Established in 2019, AphriHelios (formerly known as CannaLeaf Pty Ltd.), cultivates, processes and exports medical cannabis across Africa and internationally. The company is currently undertaking a four-phase implementation process to become the largest vertically integrated cannabis producer in Africa. But Should you invest in AphriHelios?
AphirHelios received its medical cannabis producer and exporter license from the Lesotho Ministry of Health on October 25, 2019. The US-based company, headquartered in Bethesda, Maryland, has active offices in Cape Town, South Africa, and Maseru, Lesotho.
The company’s operations are primarily based in Lesotho and are currently expanding to South Africa, Zambia, and Ghana.
Let’s take a closer look at AphriHelios to see if this there is an investment opportunity here:
African Cannabis Market Opportunity
Africa sits on 40% of the world’s natural resources and is known for its quality cultivation, and multi-generational horticultural skill-base. The continent is the world’s largest producer and consumer of medical and recreational cannabis, with a competitive low-production cost advantage. Moreover, Africa’s ideal climate and arable land, along with low labor costs make it best suited to become the global outsourcing hub for cannabis.
Related: Top 3 Cannabis ETFs to Watch in 2021
Cannabis is gradually becoming legal pan-Africa, with around 10 countries legalizing the use of medicinal and recreational cannabis. This is expected to contribute substantially to the global demand for cannabis and hemp.
“I am firmly of the opinion that the eventual winner in the cannabis market will be whoever tries to produce in the rich world will lose. The market will – as largely with tobacco – end up in the hands of those producing in Southern Africa. Yes, brands will be important, distribution and all that, but production will necessarily be where it’s cheap. Thus I have no faith in any company that isn’t already trying to set this up.”
-Tim Worstall, Seeking Alpha
The legal cannabis market is expected to be valued at US$72.40 billion by 2027, while the global cannabidiol (CBD) wellness industry is expected to be valued at US$4.50 trillion.
South African countries are expected to emerge as the largest mass producers of cannabis over the long term, owing to competitive production costs. The burgeoning African diaspora and rapid commoditization of cannabis are expected to shape the future of the global cannabis and hemp industry.
AphriHelios Growth Strategy
AphriHelios’ pan-African growth strategy involves four phases of cultivation, processing, and branding to become the continent’s largest vertically integrated cannabis company. The company has access to 3 hectares of cultivation space with 33,000 kg of dry flower production capacity. Following the GAP cultivation, the company plans on building adequate infrastructure as per GMP requirements, as well as construct GMP API facilities, to support extraction for all dry flower output.
Related: Canopy Growth Announces $29 Million Acquisition of African Company Daddy Cann Lesotho
Under the stage 2 (or phase 4) implementation plan, the company plans to conduct a detailed market analysis to develop new brands or acquire existing brands. Following this, AphriHelios plans to develop and manufacture retail products focused on specific and targets niches, under the retail product development phase.
AphriHelios is planning on developing a robust supply chain across key retail markets globally. In fact, the company plans to sell cannabis products directly to United States markets in Oakland, Detroit, Atlanta, Newark, etc. as well as across major European markets, from its production centers in Maseru, Lesotho, and neighboring regions.
This sounds promising but should you invest in AphriHelios?
Investing in AphriHelios Crowdfunding and 506(c) Campaigns
AphriHelios should grow in tandem with the African cannabis industry to become one of the largest cannabis producers globally. The ongoing seed investing rounds is an ideal investment opportunity for investors betting on the cannabis industry to be the next “big” thing.
AphriHelios is currently in the process of raising $450,000 through convertible notes offering over the next two years, under Reg D Section 506(c). The company is offering 8% convertible notes discounted at 20%, with a valuation cap of $15 million. It should be noted that investors are required to invest a minimum of $5,000.
The company is also offering early bird and volume incentives, through a stipulated percentage of additional conversion shares at the time of investing. Investors who purchased the first 1,000 units of the notes offered are entitled to a supplemental 15% preferred shares at the time of conversion during qualified equity financing, under the early bird incentive package.
Related: Aphria Enters Landmark Venture Agreement with Cannivest Africa and Verve Group
Under the volume bonus, people investing at least $5,000 are entitled to 10% additional conversion shares through qualified equity financing. Furthermore, investors purchasing notes for more than $10,000 are qualified to receive 12.5% additional conversion shares. Investments upward of $20,000 and $25,000 respectively are eligible to receive 15% and 25% additional conversion shares.
AphriHelios is committed to equitable investments, as demonstrated by its crowdfunding campaign and investor private placement. Regarding this, the company’s CEO Darin Hickman said, “The crowdfunding platform is very useful for this round of capital raise in particular, as it allows greater individual investment participation. There was a critical need to include the African Diaspora, and friends of Africa both to ensure social equity in the burgeoning and highly profitable global cannabis industry market.”
Bottom Line: Should You Invest in AphriHelios?
Although AphriHelios is an emerging cannabis company, they have a solid business model and they’re backed by heavy-hitters from adjacent industries. They’ve also got strong backing from some well-known and highly-accomplished advisory board members. Of course, there is risk with investing in cannabis companies like AphriHelios – but we see a significant upside to the company for the following reasons:
- Strong product and brand strategy that includes partnerships with high profile individuals to build their personal brands.
- Dynamic Team touting a combined 60 years experience in corporate finance, investment, agribusiness, start-ups, sports & entertainment, and project management in the US and on the African continent.
- Low cultivation costs in Lesotho, the first African country to legalize cannabis for commercialization and export and where AHG has a license.
- On a path to become the leading, vertically integrated cannabis cultivation, processing, and distribution company on the African continent.
- Helping communities who have historically been marginalized by the industry through democratizing access to this investment opportunity.
They’ve also got the support of celebrity advisory board members like actor, motivational speaker, and long-time cannabis advocate Montel Williams.
AphriHelios is a pan-African vertically integrated cannabis company that seeks to leverage Africa’s low production cost advantage to bring high quality cannabis and new and exciting brands to the global market.
Ready to Invest Now? Visit the AphriHelios Investor Portal
If you’d like to find out more about this exciting opportunity or join AphriHelios on this journey by investing, please visit the AphriHelios.com
Should You Invest in AphriHelios?
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