South African Producer To List On Johannesburg Stock Exchange
In a first of its kind, a Gauteng based cannabis producer has listed on the Johannesburg Stock Exchange (JSE)
Tuesday October 12 last week was a red-letter day of sorts for the South African cannabis industry (not to mention the regional discussion beyond that plus destination markets). Cilo Cybin Pharmaceutical, based in Gauteng, listed on the JSE.
Partnered with the Vaal University of Technology, the company has received massive interest from investors so far. Product validations are on target for the South African summer season.
The Africans Are Coming
The cannabis industry in the southern tip of Africa is certainly starting to come into its own. The first GMP cannabis has now shipped to Germany (from several firms) and at prices that are making everyone impressed (along with high quality). This includes cannabis from Lesotho as well as South Africa. But there are others lining up to follow (see Zimbabwe).
Cannabis from Africa is starting to make a splash, in other words, in many places in Europe (and not just Germany). With prices that make exports even to low-income European countries feasible, cannabis production from this part of the world is on track to have a major impact in the highly competitive medical market across the EU and in the UK.
In turn, this will also begin to make a serious dent on pricing, which has started to go down, but not by much. News, however, of 100 euro a gram cannabis sold wholesale to any European country is not likely to surface again as a result.
The Growing German Medical Market
While patient counts are still hard to nail down for sure, the German cannabis market continues to grow. The latest estimates are that there are 130,000 German patients right now – and of course, as most in the industry know, this is only going to increase.
Beyond this, there is a general interest in medical cannabis now that the Covid Pandemic is at the stage where it is. This includes scientific inquiry (and by some of the best-known names in the industry like Rafael Mechoulam) about the impact of cannabis on Covid.
Bottom line? You are likely to see some African-grown cannabis in a pharmacy near you – and as recreational markets open in Europe, no doubt some intriguing brands that are off the charts in terms of taste and stability.
African Queen cannabis anyone? The journey is just beginning.
Stay tuned for more regional and international cannabis updates.