LGC Capital, a Canadian investor, in partnership with AfriAg, a South African specialist agribusiness, have agreed to acquire a 60% stake in House of Hemp in a deal valued at approximately $4.1 million.
The deal forms part of LGC’s Medical Cannabis initiative, a 50/50 joint venture with AfriAg to develop a fully-regulated cannabis growing and processing industry in the southern African region for export to certified and regulated end users world-wide. AfriAg’s role is to assist LGC with securing significant agricultural land packages and processing facilities in the region to grow cannabis crops and produce, including seeds, cannabis extracted oils, dried marijuana leafs, cigarettes and vapours.
In 2010 House of Hemp became the first private company in South Africa to be awarded an exclusive permit from the Department of Agriculture and the Department of Health to legally cultivate and process hemp and cannabis products and has licences in place to import cannabis seed and products.
Since its establishment, the House of Hemp has been targeting research on all cannabis-related markets and has been appointed to coordinate commercial research on medical cannabis and is currently in the process of securing a second R&D license to grow and commercialize medicinal cannabis and medicinal cannabis products with varying Tetrahydrocannabinol and CBD content, and to operate legally in South Africa.
The company operates he only approved cannabis indoor growing site in South Africa, made up of approximately 405,000 square feet of fully equipped, temperature regulated and humidity controlled greenhouses plus the associated support infrastructure consisting of refrigerated pack houses, laboratories and offices.
“This is an important deal for LGC, that launches the Company straight into the global medical cannabis sector,” said John McMullen, LGC’s CEO. “…The House of Hemp has a long and established history of top quality R&D in the hemp and cannabis fields in South Africa and we plan to leverage this superior knowledge to use its skills to grow our medical cannabis initiative elsewhere in southern Africa and beyond.”