CAPE TOWN, South Africa—Wuhan General Group, Inc., a bioceutical company focused on alternative plant-based cannabinoids and psilocybin medical research, has announced that the company has signed a Memorandum of Agreement to pursue acquisition of Tsime Pharmaceuticals and Medicinal Supplies (Pty) Ltd. Tsime Pharmaceuticals will become a subsidiary of MJ Medtech, Inc.
“M2Bio Sciences already sources top-quality coffee from Tanzania, and will now be able to control the production of top-quality cannabis from Lesotho for their product range,” noted Willem Jonker, speaking on behalf of Medigrow Africa Group. “The world will be impressed by the results.”
Located in the Kingdom of Lesotho in South Africa, Tsime has the license for the cultivation of 3 hectares of medicinal-grade cannabis on a farm with a land area covering 32 hectares (80 acres). The Tsime license grants the ability to cultivate, extract and process medicinal cannabis and sell the commodity for medicinal, scientific and any other legal purpose. The transaction is anticipated to close within 90 days.
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Read MoreThe acquisition is extremely strategic for Wuhan — the company believes that having its own cultivation, extraction and processing medicinal cannabis operation is key to driving research and the manufacturing of CBD byproducts.
Lesotho offers remarkable advantages:
- Ideal climate conditions for cannabis plant cultivation
- Groundwater availability and soil quality
- Mountainous hectares allows for large, open-air crops
- Low cost experienced growers and readily available local workforce
- The government is pro-cannabis, with a low regulatory burden.
“Cannabis cultivation was off our radar and low on the priority list until recently,” said Jeff Robinson, chief executive officer of Wuhan General Group. “The big and much-needed shakeout in the cannabis sector has offered up tremendous opportunities for Wuhan and its shareholders. As many companies have been forced to leave the battlefield badly wounded, some mortally, we enter the arena unscathed and at a fraction of the costs.”
“We plan to expand our relationship considerably in the coming months with Willem and Medigrow Africa. Furthermore, we are very proud to contribute to the economic development of Lesotho through this Transaction. The grass is greener in Africa!” Robinson adds.
