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.
Antigua is a different model, with a vertically integrated model from cultivation to retail, with the latter based on the US model of wellness ‘dispensaries’ for the domestic consumer and an on-premises lounge to tap into the tourism market.
The Antigua business also holds an export licence, with the medium-term target being other islands in the Caribbean and potentially the US.
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.
