By Nick Hedley
South African medical cannabis company Labat Africa says it
has been in talks with the Brunei Investment Agency about a $10.3 million
Listed in both Germany and South Africa, Labat Africa says
it was approached by representatives of the sovereign wealth fund in August.
“The agency was interested in making investments into
cannabis in Africa and Southeast Asia, with substantial funds available,” Labat
said in an update to shareholders.
“The agency had already conducted a due diligence exercise
on Labat Africa prior to them engaging in discussions, and Labat Africa was
considered to be the only reputable and viable company in Africa that they
could identify as eligible for their investment,” the update said.
Labat Africa said it was seeking funding of $10.3 million
from the agency in exchange for new shares.
“If successful, the funding raised will be used to
accelerate growth across the company’s value chain in South Africa and
Labat Africa exports its medical-grade cannabis to Australian
pharmaceutical drug company PharmaCann.