CAPE TOWN, South Africa, June 3, 2021 /PRNewswire/ -- Goodleaf Company ("Goodleaf"), the leading cannabis brand in South Africa, has merged with Highlands Investments ("Highlands"), formerly Canopy Growth Africa, in a deal valued at almost $50million. The transaction has resulted in the largest vertically integrated cannabis operation in Africa, with an investment in excess of $25million to date.
"We are delighted to conclude this merger, and in doing so create Africa's first truly seed-to-sale offering," says Warren Schewitz, Founder and CEO of Goodleaf. "It's always been our intention to create a world-class global brand, and as we scale, access to high-quality supply is essential, which Highlands affords."
"This transaction brings together two of the biggest cannabis players in Africa," says Jody Aufrichtig, Founder - Highlands Investments. "Highlands is the first ISO 22000 grade cannabis producer in Africa, the quality of our product is world-class, this combined offering will enable us to make significant inroads globally, because we can compete both on quality and price."
Goodleaf, a premium CBD brand, has commercialized a portfolio of 30 products in multiple categories, and has well established distribution lines through retail stores, online, wholesale, and coffee shops in South Africa. Goodleaf's products will soon be exported to retailers in Asia and Europe.
"Consumers are demanding quality products with a known origin," says Schewitz. "Lesotho's pristine growing environment, combined with Highlands commitment to GACP ("Good Agricultural and Collection Practices") and ISO 22000 standards, ensures access to a reliable, certified high-quality supply."
Highlands has a track record of producing premium CBD flower. In April 2021 it concluded its fourth harvest in Lesotho, the outdoor harvest yielded almost six tonnes of premium cannabis; a significant portion is destined for the European medical cannabis market. Highlands will continue to supply bulk CBD and THC flower, distillate and isolate to global medical and wellness markets.
"This is a transformational transaction for Goodleaf as we have diversified our business into a fully seed-to-sale offering, strengthening our leadership position in the South African cannabis market. It provides a low cost production base for our product range as we expand into global markets," Schewitz concludes.
Under terms of the transaction, Highlands' shareholders will have 35% shareholding in the merged entity, with Goodleaf being the majority shareholder at 65%. The merged entity will continue to trade as Goodleaf and Highlands Investments.
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