Cilo Cybin lists on JSE’s Altx Board

Cilo Cybin Holdings, a medical cannabis investment group, marked a significant milestone by debuting on the JSE Altx Board as a Special Purpose Acquisition Vehicle. Originally slated for a 2022 listing, the company decided to release only 10 per cent of its total equity, offering over 71 million ordinary shares at R1 per share, valuing the group at R70 million. CEO and Founder Gabriel Theron discussed the venture on CNBC Africa, shedding light on the company's future plans and strategic partnerships. With 81% of the SPAC held offshore by a Malaysian backer, Cilo Cybin is gearing up to list on the Nasdaq under the name Alps Global. Theron highlighted the support and mentorship provided by their funders and outlined the roadmap for the business moving forward. Theron emphasized the primary focus of merging the two companies under the Cilo Cybin umbrella and driving profitability. He revealed that the target entity had transitioned into a profitable venture by the end of the previous year, showcasing a consistent increase in profits month-on-month in the current fiscal year. Post-merger, pending shareholder approval, Cilo Cybin aims to become a debt-free, cash-rich entity, positioning itself as one of the few cannabis companies worldwide with such financial strength. The company's expansion plans target making it one of the largest players in Africa's cannabis market. The conversation delved into Cilo Cybin's customer base, with Theron citing their primary market as Australia, where the company exports its products. As Australia witnesses a steady rise in cannabis patients, Cilo Cybin identifies it as a lucrative market with ample growth opportunities. In addition to Australia, the company is eyeing the European market, with plans to expand its supply chain to countries like Italy and Germany in the near future. Theron also addressed the logistical challenges of exporting cannabis products, noting the lengthy lead times involved in obtaining import and export permits. While acknowledging the regulatory complexities surrounding cannabis trade, especially internationally, he expressed confidence in overcoming these hurdles through experience and process optimization. Regarding the legal landscape in South Africa, Theron provided insights into the ongoing decriminalization process and the subsequent need for a comprehensive regulatory framework for cannabis trade. He stressed the importance of governmental support in creating a conducive environment for legal cannabis entities and retail operations within the country. The discussion touched upon Cilo Cybin's strategic initiatives post-listing, including potential acquisitions and product expansions. Theron revealed plans to venture into the psychedelics market, highlighting the company's application for a psychedelics license and discussions with regulators on navigating this nascent industry. As Cilo Cybin gears up to explore new horizons beyond cannabis, the future looks promising for the group. In conclusion, Cilo Cybin's listing on the JSE Altx Board signifies a significant step in the company's growth trajectory, positioning it as a key player in the evolving landscape of medical cannabis investment. With strategic partnerships, a focus on profitability, and a vision for expansion, Cilo Cybin is poised to make its mark in the cannabis and psychedelics markets, shaping the future of the industry.