Canadian TSX Venture Exchange-traded company LGC Capital is partnering with AfriAg, a Johannesburg-based agricultural specialist, to create a new cannabis division for the two companies.
The purpose of this strategic alliance is to grow medical and adult-use marijuana crops in South Africa for export to countries around the world that have legalized the plant.
AfriAg is one of the largest South African-based worldwide distributors of perishable food products by air freight. The company also manages extensive agricultural operations including greenhouse cultivation.
In a press release, the partners said that “the new joint venture will aim to develop a fully-regulated cannabis growing in processing industry in the southern African region.” The two companies plan on exporting seeds, extracted oils, dried marijuana, and other products.
“AfriAg is a great development partner for a venture such as this,” said LGC CEO John McMullen. “If successful, we will make LGC the first and only Canadian publicly-traded company to be licensed to grow and export recreational and medical cannabis on a global basis.”
LGC Capital marks another publicly traded company from Canada entering the global cannabis business, in a country with an already flourishing cannabis cultivation landscape.