Cannabis R650 million merger results in South Africa’s first seed-to-sale offering
The merger will create the largest vertically integrated marijuana operation on the continent.
Goodleaf Company, Africa’s premium CBD wellness brand, and Highlands Investments have joined their operations in a deal worth R650 million, with an excess investment of R350 million.
“We are delighted to have successfully concluded this merger, and in doing so created Africa’s first truly seed-to-sale offering,” said Goodleaf founder and CEO Warren Schewitz.
The merger comes amid rapidly growing interest in the cannabis industry globally.
Just last month, JSE-listed Labat Africa bought a 75 percent stake in Northern Cape cannabis producer Leaf botanicals, valuing the company at R11 million.
Highlands Investments Founder Jody Aufrichtig described the new merger as a transaction that combines two of the most prominent cannabis players in Africa.
“Highlands is the first ISO 22000 grade cannabis producer in Africa. The quality of our product is world-class, and I believe that this combined offering will enable us to make significant inroads globally because we can compete for both quality and price,” said Jody.
Under the new deal, Highlands Investments shareholders will control 35 percent of shareholding while Goodleaf will retain the majority remaining shares.