gtag('config', 'UA-12595121-1'); Eco Equity is a budding medicinal cannabis cultivator – The Zimbabwe Mail

Eco Equity is a budding medicinal cannabis cultivator

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Eco Equity is developing a medicinal cannabis cultivation business in Zimbabwe, with a vertically integrated operation in Antigua.

The company, which is examining a possible dual flotation in the UK and Canada, holds a licence in Zimbabwe to export into the European Union.

Refined oil and botanical flower, both certified under EU good manufacturing practice (GMP), will both be exported to wholesalers to fulfil existing off-take agreements in the EU, as per the licence.

Zimbabwe-born chief executive Jon-Paul Doran, formerly a Citigroup financier, founded the company after moving out of the City into the cannabis industry.

Eco Equity is forecasting initial annual production of around 15,470kg of EU-GMP cannabis flower, and 1,591kg of EU-GMP oil. Wholesale establishments will be used to fulfil off-take agreements in the EU regions.

When fully operational, this is expected to generate annual revenues of around US$34-35mln based on current prices and off-take agreements.

In the UK, Guernsey-domiciled JPD Capital has been launched as the investment vehicle that funds Eco Equity and potentially other investments in the medicinal cannabis industry. This is the primary vehicle for investors.

How is it doing?

Eco Equity is working in collaboration with Verdex Group, towards becoming ‘one of predominant producers of cannabis derived CBD in Europe’.

Doran is also looking at other investment opportunities ‘identifying areas in the market where we believe our team can excel….. where we can add tremendous revenues for our investors’.

There is also teh possibi8ity of a  listing in 202 and Doran expcts a ‘prosperous’ year ahead.

What the boss says, chief executive J-P Doran

“Medicinal cannabis has proved itself to be one of the more resilient industries during the coronavirus pandemic,” said chief Jon-Paul Doran in June.

“We’ve got a tremendous team in terms of cultivation and one thing we want be renowned for is quality and consistency,” he said.

“We are also working to ensure the price per gramme stays low, as that it really is our competitive advantage.”

“We’ve firmly been concentrating on the cultivation side of things and medicinal applications and markets. But for us to move onto the next level in terms of CBD, it was essential for us to move into the retail space so we will be launching our retail brand.”

On the potential for an IPO, he said: “We have got different options, we may look at dual-listing. For now, we are talking to corporate advisers about the best strategy and we will deliver on what’s best for our investors, be that the NEX market [now the Aquis Stock Exchange], AIM or in Canada on the TSX.”