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Be the first with the news that moves the market- Cann Global (CGB) has entered into a Heads of Agreement with the South African company, Koegas Medicinal Herbs
- The agreement intends to establish a joint venture to produce and distribute medicinal cannabis in Africa
- Cann considers Africa to be a potentially huge emerging market
- Cann Global is up 7.69 per cent on the market this morning, trading at 1.4¢ apiece
Cann Global (CGB) has entered into a Heads of Agreement with the South African company, Koegas Medicinal Herbs.
The agreement intends to establish a joint venture (JV), in which Cann Global will hold 70 per cent, to produce and distribute medicinal cannabis in Africa.
The new JV company will be called Cann Global South Africa and aims to have four locations in South Africa to grow the plant.
Products produced and developed at the locations will be sold to the South African and global markets.
“The Board consider Africa to be a potentially huge emerging market and is considered of strategic importance to establish a base in Africa for distribution of CGB’s existing and future products and with the goal of producing and distributing locally in Africa as well,” the company told the market.
Cann Global will need to receive four manufacture licenses (one for each location) from the Medicines Control Council.
“This new JV adds significantly to the existing established global network of CGB in Australia, Asia, North America and Israel in accessing the emerging African markets as well,” it added.
Cann Global is up 7.69 per cent on the market this morning, trading at 1.4¢ apiece at 11:52 am AEDT.
