What’s the current scenario and latest news about Medical Cannabis in South Africa?
Although medical cannabis is its newest and largest focus, House of Hemp started as an importer and reseller of hemp products, which remains a key element of its business: hempseed oil, hemp protein powder and de-hulled seeds.
House of Hemp is now a member of the National Hemp Foundation (NHF) and has served as the convener of the NHF’s Human Resource Development Group (in the first phase). House of Hemp is currently the coordinator of the NHF’s Private Sector Working Group.
Licensed in 2010, House of Hemp became the first private company to be awarded an exclusive permit from the Departments of Agriculture and Health to legally cultivate and process hemp in South Africa. Because House of Hemp wanted to reliably expand into the budding industrial market, the company sought an exclusive permit from the Departments of Agriculture and Health to not only import hemp, but also to legally cultivate and process it in South Africa. In 2010, the House of Hemp became the first private company to be awarded such a permit.
As well as supplying hemp fibres and oils, the House of Hemp conducts research and supplies by-products like tow, biomass, dust and seedcake. These have enormous promise, as sustainable replacement materials for a variety of industries globally.
In 2015, House of Hemp partnered with the South African Department of Agriculture & Health. Other key Partnerships established in the same year include the University of the Free State, the Council of Scientific and Industrial Research (CSIR), the Agricultural Research Institute (ARC); the National Agriculture Marketing Council (NAMC); it is owing to these key partnerships that House of Hemp was able to begin conducting research into medical cannabis.
About LGC Capital
LGC Capital Ltd. is a Canadian incorporated public company listed on the TSX Venture Exchange (TSXV: QBA). LGC Capital’s objective is to become a diversified business group with core business divisions that provide shareholders with exposure to a diverse range of businesses, products and services, many of which have some exposure to high growth Cuban business opportunities and some that have no exposure to Cuba at all. LGC Capital now plans to enter into the agricultural space in southern Africa through its new joint venture with AfriAg.
AfriAg (Pty) Ltd is a global agriculture and agri-logistics specialist, and provides crop growing and logistics solutions, food marketing and bespoke distribution services, by road, air and sea, to many major food retailing and wholesale corporations around the world. AfriAg (Pty) Ltd is 40% owned by London listed AfriAg Global PLC.
The first 1 of 3 payments for the 60% share in House of Hemp has now been paid over.
Reasoning for the investment firm wanting to make 3 payments may be to limit loss of investment due to non-performance etc. and in case House of Hemp doesn’t secure a licence or to receive tax benefits?
If you visit the Dube TradePort website and look at the aerial photos you will notice that the security is poor and it wouldn’t be surprising if this venture was robbed before the second grow cycle was even complete.
Even the DubeTradeport website at this moment in time mentions nothing in the news section regarding this major and exciting development.
Although House of Hemp has revamped its three page website to include its recent announcement and venture into Medical Cannabis and Cannabis Oil in South Africa there has been absolutely no official statement or recognition from the Medicines Control Council, The Department of Health or the South African Government about ANY Medical Cannabis licences having been issued so far.
The Medicines Control Council’s 2017 Guidelines and Framework for cultivation of Medical Cannabis in South Africa called for public comment to be submitted by the 31 March 2017.
You can view those guidelines by clicking here.
So far there is no licencing procedure which has been made public.
No indication of what a licence will cost?
Nor any indication of what quantity of Cannabis or Hemp in South Africa a licence holder can cultivate.
House of Hemp may be way out of its depth here and it should stick to Hemp aka Cannabis Sativa L and not even attempt to grow what they clearly don’t understand. The fact that Dr Thandeka Kunene of the House of Hemp was meant to represent the Indigenous Knowledge Systems and South Africans yet sold 60% of the company to a foreign investment company speaks volumes.
Do you think that the House of Hemp will perform and meet the criteria as laid out by the MCC seeing as they have already rejected the Medicines Control Council’s 2017 Guidelines and Framework for cultivation of Medical Cannabis in South Africa?
One is left to wonder if they do in fact possess a licence to grow Cannabis in South Africa as despite the judgement on the 31/03/2017 in the Cape Town High Court Cannabis is still remains illegal.