//LGC Capital Pulls Out Of House Of Hemp Deal

LGC Capital Pulls Out Of House Of Hemp Deal

Canadian based LGC capital has pulled out of the infamous majority shareholder deal with South African company House of Hemp. Leaving many to wonder what went wrong.

The deal with LGC and HoH trended hard over 2017 and was best known for appearing to be a move by South African officials to pull the rug right out from under the feet of local cannabis activists and canna-preneurs by selling licenses to foreign companies, as covered in our extensive range of articles.

LGC has indicated though that they may have been sold an empty promise by HoH

“The South African Government has not put in place the legislative framework for the legalization of medical cannabis in that country. Although House of Hemp is still actively seeking a full set of commercial licenses, its lack of licenses at present means that it does not meet LGC’s strict criteria for near-term production and cash-flow.

As a result, House of Hemp no longer fits with LGC’s investment objectives. LGC has a number of other investment opportunities that it believes will offer better short-term returns for its shareholders. The amounts invested by LGC in its due diligence review of House of Hemp were not material.”

John McMullen, LGC’s CEO, commented; “LGC has a number of very exciting projects that are now moving rapidly towards commercial medical cannabis production. These businesses are LGC’s prime focus.” 

Mr. McMullen continued, “With respect to terminating the House of Hemp transaction, the absence of medical cannabis legislation in South Africa unfortunately means that House of Hemp’s business is no longer one that suits LGC’s business objectives of investing in near-term cash-flowing businesses. Not every investment LGC investigates will be concluded, and if businesses do not 100% stack-up for any reason whatsoever with respect to due diligence, budgets, timing or production potential, LGC will walk away from these opportunities to focus on better suited investment opportunities around the globe that meet our strict investment criteria.”

Those of you who have been paying very close attention over the last year would do well to ask what does this all mean for The Cannabis Development Council of South Africa due to their close affiliation with HoH. Will they still be able to make good on their promises of licenses?

Bobby Greenhash comments on LGC and HoH cancellation

Bobby Greenhash comments on LGC and HoH cancellation

Prominent local activist and CDSA member Bobby Greenhash cleared the air a bit by stating, “So, here is one for all the lip flapping haters that insinuated we were lying….this is called “taking back the yard!”
We don’t need foreign influence, we are building our OWN African Model, and we will continue to help government solve the legislation issue, by formalizing the Cannabis culture and the Cannabis industry into an organised well oiled machine, that will eliminate poverty in our society. The CDCSA, and its regional affiliates are already in the process of helping government develop cluster business models, with focus on the traditional growers at this point.”

Some confusion is likely to still linger over HoH’s relevance and role in how legalization plays out in South Africa. What’s is certain though is that HoH will continue to struggle to find local support given the company’s long standing attitude of distancing itself from any legalization efforts and its inability to deliver the goods.

 

By |2018-03-26T14:05:40+00:00March 26th, 2018|Uncategorised|11 Comments

About the Author:

Full time activist and part time stoner who who spends 420% of the day living, being and breathing all things Cannabis Culture. So blaze a fat one and follow me down the dankest rabbit holes.

11 Comments

  1. Alexander Dowding 26th March 2018 at 2:04 pm - Reply

    Excellent summarisation Mr Wallace. In other words – South Africa is still miles away (perhaps years) from introducing a licensed and regulated framework for cannabis cultivation and distribution.

  2. Altyd Hemp 27th March 2018 at 9:49 am - Reply

    Hey Babba, all respect to my lady. No matter who you think you are or where you think you are going… It will all happen in God’s ? & Time. Not yours and not mine. We all make mistakes and therefore should start by thanking our lessons. My lady, has walked & taught a long hard journey ✊️ Much appreciation ??✨ Come show us what you made of BOBCATS

  3. Dr. Thandeka R. Kunene 31st March 2018 at 2:04 pm - Reply

    Yes Mr. Wallace its true LGC chose to walk away from the House of Hemp deal. Mr. John of LGC quotes their letter of termination which states LGC reason for termination as the failure of House of Hemp to secure commercial cannabis licenses on time.

    Anyone who is trying to apply for cannabis commercial licenses knows that the delay lies with the MCC stringent criterion and its tediously long bureaucratic processes.

    We accept LGC decision cos in Zulu it is said everything thing that happens was ordained to happen.

    I ask Mr. Wallace Why you never asked me as HOH CEO and owner for my opinion before publishing any of your articles about House of Hemp?

    Mr. Wallace let me point out 4 of your opinions which are factually incorrect and exposes your unfounded bias against House of Hemp withwhom you have had no interaction:

    1. Wallace says LGC may have been sold an empty promise by HoH. NOT TRUE. What empty promise? That is bothering on libel Mr Wallace.

    2. Wallace says he is certain HoH will struggle to gain local support. NOT TRUE. Why does it smell like there is a consented effort by white capital monopoly agenda not to support black cannabis entrepreneurs in South Africa?

    3. Wallace says HoH fails to deliver goods. NOT TRUE. Which goods exactly did HoH fail to deliver?

    4. Wallace says HoH distances itself from cannabis legalisation activities. NOT TRUE. Pray tell which activities must one be involed in to show Mr. Wallace that HOH is fighting daily for Cannabis to get its God given right that was violated by apartheid and collonial laws?

