ICC welcomes South African cannabis legalization

ICC International Cannabis Corp (CSE:KBB) said Thursday it welcomes South Africa’s recent ruling legalizing the consumption of cannabis.

On September 18, South Africa’s Constitutional Court unanimously voted to legalize adult cannabis consumption, as well as the cultivation of cannabis for private consumption. South Africa’s Parliament is expected to amend the laws that criminalize cannabis following the Constitutional Court’s ruling in the coming months.

The company said it has agreements in place to provide cannabis products to over 2,800 independent and corporate pharmacies across South Africa and also said its distribution network is complemented by the company’s licences for medical cannabis cultivation, manufacturing, distribution, transport, research and import/export in the Kingdom of Lesotho.

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“ICC applauds South Africa’s progressive decision to legalize adult cannabis consumption and private cultivation. The company is well positioned to capitalize on South Africa’s maturing cannabis regulations, through its South African distribution infrastructure and Lesotho based cultivation and export licences,” said Eugene Beukman, chief executive officer and director of ICC.

The company recently announced its engagement of leading Lesotho-based infrastructure and development consultancy firm; Volare to assist with local development efforts. In 2017, Lesotho became the first African Nation to issue licenses for medical Cannabis operations.

The Kingdom of Lesotho is an enclave of South Africa and will act as a cultivation and production hub for ICC’s 2,800 South African pharmacies. Both South Africa and Lesotho are members of the South African Customs Union (SACU), which aims to maintain the free interchange of goods between member countries. Lesotho has also signed numerous international trade agreements permitting the unencumbered export of cannabis products to various jurisdictions worldwide.

It is anticipated that Lesotho will act as a staging ground for access to larger African markets including its neighbour South Africa and its population of over 55 million. Lesotho is a favourable jurisdiction for cannabis cultivation due to its rich soils, ideal climate, skilled agricultural workforce, low-cost labour, and access to key infrastructure.

Shares of ICC were at C$0.54 on Thursday. 

Story by ProactiveInvestors