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Labat risks losing listing on JSE

Alistair Anderson andersona@businesslive.co.za

Labat Africa, the industrial investment company that is positioning itself for opportunities in the cannabis industry, is at risk of losing its listing. The JSE announced on Thursday that Labat had failed to submit financial statements for the six months to end-February.

Labat Africa, the industrial investment company that is positioning itself for opportunities in the cannabis industry, is at risk of losing its listing on the JSE.

The JSE announced on Thursday that Labat had failed to submit financial statements for the six months to end-February and that it could soon be punished for not meeting JSE listings requirements.

“The JSE wishes to advise that the above-mentioned company has failed to submit its interim report within the threemonth period stipulated in the JSE’s listings requirements,” it said.

Accordingly, Labat ’ s listing on the JSE trading system has been annotated with a “RE” to indicate that it has failed to submit its interim report timeously, and that the listing of this company’s securities is under threat of suspension and possible removal.

“If the above-mentioned company still fails to submit its interim report on or before June 30 2021, then its listing may be suspended. This announcement has been placed by the JSE in the interest of shareholders,” the JSE said.

Labat spokesperson Firdous Osman said Labat was finalising the audit of its fuel energy business, Force Fuel, which was placed into business rescue in May 2020, after sales volumes declined significantly because of the Covid-19 hard lockdown.

Labat wanted to move out of the fuel business, which was impaired by almost R50m in December 2019.

“This is part of a plan that was submitted to CIPC (Companies and Intellectual Property Commission) yesterday to remove their qualification with the deconsolidation of Force Fuel in 2020. Hence the delay with the interim financial submission. However, the submission will be made before 30 June,” Osman said.

Labat is eyeing opportunities in the growing cannabis industry. It acquired 70% of Durbanbased cannabidiol (CBD) products group Cannafrica in 2020 and 75% of Northern Capebased cannabis cultivation company Leaf Botanicals in May.

Osman is head of brand at Cannafrica and a managing partner at advertising group, Saatchi & Saatchi SA.

CBD is a phytocannabinoid discovered in 1940. It is one of 113 identified cannabinoids in cannabis plants, along with tetrahydrocannabinol, or THC, and accounts for up to 40% of the plant’s extract.

“The acquisition brings to Labat an accredited, reliable and credible producer of highquality medicinal cannabis, resulting in Labat being active in the most significant parts of the cannabis value chain, from flower to customer, thereby ensuring that quality is a priority in every part of that chain,” Labat said in a statement in May.

CEO Brian van Rooyen has said that CBD products offer an array of health benefits including the alleviation of symptoms faced by patients with metastatic cancer.

The SA cannabis industry is estimated to be as large as R27bn and the global CBD market size is expected to reach $13.4bn by 2028.

Labat’s share price fell 12.5% to R0.35 on Thursday, down 20.5% in the year to date.

IF THE COMPANY STILL FAILS TO SUBMIT ITS INTERIM REPORT ON OR BEFORE JUNE 30 2021, THEN ITS LISTING MAY BE SUSPENDED

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2021-06-18T07:00:00.0000000Z

2021-06-18T07:00:00.0000000Z

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