from which the corporate takes its title.
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