May 23, 2024


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Global Cannabis Applications (APP.C) latest LOI gets them into South African cannabis market

Global Cannabis Applications (APP.C) signed a letter of intent to pick up 33% of a South African cell captive (CC) insurance company involved in cannabis grow operations in South Africa from Blue Anchor Risk Solutions.

The transaction will include Global granting Blue Anchor exclusive sublicense rights for Efixii software in South Africa, Lesotho, and Zimbabwawe, with royalties coming back to Global. The LOI will become a definitive agreement no later than Feb 15, 2022.

“As the first cell captive insurance offered exclusively to the cannabis sector, we require governance and quality assurance by our cultivators of which Efixii provides as a software system. With over 400 licences issued on the African continent, we believe as an insurance company and provider of the state-of-the-art track, trace and efficacy solution will provide the insight required for better quality and global compliance and governance for offering premium African grown product globally,” said Ildiko Richardson, Blue Anchor Risk’s founder.

APP designs and develops a software-as-a-service licensing and data tech for the medical cannabis industry. It’s a blockchain based provenance platform for medical cannabis data solutions, stretching from the patient to the regulator. They make use of six core technologies including mobile apps, artificial intelligence, RegTech, smart databases, Ethereum blockchain and Global smart rewards.

A cell captive is a type of insurance licensed to underwrite a particular type of risk or industry segment. Blue Anchor’s cell captive gives the underwriter the ability to service medicinal cannabis cultivators and growers.

Presently no other South African insurer offers industry-specific solutions to this market, and there are 45 approved commercial licenses in South Africa with another 150 applications presently being processed. Between the three countries, Lesotho is the most advanced, with approximately 15 growers presently operating. Zimbabwe, in contrast, has 47 licenses issued or in the process of being issued.

CC will carry a value of $600,000 and Global will purchase 33% of that by granting four million new shares of Global to Blue Anchor at $0.05. the four million shares will be used by CC as collateral for its insurance book. It can be sold if a valid claim is registered by the collateral holder, and Blue Anchor will grant an option to buy them back at $0.1, exerciseable when the collateral is replaced by cashflow of the cell captive and the second anniversary of the transaction.

—Joseph Morton

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