By Tom Winnifrith | Thursday 29 June 2017
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Legalised cannabis is right up there with The Internet of Things and Blockchain Technology as "hot" stockmarket promotes right now. Anyone who wants to grab the interest of investors, especially Stateside, is getting into the pot game. Cometh the day, cometh the man... step forward Big Dave Lenigas.
Over on the NEX lobster pot sits Afriag (AFRI), a company we have covered a number of times on these pages. But Big Dave also chairs LG Capital, formerly Lenigas Cuba which is now listed on the TSX Venture market following a strange RTO. Afriag does African Agriculture while LG Capital is still trying to drum up business opportunities in Cuba. And so we now learn of a new jv. From the Canadian side we are told:
LGC Capital Ltd. has entered into a strategic alliance with AfriAg Ltd to create a new 50/50 Joint Venture to grow and distribute medical and recreational cannabis products in the southern African region for export to regulated and certified end users around the world.
AfriAg has extensive experience with managing agriculture operations including greenhouse cultivation. It also owns and manages certified facilities and is one of the largest distributers of perishable food products by airfreight to the world from the southern African region.
The new Joint Venture will aim to develop a fully-regulated cannabis growing and processing industry in the southern African region for export to certified end users world-wide. AfriAg will assist LGC with securing significant agricultural land packages and processing facilities in the region to grow cannabis crops and produce, including seeds, cannabis extracted oils, dried marijuana leafs, cigarettes and vapours.
"LGC, in conjunction with AfriAg, will now be actively pursuing this first of its kind opportunity in the southern African region, which expands LGC's focus into a truly international investment company," said John McMullen, CEO of LGC. "AfriAg is a great development partner for a venture such as this and this opportunity is unique. If successful, we will make LGC the first and only Canadian publicly-traded company to be licenced to grow and export recreational and medical cannabis on a global basis."
"AfriAg can bring a tremendous amount of growing, manufacturing and global logistics expertise to this partnership", said Paul de Robillard from AfriAg. "Southern Africa has the commercial advantage of very competitive labour rate, a highly-skilled agriculture workforce, excellent climatic conditions, and rich soils that are well suited to outdoor and indoor crop production. We look forward to working with LGC on this new venture."
Paul de Robillard where does that name ring a bell? Oh HERE.
Anyhow it all sounds like good clean fun and good luck to all concerned.
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