South African Cannabis Company Plans IPO

South African Company Cilo Cybin Pharmaceutical Ltd. is considering an initial public offering in the next 12 months (IPO). The company is the first South African company to be awarded the right to grow, process, and package cannabis products after receiving certification from the South African Health Products Regulatory Authority. This right gives the brand the ability to produce marijuana for retail globally. South Africa has awarded a total of 28 cannabis licenses. The region’s climate is amenable to growing high-quality cannabis at a low cost.

Cilo Cybin’s primary facility is based in Pretoria. The company has built a high-tech, indoor growing facility capable of producing about 100 kilograms (220 pounds) of cannabis flower a month that sells for between $2 and $4 a gram at wholesale prices. The company will also be producing cannabis oil.

Cilo Cybin plans to go public for the next 12 months, planning a dual listing with the Johannesburg Stock Exchange as the main board, and Luxembourg as a possible secondary listing. The money raised will be used to drive the company’s cannabis business forward. One of the focal points of the firm’s unique cannabis offerings is a South African cannabis cultivar called Durban Poison. The cultivar contains high levels of delta-9 tetrahydrocannabinol, or THC, the main psychoactive cannabinoid present in cannabis.

The firm has also established research and development partners at universities and institutes that will receive royalties when the products are commercialized. Cilo Cybin has additionally applied for a research permit to explore the use of psilocybin, a psychoactive alkaloid present in magic mushrooms, which has shown potential as a treatment for depression, anxiety, and PTSD.