South Africa's Cilo Cybin on Tuesday became the first medical cannabis company to list on the Johannesburg Stock Exchange's Alternative Exchange, as it hopes to capitalise on growth in the legal marijuana industry.
South Africa in 2018 legalised marijuana for personal use and in 2019 legalised the sale of cannabidiol, a non-psychoactive compound derived from the cannabis plant.
Cilo Cybin said the global medical cannabis market is projected to grow to about $40.48-billion by 2032 from $12.6-billion in 2023.
"As the markets mature, we want to be at the forefront of taking advantage of them," Cilo Cybin CEO Gabriel Theron told Reuters.
Funds raised from the listing will help the company "tap into the growing global investor appetite for alternative medicines," he added.
The company, which was founded in 2022, focuses on acquiring businesses that are in the medical cannabis manufacturing process.
Cilo Cybin will manufacture in the Australian market where it sells cannabis oils, flowers and pharmaceutical ingredients to about 10,000 consumers every month.
The company fell short of the R50-million needed to list on the main board of the JSE in 2022.
Cilo Cybin is also aiming to list on the Nasdaq in the next three years.