This is after it acquired a trading license to cultivate, manufacture, supply, hold, import, export and transit cannabis in the Kingdom of Lesotho.
Knuckle genetics focuses on the production of “high-quality cannabis flower, oils and concentrates with a very high (more than 20%) THC content for the export market.”
Pac-con on the other hand manufactures and packages liquids, tablets, capsules, creams and gels”.
According in a statement by Labat to its shareholders, “Pac-con will be utilised to produce high-grade CBD oils and related cannabis products for the retail and wholesale markets.”
Labat is establishing a fully integrated cannabis business and aims to “occupy and service the entire value chain of the cannabis market”, the company said in the statement.
The two companies will therefore be very crucial in helping Labat realize its aim of participating in the entire value chain of the cannabis market.
Demand for Cannabis and its products has been on the rise particularly due to its legalization in several states in the world, the United States and Canada being the most notable ones.
Estimates from the Green Fund show that the global cannabis market is worth US$150 billion and a forecast by Barclays expects the sector to be worth US$272 billion by 2028.
Some states in the continent have however, made great strides towards legalization and licensing so that they can have a share of this lucrative market.