Cann Global (ASX:CGB) has become the second small cap to enter the African cannabis market.

It is a market that is estimated to reach $7.1 billion by 2023 although is only legal in three countries including South Africa, Zimbabwe and Lesotho.

Cann Global will form a joint venture with a local company, Koegas Medicinal Herbs, to produce and distribute cannabis in South Africa.

The companies plan to use four locations in South Africa as cultivation sites. Land packages at the sites have access to irrigation for both indoor and outdoor growing opportunities, according to Cann.

Pic: Cann Global

“The board is confident that this newly established JV in one of the larger emerging markets for cannabis globally will be able to establish a strong foundation to generate significant revenues for CGB,” chair Pnina Feldman said.

Cann is the second company to enter the African market following Creso Pharma (ASX:CPH). Creso will sell its hemp-based cannaQIZ products into southern Africa in partnership with large pharmaceutical firm Pharma Dynamics.

Cann shares have gradually declined in recent months but climbed 15 per cent today.


African cannabis is overlooked but it’s a multi-billion dollar market


In other ASX cannabis news today:

IDT Australia (ASX:IDT) and Cann Group have now packaged the first medical cannabis product produced from Cann’s cultivation. The product will undergo stability testing and will be released soon after.

Roots Sustainable Agricultural Technologies (ASX:ROO) has joined forces with Israeli-listed cannabis producer Search Medical to investigate Roots’ technology on its cannabis crops. While this is not the first trial on its technology, this one will be during the Israeli winter (December 2019-March 2020) instead of the summer. Search Medical CEO Yogev Sarid said he regarded Roots as a highly dedicated and credible partner.

THC Global (ASX:THC) has appointed a chief operating officer for its Southport facility. Thirty-year industry veteran Angela Maguire will begin in late January 2020, bringing experience in cannabis formulation projects as well as dealing with regulators such as the FDA. THC’s Southport facility is the largest pharmaceutical bio-floral extraction facility in the Southern Hemisphere.