Labat to buy new cannabis training business for R15m

Investment group Labat Africa, which is venturing into the cannabis market, has agreed to buy a business that offers training and education for cannabis production for R15m, it said on Thursday.

Labat Africa will acquire a 70% interest in a business to be known as CannAfrica for a consideration of R15m, to be settled through the issue of 15-million ordinary Labat Africa shares, at an issue price of R1 per share.

The remaining 30% will be owned by Herschel Maasdorp, who will be appointed CEO of the retail division of Labat Healthcare.

The business offers education and training programmes in primary and secondary agriculture qualifications.

In September last year, Labat announced plans to become a major player in the cannabis industry.

The share price of the company, which has a market capitalisation of R167m, was unchanged at 45c on Thursday morning.