South African medicinal cannabis firm Cilo Cybin Holdings (Cilo) has said its planned listing on a local bourse on June 25 will be the first step in its longer-term intention to list on the Nasdaq. 

After joining the AltX, which seeks to offer access to capital and growth opportunities to small and medium-scale, high-growth firms, Cilo founder and chief executive, Gabriel Theron hopes to join the Johannesburg Stock Exchange (JSE) by December 2024 and the US bourse within three years.

The medicinal cannabis exporter will join the AltX as a special purpose acquisition vehicle (SPAC) with a “small” market capitalisation of only $3.8mn which some people may laugh at, News24 wrote on June 18.

However, Theron added, the bigger picture is about growth opportunities that come with a public listing.  Thereafter it will work towards graduating to the main local exchange, the JSE and then look to acquisitions of other branded products and distribution businesses, both locally and offshore.  

Soon after joining the AltX, Cilo targets to acquire its first target asset the the business Cilo Cybin Pharmaceutical and its 2,500-metre facility in South Africa.  The pharmaceutical firm’s shares are held by Theron and Jessica Moodley-Theron, Tham Seng Kong, CEO of Malaysian biotechnology research and medical company ALPS, and some private investors.

While the group could acquire other cannabis distribution businesses, it would add any asset that could assist it in driving efficiencies in its value chain.

Theron said: “It could be specific niche manufacturing sites, or it could be distribution (channels) or brands for that matter. It could be anything that helps us in our bouquet of services or companies.”