Cilo Cybin, a South African medical cannabis company, made history on Tuesday by becoming the first to list on the Johannesburg Stock Exchange’s Alternative Exchange.
The move aims to capitalize on the burgeoning legal marijuana industry in South Africa, which legalized personal marijuana use in 2018 and cannabidiol (CBD) sales in 2019.
Cilo Cybin expects the global medical cannabis market to reach about $40.48 billion by 2032, up from $12.6 billion in 2023.
Cilo Cybin CEO Gabriel Theron told Reuters, “As the markets mature, we want to be at the forefront of taking advantage of them.”
He added that funds raised from the listing will enable the company to “capitalize on the growing global investor interest in alternative medicines.”
Founded in 2022, the company focuses on acquiring businesses involved in the medical cannabis manufacturing process.
Cilo Cybin operates in the Australian market, where it sells cannabis oils, flowers, and pharmaceutical ingredients to approximately 10,000 consumers each month.
In 2022, the company did not reach its target of 50 million rand ($2.75 million) required to list on the main board of the JSE.
Cilo Cybin is now setting its sights on a listing on the Nasdaq within the next three years. Initially offered at 1 rand per share, its shares were trading at 6 rand by 1339 GMT (1539 local time).
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