To view the PDF file, sign up for a MySharenet subscription.

LABAT AFRICA LIMITED - Voluntary ann re the Acq of 70% interest in BioData & update on Pac-Con & CannAfrica

Release Date: 14/04/2020 15:31
Code(s): LAB     PDF:  
 
Wrap Text
Voluntary ann re the Acq of 70% interest in BioData & update on Pac-Con & CannAfrica

LABAT AFRICA LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1986/001616/06)
(“Labat Africa” or “the Company”)
ISIN Code: ZAE 000018354 Share code: LAB

VOLUNTARY ANNOUNCEMENT RELATING TO THE ACQUISITION OF A 70% INTEREST IN LEADING
SCIENCE, TECHNOLOGY AND RESEARCH GROUP BIODATA PROPRIETARY LIMITED (“BioData”) AND
UPDATE ON THE ACQUSITIONS OF PAC-CON PHARMACEUTICALS (“Pac-Con”) AND CANNAFRICA
PROPRIETARY LIMITED (“CannAfrica”)

Acquisition of 70% of BioData (“Acquisition”)
Shareholders are advised that Labat Africa has, in conjunction with its re-positioning strategy,
entered into an agreement with Dr Shiksha Gallow for the acquisition of 70% in BioData, a Science,
Technology, and Medical Research and Development company. The company is focused on the
cannabis industry and was initially set up as a holistic healing enterprise incorporating Cannabinoid
healing. The company is currently well positioned to commence with formalised Clinical Trials
focused on Pain Management and Insomnia. Labat Africa will acquire a 70% stake in BioData with
effect from 1 May 2020.

1)   Rationale for the Acquisition
     BioData is based in East London and headed up by Dr Shiksha Gallow. Dr Gallow is registered
     with the Health Professions Council of South Africa (“HPCSA”) in Clinical Pathology as a
     Medical Scientist and holds various degrees in Public Health Medicines as well as in business.
     The company is supported by a team of researchers, doctors and scientists both locally and
     abroad who will be working with local Academic Institutions to further Dr Gallow’s Clinical
     Investigations.

     Labat Africa is pleased to welcome on-board a group of leading experts in the cannabis
     industry who are committed to ensuring South Africa takes its rightful place on the world stage
     in the field of Cannabis innovation and scientific excellence. Dr Gallow has vast experience
     and will assist with ensuring that the Labat Africa facilities retain its accreditation, certification
     and complies with the regulatory requirements, quality standards as well as legislation.
     Dr Gallow’s knowledge and involvement extends into the areas of ISO17025 and 15189
     standards, British Qualogy Good Clinical Laboratory Practice (“GCLP”), FHI DAIDS (“Division of
     AIDS”), Occupational Health and Safety as well as FDA (“Food and Drug Administration”)
     inspections.

     The research conducted by Dr Gallow on Cannabinoids, Ayurvedic medicine as well as
     Homeopathic medicines will be a significant enhancement to Labat Africa’s nutraceutical
     and pharmaceutical offerings. With the growing international trend of opiate addiction and
     its impact on overdoses, ill-health and crime, countries world-wide are searching desperately
     for safer alternatives to treat severe and mild pain. South Africa is currently deciding if they
     should up-schedule Codeine based products due to the significant abuse and the impact on
     healthcare costs. Labat Africa will certainly use this opportunity to invest in Cannabis Alkaloid
     based clinical trials, hence this acquisition.
     The proposed acquisition of BioData provides Labat Africa with additional Medical and
     Pharmaceutical infrastructure in support of its Healthcare Strategy. Dr Gallow and her team
     will also provide expertise and value to Labat Africa’s endeavours to developing the
     Company’s Drug Master Files for the selected Alkaloid Active Ingredients.

2)   Funding
     The acquisition of the business will be financed by way of the issue of shares in Labat Africa.

3)   Suspensive conditions
     The Acquisition is subject to the fulfilment of the following suspensive conditions:

     -    The parties executing the shareholders agreement;
     -    Labat Africa advising the sellers, in writing, that it is satisfied with the outcome of the
          required due diligence investigation;
     -    The Board providing a certified extract of the Board resolution approving the Acquisition;
          and
     -    The approval in connection with the admission to listing of the Labat Africa shares on
          the JSE, issued as payment of the Purchase Price.

4)   Classification of the transaction
     The Acquisition is less than 5% of the market capitalisation of Labat Africa and accordingly
     this announcement is voluntary in nature and additional information required for a Category 2
     announcement is not required to be published The seller is not a related party to Labat Africa.

Update on the voluntary announcement relating to the CannAfrica acquisitions
Shareholders are advised that all the conditions precedent for the CannAfrica acquisition have
been met.

Johannesburg
14 April 2020

Sponsor
Arbor Capital Sponsors Proprietary Limited

Date: 14-04-2020 03:31:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.

Email this JSE Sens Item to a Friend.

Share This Story