18 July
2017
AfriAg Global
PLC
(“AfriAg Global”
or the “Company”)
Medical
Cannabis Sector Update
AfriAg Global PLC, the London
listed global food and logistics group, announces that AfriAg
(Pty) Ltd (“AfriAg”), the Company’s 40% owned agri-logistics
specialist, and their joint venture partner in their southern
African medical cannabis initiative, LGC Capital (TSXV: QBA), have
signed sole and exclusive agreements to acquire a 60% interest in
South Africa’s House of Hemp.
The House of Hemp in South Africa
has a long term lease on the only certified indoor growing facility
for the possession and cultivation of the Cannabis Sativa Plant for
research purposes which includes growing, extraction and packaging,
at the Dube TradePort AgriZone, which is located within the highly
secure precinct of the Durban
International Airport.
The Greenhouse “Block D” site is currently the only approved
hemp/cannabis indoor growing site in South Africa. The site consists of approx.
37,633m² (405,000 square feet) of fully equipped, temperature
regulated and humidity controlled greenhouse under glass plus
associated support infrastructure comprising refrigerated pack
houses, laboratories and offices covering 1,760m2
(19,000 square feet).
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 (textiles/fibres,
oil/nutrition and medicinal) 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 (“THC”) and CBD content, and to
operate legally in South
Africa.
Related Party Transaction
David Lenigas serves as the Chairman of AfriAg, AfriAg Global
and LGC. Pursuant to the NEX Exchange Growth Market Rules for
Issuers, the transaction with AfriAg constitutes a related party
transaction.
The Transaction
LGC and AfriAg have jointly signed a binding agreement with the
House of Hemp in South Africa, for
the sole and exclusive right to acquire a 60% beneficial interest
in the House of Hemp and upon signing this agreement have committed
to make an initial payment of CDN $19,595 within the next two days. LGC and AfriAg
have also committed to pay an additional amount of CDN $37,000 by July
28th to House of Hemp for next month's (August 2017) general overheads, salaries and
growing facility lease payments. LGC and AfriAg will continue
paying CDN $37,000 monthly for a
period of six months to keep House of Hemp fully funded while
completing the transfer of interest documentation and to allow for
sufficient time to complete investigative studies on the most cost
efficient ways of commencing scalable production. As part of the
transaction, LGC and AfriAg have also committed to secure the
necessary CDN $4.9 million estimated
to commence large scale trial production within the Dube TradePort
Block D greenhouses as soon as development plans are finalised.
About Dube TradePort
Dube TradePort Corporation, a business entity of the KwaZulu-Natal
Provincial Government, is charged with the responsibility to
develop the province’s biggest infrastructural project. Considered
one of South Africa’s top 10 investment opportunities, this
designated Special Economic Zone (SEZ) is geared to promote foreign
and local investment.
The precinct is strategically located 30km north of the important
coastal city of Durban, in
KwaZulu-Natal, on South Africa’s eastern seaboard. This over 3,000
hectare development is home to the state-of-the-art King Shaka
International Airport and is ideally positioned 30 minutes from
Africa’s busiest cargo port, Durban Harbour, and 90 minutes from
Richards Bay Harbour. Dube TradePort takes advantage of its
prime location as the only facility in Africa combining an international airport,
dedicated cargo terminal, warehousing, offices, retail, hotels and
agriculture.
About Dube AgriZone
Dube AgriZone is Africa’s first integrated perishables supply chain
and the most technologically advanced future farming platform on
the continent.
This high-tech agricultural development, which forms part of the
Dube TradePort Special Economic Zone (SEZ), is host to the largest
climate-controlled glass-covered growing area in Africa. It aims to stimulate the growth of
KwaZulu-Natal's perishables sector and affords the opportunity to
achieve improved agricultural yields, consistent quality,
year-round production and the superior management of disease and
pests.
The facility's primary focus is on the production of short
shelf-life vegetables and other horticultural products which
require immediate post-harvest airlifting and supply to both
domestic and export markets.
The present phase one development comprises an extensive 16
hectares of greenhouses, dedicated post-harvest packhouses, a
central packing and distribution centre, a nursery and a
sophisticated plant tissue culture laboratory, Dube AgriLab.
The directors of the Company accept responsibility for the
contents of this announcement.
-ENDS-
Doriemus
Plc:
David Lenigas (Executive Chairman)
Anthony Samaha (Finance Director)
Hamish Harris
Donald Strang |
+44 (0)20 7440
0640 |
Peterhouse Corporate
Finance Limited
Guy Miller
Fungai Ndoro |
+44 (0)20 7469
0930 |