WUHAN GENERAL GROUP, INC. a bioceutical company focused on alternative plant-based cannabinoids and psilocybin medical research is pleased to announce, that effective July 16th, 2020, it has signed a Memorandum of Agreement to pursue the Acquisition (the “Transaction”) of Tsime Pharmaceuticals and Medicinal Supplies (Pty) Ltd (“Tsime”). Tsime will become a subsidiary of MJ Medtech. 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.
Located in the Kingdom of Lesotho in Southern 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 or 80 acres.
The acquisition is extremely strategic for Wuhan. Having its own cultivation, extraction and processing medicinal cannabis operation, is key to driving research and the manufacturing of CBD by-products.
Lesotho offers remarkable advantages:
- Climate: Lesotho has ideal climate conditions for cannabis plant cultivation.
- Groundwater availability and soil quality: Excellent economic growing conditions.
- Abundant land: Mountainous hectares allows for large, open-air crops.
- Elevation and protection: Average elevation of Lesotho is 2255 meters or 7,090 feet.
- Labour: Low cost experienced growers and readily available local workforce.
- Government: Pro cannabis with a low regulatory burden.
Willem Jonker, speaking on behalf of the Medigrow Africa Group, said: ” 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. The world will be impressed by the results. ”
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“Cannabis cultivation was off our radar and low on the priority list until recently. 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! ” said Jeff Robinson, Chief Executive Officer of Wuhan General Group.
A summary of the transaction and timeline for production ramp-up will be made available after the closing of the Transaction.
Source: Biospace
