Labat Africa, the first cannabis company to be listed on the JSE, says it has agreed to buy a 70% interest in cannabis business CannAfrica for R15m.
The remaining 30% will be owned by Herschel Maasdorp, whom the parties have agreed to appoint as the CEO of the Retail Division of Labat Healthcare.
CannAfrica will offer research, training programmes and agricultural qualifications on knowledge and skills required for the production of cannabis.
The acquisition of CannAfrica is in line with Labat's plan to expand its healthcare business.
Last year, the investment group, which entered the thriving cannabis and hemp market after scoring a trading license in Lesotho, announced that it its aim was to establish itself as a fully integrated cannabis business.
Its healthcare business consists of Labat Pharmaceuticals, Labat Botanicals, Labat Intellectual Property and Labat Hemp Processing.