    Does Wallace understand the pain of being a RasTafari cannabis expert denied of indigenous and constitutional rights?

    Does Wallace understand the pressure on black cannabis entrepreneurs who have to watch white cannabis activists benefit from the cannabis industry just because the colour of their skin allowed them the competitive advantage they have in the cannabis industry right now?

    Does Wallace even understand what strategy is to be used to get the black government to give back to the black people of this county what was stolen by white collonial systems without taking away the rights of White South Africans?

    Or does Wallace believe strategies to free my people from this economic slavery will come from those nations who caused this poverty in the first place?

    Does Wallace know that for me cannabis is not a choice but a matter of life or death?

    Clearly Mr. Wallace does not know me. Those who know me will attest that I have always wished every cannabis activist well in each different campaign.

    Mr. Wallace please stop trying to pull the next cannabis activist down. It does not make your candle shine brighter. Just focus on pushing forward your campaign. Personally I also dont know you but I wish you well in your cannabis campaign.

    What is certain is that Cannabis will be free in the South.

    What I am sure of is that we will never stop fighting until the black people of South Africa share in the benefits of legal cannabis.

    Victory is certain. In our lifetime.

    • William Wallace 31st March 2018 at 8:49 pm - Reply

      Thank you for your comment. Will do my best to answer your questions:

      1. LGC’s comments reflect an expectation that there would be medical licenses accessible via HoH and that they pulled out as that was not the case. Please refer to the original article linked above and the quote provided.

      2. HoH and yourself have not participated in or supported any of the current legalization initiatives in SA, other than posting some IG selfies. You made it very clear at your HoH/CDCSA meeting last year in Soweto that you would not associate with or support these legalization efforts as it would be bad for your business. You are therefore likely to find a lack of public support in return.
      White monopoly capital didn’t appear to be a problem when you sold a large chunk of HoH to rich white men.
      Have supported Rastas, from marching side by side through Soweto to being there when Ras Gareth Prince was recently in the Constitutional Court. I agree that I have not personally experienced the daily tribulations of the Rastafaria communities or that I represent their views, as that would be an ignorant and insensitive thing to do.

      3. HoH + No actual license = LGC cancelling deal.

      4. In your comprehensive comment you failed to mention a single recent legalization effort or initiative that you have truly supported or participated in.

      Your distress regarding the LGC and HoH deal cancellation would be better directed at your rich white CDCSA colleague Bobby Greenhash. He claims that they are the reason that your deal was canceled.

      Am sorry that my opinions and that my race offend you.
      Just hope that my work speaks sufficiently for people to judge for themselves whether I’m just another white capitalist or someone who does truly give a damn about legalization.

      Highest regards
      William Wallace

  4. Dr. Thandeka R. Kunene 18th April 2018 at 6:17 am - Reply

    Happy Wednesday Mr Wallace. What is 100% true is your point number 3: LGC cancelled the deal cos House of Hemp had not yet secured commercial Cannabis licence. Im glad you clarified there is NOWHERE in your communicaton with LGC where LGC did categorically state that House of Hemp had sold LGC an empty promise.

    They LGC/AfriAg offically cited “investor fatigue due to tedious government red tape processes”. As House of Hemp We understood and we accepted LGC/AfriAg decision cos we too are exhausted by government’s slow processes that seem to be more accommodative to big Pharma that IKS entrepreneurs.

    But as black people of the South we cannot afford the luxury of giving up hope that our black government will do the right thing for our black people in our South Africa which is a majority black country. We must never give up on ourselves. We will keep on pushing until we get that commercial license. Its a matter of time. We na get weary.

    Please check your facts Mr. Journalist – House of Hemp founding shareholders never sold out to majority white capital. Even if the LGC deal would have come through House of Hemp was still to be owned 51% by black South Africans. What investigation did you do as a journalist?

    What is evident is that you Mr. Wallace dont understand our strategy around fighting to free cannabis to benefit indigenous communities of the South. Honestly I dont expect you to understand given your heritage.

    I certain don’t have to explain myself to you or give you a list what I have been doing as a cannabis activist since I was 13years old. Those I have worked with know. And those for whose benefit I am working for know.

    Its not my fault that you and your lot misunderstood what I said in that IKS meeting in Soweto. Double Check your source. Or better still email me your questions of clarity and give me a chance to tell you my side of the story before you write an investigative article that is full of inaccuracies.

    If you must know: Cannabis is my life. I was born into Cannabis culture. I will die working in Cannabis. Its my destiny.

    Its against my culture to be a barrier to anyone doing anything in cannabis. I repeat I WISH all Cannabis activists WELL. Cannabis must be free for all. The Almighty I Am created Cannabis as a tree of life for the healing of ALL nations.

    I’m glad you are 100% clear that you and your lot can NEVER speak on behalf of any RasTafari on Cannabis. I, on the other hand, am part of the all RasTafari technical team tasked with engaging government to secure RasTafari Ganja Rights and to ensure IKS communities like RasTafari and African Tribes and Traditional Healers also share in the benefits of legal Cannabis. Until my community tells me otherwise; I dismiss your comments as those made by one white journalist who is ignorant of RasTafari and IKS rights.

