Southern Africa becomes magnet for medical marijuana investments

Canada’s largest medical marijuana corporations are ponying up tens of hundreds of thousands of dollars to get a bit of southern Africa’s burgeoning MMJ market.

Lesotho, a tiny landlocked nation within the area, goals to turn into a provider of MMJ and ancillary providers to different nations the place legal guidelines are within the works – corresponding to Ghana, South Africa, Zambia and Swaziland.

Roughly 40 million Canadian dollars ($31.1 million) has been invested in Lesotho by Canadian marijuana corporations up to now this yr.

This week, Aphria and Canopy Growth introduced further investments in southern Africa.

Canopy Growth acquired Daddy Cann Lesotho PTY, often known as Highlands, for CA$28.eight million in inventory, the corporate introduced Tuesday.

Highlands holds licenses to domesticate, manufacture, import, export and transport hashish.

Aphria will take a 50% curiosity in CannInvest Africa, a three way partnership it arrange with South Africa-based Verve Group. As a part of the deal, CannInvest Africa will purchase Verve Group’s 60% possession curiosity in Verve Dynamics, a licensed producer of medical hashish extracts in Lesotho.

The transactions collectively are valued at CA$four.1 million. Aphria and Verve Group will every personal an equal share (30%) of Verve Dynamics.

“In addition to Lesotho, a number of African countries have or are in the process of changing their legislation and regulation to introduce licenses related to medical cannabis,” Antonio Costanzo, head of worldwide improvement for Aphria International, informed Marijuana Business Daily.

“Zimbabwe was recently in the media as the second country to introduce a licensing model, and we believe other countries will follow suit shortly.”

Earlier this yr, Toronto-based Supreme Cannabis stated it deliberate to take a position CA$10 million for a 10% stake in Medigrow Lesotho.

Aphria and Canopy Growth are traded on the Toronto Stock Exchange beneath the ticker symbols APH and WEED, respectively. Supreme is traded on the TSX Venture Exchange as FIRE.

Matt Lamers could be reached at [email protected]

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