Medical cannabis investment company Cilo Cybin Holdings has listed on the main board of the JSE as a fully-fledged trading entity, after listing as the first cannabis special purpose acquisition vehicle in the country on the AltX in June last year.

The company has now successfully transitioned from the AltX to the main board general segment of the JSE in just 15 months.

Cilo Cybin has improved visibility to a broader investor base, which should ensure access to greater capital for growth.

The JSE’s market segmentation project, which was launched last year, involved creating distinct main board segments: prime and general, which align regulatory frameworks with issuers’ size and liquidity.

As of September 29, 31 companies have migrated to this segment of the JSE, which reflects its appeal for companies seeking to benefit from the JSE’s more flexible and supporting regulatory environment.

The general segment of the main board promotes the growth of companies by providing enabling capital raising measures, significant cost savings, efficient and cost-effective financial reporting and greater flexibility for boards to manage the business. 

JSE primary markets head Maurice Madiba comments that Cilo Cybin’s transition from the AltX to the main board in just over a year highlights the market segmentation project’s success in providing a clear pathway for companies to grow and advance their market position.

He adds that this framework supports the needs of companies of differing sizes and liquidity levels, enabling them to raise capital and undertake corporate actions with an appropriate and relevant regulatory framework while maintaining investor confidence in the market.

“It is inspiring to see companies mature on the exchange to a point where they outgrow the AltX capabilities and qualify to transition to the JSE main board.

“We remain committed to creating an enabling environment for listed companies and supporting them in line with their increased size and operations, while ensuring they remain competitive in an emerging sector that is poised for growth globally,” Madiba states.

As part of Cilo Cybin’s classification in the general segment, the company can now apply an automatic yearly rolling general authority to issue shares for cash, representing up to 10% of its issued share capital, without requiring shareholder approval.

The company also has leniency to prepare yearly reports within four months, instead of three months.

Cilo Cybin invests in biotech, biohacking and pharmaceutical businesses in the medical cannabis market. It is the only entity in South Africa that is fully vertically integrated to have both medical cannabis cultivation and manufacturing licences.

The company cultivates medical-grade cannabis flowers for export at a facility in Midrand, and offers contract manufacturing and packaging services to the cannabis industry in South Africa and internationally.

CEO Gabriel Theron lauds his team for having managed to build a debt-free and profitable company, with the focus now turning to increased manufacturing capabilities, more international accreditations, clinical trials and a secondary listing on the Nasdaq in due course.