Another Cape Town-based business is entering the lucrative research-driven medicinal cannabis production market, by building a modern cannabis facility in the heart of the Cape Winelands.
Neo Pharm (Pty) Ltd has began phase one of its plan to run a new state-of-the-art cannabis production facility that will be based in Franschhoek, which is the development of the building.
“The main purpose of the facility will primarily be the production of the highest quality indoor grown, pharmaceutical grade cannabis for conversion into medicinal cannabis oil for export and on the research and development of novel cannabinoid-based treatments for chronic pain as well as several central nervous system disorders, including, fibromyalgia and irritable bowel syndrome,” says a Neo Pharm spokesperson.
The local company is currently in the process of securing the needed approvals from the South African Health Products Regulatory Authority and the National Department of Health in order to commence production.
“I think it goes without saying that the creation of new jobs in the Western Cape is of primary importance for all stakeholders. By the end of 202O we would have created 80 full time positions. Aside from this it will allow our business to expand on the community upliftment initiatives we currently fund and support. Currently we are the major funders of two Cape based orphanages looking after the welfare of 110 vulnerable children and also operate a feeding scheme for displaced individuals in the city and surrounds. We have included developing a dedicated training facility for young adults which will give them the necessary certifications and skills to enter the cannabis industry, ” says Neo Pharm.
An estimated R60-million investment in capital expenditure will come with the construction of the building as stage one commences, and an additional R80-million will be invested upon the commencement of phase two, which will take place in 18 months’ time.
“Apart from the afore-mentioned, we are really looking forward to showing the world that the Cape, as well as South Africa as a whole can be innovative leaders in this competitive industry,” says Neo Pharm.
The decision to base the facility in Franschhoek was influenced by the area’s reputation as an agricultural hotspot, as well as the new revenue, skills development and jobs the facility will bring to the area.
When phase two is completed, the facility will be able to offer roughly 80 locals new employment opportunities.