Cannabis company lists on JSE’s AltX

Estimated reading time: 2 minutes

Recently, a medical cannabis investment company called Cilo Cybin Holdings Limited listed on the Johannesburg Stock Exchange’s (JSE) AltX Board as a special purpose acquisition company (SPAC). They have ambitions for significant future expansion and growth through new acquisitions in the biotechnology and medical cannabis sectors.

“This SPAC will now acquire Cilo Cybin Pharmaceutical, which is the first entity in South Africa to obtain both medical cannabis cultivation and manufacturing licenses,” said Gabriel Theron, CEO of Cilo Cybin. The company produces and supplies Good Manufacturing Practice medical cannabis products for local and international markets.

The Cilo Cybin Pharmaceutical facility is situated in Midrand. “Once this acquisition is complete, the strategy is to transition to the JSE Main Board and subsequently pursue additional growth avenues, both organic and through further acquisitions,” said Theron.

Learn how the Private Purposes Bill pertains to cannabis here.

An investment opportunity

On 28 May 2024, President Ramaphosa signed into law the Cannabis for Private Purposes Act, 2024 (Act 7 of 2024). While there were still a few regulatory issues that needed to be addressed, Theron said this decriminalisation of cannabis would help to catapult the industry forward. “We hope that this listing will also enable all South Africans to invest in this market. Until now it has been relatively expensive to invest in the cannabis market.”

Cilo Cybin Holdings Limited has only made 10% of its total equity available, offering over 71 million ordinary shares at R1 per share.

Valdene Reddy, director of capital markets at the JSE, said this listing brings the number of JSE-listed companies to 282, with a market capitalisation exceeding R18,6 trillion.

“We are pleased to welcome Cilo Cybin to our AltX Board which is a springboard for small and medium-sized companies and catalyses their growth. With this listing, the JSE can diversify its offering, presenting investors with unique, forward-looking opportunities. The addition of Cilo Cybin to the AltX underscores our commitment to embracing sectors poised for innovation, such as medical cannabis and biotechnology.” – Susan Marais, Plaas Media

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