By Edward Tsumele
Despite its loss of Section 12 J Venture Capital Company (VCC) status as government is doing away with such companies this June, South Africa’s first cannabis fund SilverLeaf goes ahead investing in the cannabis industry.
Pierre van der Hoven the joint Chief Executive Officer of SilversLeaf confirmed in an interview with Chris Whitfield of 702 on Wednesday that although they are disappointed with the loss of the Section 12J status that would have seen especially small rural investors benefit from tax incentives his company is steaming ahead investing in the cannabis industry.
The fund has recently made its opening investment in local medical grower.
In a statement released on Wednesday, June 2, 2021, SilverLeaf said it has entered into a joint investment with Druids Holdings, a licensed medical cannabis cultivator with a growing facility near Johannesburg.
The grower is one of the first to secure a major, multi-year international supply agreement with a leading Australian pharmaceutical company, according to the statement.
“We were set up when we looked at the 12J rules and our objective was to get investment into small companies and employ people. We are disappointed that the government’s decided to end it [J12].
And there isn’t a better opportunity than cannabis! It employs people in the rural areas and can include small farmers.
They received a permit a couple of years ago. They’ve now got a full-blown medical cannabis license from Sahpra [South African Health Products Regulatory Authority] and they’ve got some accreditation from Australia…
Cannabis loves South Africa… Some very famous strains come from this area… For investors that get on the green bandwagon, they’re going to get substantial returns,” van der Hoven, revealed on the Chris Whitfield Money Show.