    I will not comment on your comment on Mr. Bobby Greenhash. I continue to work with him and other African loving activists as we seek local solutions for South African Cannabis industry.

    Contrary to your assumption that I am distressed by LGC pulling out; in retrospect I am actually releaved to have an opportunity to correct my mistake of having sold controling stake in House of Hemp (even if 21% of that 60% was to Black South Africans). Whew; God in Heaven must love me to give me such a rare chance to correct such a mistake.

    I told you before I wish you Mr Wallace well in whatever is your Cannabis campaign. I hold no hard feelings towards you Mr. Wallace. Instead I owe you gratitude and many thanks for your sinister conclusion that “What’s is certain though is that HoH will continue to struggle to find local support”. As a result of your article many white South African companies and philantropists have been calling me to first make it very clear that you Mr Wallace dont speak for them as they dont agree with your concluding statement and (most important for me) these resourced individuals are asking for options to be equity participants to replace LGC/AfriAg who freely chose to forgo their option in House of Hemp.

    So dont hold your breath, this RasTafari Cannabis Activist is not down nor out. Cant keep a good woman down. Being the Cannabis Queen of the South is my destiny ordained by Haile Sellassie I the God of all Gods.

    Aluta Continua. Victory is certain. Cannabis will benefit the majority of South African population. In my lifetime.

  5. Eugene Ceronio - Hemp4Africa 23rd April 2018 at 9:12 pm - Reply

    Being a HoH client, trying to set up a cannabis business through the only “legal” grower in SA has been nothing but a waste of time, money and effort for me. I am a white male, trying (and succeeding through other means) to support my family. I believe in the power of Cannabis (since 1995) and have first hand experience when it comes to the benefits.

    I have tried on numerous occasions and along various channels to engage Dr Kunene in a discussion about my(our) business and to satisfy all my questions – ALL to no avail. When the cops came knocking on my door, where was HoH, what did they do to help me their client – I’ll tell you, NOWHERE and NOTHING.

  6. Andre du Plessis 25th April 2018 at 9:46 pm - Reply

    Blablaaaa bla “Its against my culture to be a barrier to anyone doing anything in cannabis”

    Honey I’ve told you a million times and again now

    “Exclusive” that word you use on your website and instagram before the word “license”… by default meansEVERYONE ELSE WAS EXCLUDED

  7. […] processes,” House of Hemp owner Dr. Thandeka R. Kunene wrote in a lengthly response to coverage of the LGC pullout by South African by blogger William Wallace of thehighco.za, a frequent HoH […]

  8. Dylan 5th August 2018 at 2:36 pm - Reply

    Hello Mr Wallace and Dr. Thandeka R.Kunene

    I’d like to speak, if I may, on the behalf of the younger generation of South Africa. We stand on the precipice of what could be one of the most economically beneficial events our country has seen in a long time and we don’t seem to be doing very much to ensure we maintain control of it.

    Dr Thandeka Kunene I do not believe anyone is actually being given a chance to be part of the South African Marijuana movement. I have a friend who has been trying to acquire a growing license for over a year now and has made any progress. He has land and is conducting himself in a professional and proactive manner. I really hoped ethnicity wouldn’t have to be an issue but since it does seem important my friend is a born and raised black South African. Shouldn’t CDCSA meetings be more frequent and accessible at such a pivotal time? Wouldn’t the industry as a whole benefit from approaching tertiary institutions, de-stigmatising marijuana and encouraging and empowering the younger generation in this new industry.

    I know what you are thinking ,”What does this ‘child’ know about an industry we have devoted our lives to”, “Who does he presume himself to be judging our actions.” It’s true, I’m not an expert but I know my generation is eager and ready to be briefed on what is required from us to rocket the South African marijuana industry into a prosperous, harmonious future. We might not be a multi-billion dollar company (yet), but take a chance on the local children of democracy and we might surprise you.

    I will continue to follow the legalization journey.

  9. Rasta 15th August 2018 at 9:49 pm - Reply

    I’m a Rasta and I respect the views of William.

    Lot of it is truth about this woman who never really wanted to help us .
    Look @all the internet post and pics of how free she grow the herb while others r in struggle.

    What research r they currently doing today? ?(for the perpouse of?)
    Who is paying???

    One love

  10. CD 22nd August 2018 at 10:55 am - Reply

    Until Dept of Agriculture come up with a decent plan for regulating the growing and control harvesting there is no possible way Med Control Council can issue Licenses. All Cannabis products will have to be laboratory tested to certain GMP’s to ascertain Herbicides and Pesticides volumes before being accredited for Medicinal purposes. There are no accredited dedicated laboratories available for testing. To test for THC, CBD, CBN and other terpenes (which will be a definite requirement for medical uses) is extremely costly in a private lab which most local growers will not be able to afford. For recreational use this will not be neccessary as heat kills most of the properties required for healing.Just my 10 cents worth. CD.

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