Labat Africa to acquire Biodata in bid to grow cannabis business
14 April 2020 - 19:47
byNtando Thukwana
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Investment holdings company Labat Africa will acquire a stake in Biodata, a technology and medical research company focused on the cannabis industry.
Labat will acquire 70% of Biodata, its latest move in strengthening its foothold in the cannabis industry, which is estimated to be worth R27bn.
Biodata, which was initially set up as a holistic healing enterprise incorporating cannabinoids, is well positioned to begin clinical trials on pain management and insomnia, Labat said.
Labat said the research conducted by Dr Shiksha Gallow, Biodata’s medical director, will be an enhancement of Labat’s nutraceutical and pharmaceutical offerings.
“The proposed acquisition of Biodata provides Labat Africa with additional medical and pharmaceutical infrastructure in support of its health-care strategy. Gallow and her team will also provide expertise and value to Labat Africa’s endeavours to developing the company’s drug master files for the selected alkaloid active ingredients,” Labat said.
While SA mulls over whether it should allow the up-scheduling of codeine-based products due to the significant abuse and the impact on health-care costs, Labat said it sees as an opportunity to invest in cannabis alkaloid based clinical trials, hence the acquisition of Biodata.
In 2019, Labat became the first listed company in Africa to venture into cannabis through the acquisition of Zarenka Group, a Lesotho-based cannabis grower and manufacturer. Labat established an fully integrated cannabis business with the objective of gaining its foothold in the cannabis market and its value chain.
Labat also bought shares in a genetic cannabis breeding and cultivating business Knuckle Genetics as well as packaging company Pac-Con, which specialises in the manufacturing and packaging of liquids, tablets, capsules, creams and gels.
Labat said the acquisition was less than 5% of its market capitalisation, which was R144.3m on Tuesday.
“Labat Africa is pleased to welcome on-board a group of leading experts in the cannabis industry who are committed to ensuring SA takes its rightful place on the world stage in the field of cannabis innovation and scientific excellence,” the company said.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Labat Africa to acquire Biodata in bid to grow cannabis business
Investment holdings company Labat Africa will acquire a stake in Biodata, a technology and medical research company focused on the cannabis industry.
Labat will acquire 70% of Biodata, its latest move in strengthening its foothold in the cannabis industry, which is estimated to be worth R27bn.
Biodata, which was initially set up as a holistic healing enterprise incorporating cannabinoids, is well positioned to begin clinical trials on pain management and insomnia, Labat said.
Labat said the research conducted by Dr Shiksha Gallow, Biodata’s medical director, will be an enhancement of Labat’s nutraceutical and pharmaceutical offerings.
“The proposed acquisition of Biodata provides Labat Africa with additional medical and pharmaceutical infrastructure in support of its health-care strategy. Gallow and her team will also provide expertise and value to Labat Africa’s endeavours to developing the company’s drug master files for the selected alkaloid active ingredients,” Labat said.
While SA mulls over whether it should allow the up-scheduling of codeine-based products due to the significant abuse and the impact on health-care costs, Labat said it sees as an opportunity to invest in cannabis alkaloid based clinical trials, hence the acquisition of Biodata.
In 2019, Labat became the first listed company in Africa to venture into cannabis through the acquisition of Zarenka Group, a Lesotho-based cannabis grower and manufacturer. Labat established an fully integrated cannabis business with the objective of gaining its foothold in the cannabis market and its value chain.
Labat also bought shares in a genetic cannabis breeding and cultivating business Knuckle Genetics as well as packaging company Pac-Con, which specialises in the manufacturing and packaging of liquids, tablets, capsules, creams and gels.
Labat said the acquisition was less than 5% of its market capitalisation, which was R144.3m on Tuesday.
“Labat Africa is pleased to welcome on-board a group of leading experts in the cannabis industry who are committed to ensuring SA takes its rightful place on the world stage in the field of cannabis innovation and scientific excellence,” the company said.
thukwanan@businesslive.co.za
Labat to buy new cannabis training business for R15m
Q&A: Labat has big plans to grow the ‘black gold’ industry
Companies in this Story
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most Read
Related Articles
Pandemic the last straw as cannabis companies slide off their high
Cannabis high on state agenda to unlock jobs and economic growth
WANDILE SIHLOBO: This is how Cyril Ramaphosa’s speech affects agriculture
Cape Town aims to ensure residents score from cannabis industry
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.