LABAT AFRICA LIMITED - Announcement Relating to the Private Placement of Shares to Selected European Investors to Raise 18 Million Euros

Announcement Relating to the Private Placement of Shares to Selected European Investors to Raise 18 Million Euros

LABAT AFRICA LIMITED
Incorporated in the Republic of South Africa
(Registration number 1986/001616/06)
JSE code: LAB ISIN: ZAE000018354
(“Labat Africa” or “the Company” or “the Group”)
FSE Code: LEI 9845000R73DF5EE41J88

ANNOUNCEMENT RELATING TO THE PRIVATE PLACEMENT OF SHARES TO SELECTED EUROPEAN
INVESTORS TO RAISE 18 MILLION EUROS


Shareholders are referred to the announcement released on SENS dated 6 December 2021.

JSE listed Cannabis group, Labat Africa announced that its application to list Labat Africa shares
(Equity) on the Frankfurt Stock Exchange (“FSE”) via a dual listing, had been approved by the
Deutsche Börse in an official announcement on Friday, 3 December 2021.The shares were
admitted to trading, without restriction, when the market opened on Monday, 6 December
2021.

An Information Memorandum (“IM”) has been issued by Labat Africa to facilitate a private
placement of Labat Africa Ordinary Shares (the “Private Placement”) with European Investors
(“International Equity Investors”) to secure new capital of €18 million. A roadshow will be
conducted to identify prospective investors.

The capital raise comes off a spate of activity by Labat Africa as it continues to expand its
influence across the value chains in the cannabis and hemp industries. “We look to be involved
in almost every part of the cannabis value chain, from genetics to retail/dispensary,” says Brian
Van Rooyen, Labat Africa’s Group CEO. Labat Africa recently acquired 80% of Lima Romeo Air
(Pty) Limited (trading as Sweetwaters Aquaponics), a fully operational medicinal cannabis
cultivation facility in Kenton-on-Sea in the Eastern Cape that is approved by the South African
Health Products Regulatory Authority (“SAHPRA”) and which now completes the cannabis value
chain for the group.

Labat Africa’s Cannabis journey thus far since 2019:
•  2019 announced as the JSE’s pioneer and first mover into the emerging cannabis economy;
   accompanied by the acquisition of The Highly Creative (Pty) Limited “(THC”);
•  70% acquisition of CBD Retail Brand CannAfrica (Pty) Limited, with outlets being opened
   nationally, to add to its Johannesburg and Hartebeespoort presence;
•  100% acquisition of USA Miami-based CBD lifestyle brand Echo Life (Pty) Limited;
•  100% acquisition of African Cannabis Enterprises ((Pty) Limited (“ACE”), a cannabis genetics,
   seed, breeding and consultancy company;
•  Obtaining the rights to distribute American pre-rolled hemp smokable brand, Ace & Axle, for
   the African continent for 10 years;
•  70% acquisition of Bio-Data (Pty) Limited, a Cannabis and medical research company;
•  80% acquisition of Sweetwaters Aquaponics, a fully SAHPRA licenced cultivation facility,
   exporting to the global pharmaceutical market;
•  Establishing the ACE Genetics Nursery for the African Cannabis Genome & Landrace Project
•  Listing on the Frankfurt Stock Exchange in December 2021; and
•  Establishing international joint venture partnerships for the purposes of large scale Industrial
   Hemp Processing with a secure off-take framework for raw materials.

The placement proceeds will have a dual purpose of being used to accelerate the
implementation and expansion of the Labat Healthcare projects and will also create the much
needed liquidity of the Labat Africa share in the International Equity markets.

Circular to shareholders
A circular to shareholders is being prepared to approve a Specific Authority to issue shares for
cash as well as the issue of 30 million warrants to GR Global Ventures LLC at a price of R0.50
(Fifty) cents per share. A further announcement will be made in due course.

Johannesburg
5 May 2022

Sponsor
AcaciaCap Advisors Proprietary Limited

Date: 05-05-2022 03:55:00
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