Cilo Cybin transitions to JSE's Main Board, General Segment, unlocking growth potential

Cilo Cybin, the Cannabis Special Purpose Acquisition Vehicle (SPAC) that listed on the JSE's AltX Board in June 2024, transitioned to the Main Board on Monday, where it seeks to pursue additional growth avenues, both organically and through acquisitions.

The JSE said on Monday that the transition from AltX to the Main Board's General Segment has followed the Financial Sector Conduct Authority’s approval of amendments to the Listings Requirements in September 2024, as part of the JSE’s Market Segmentation Project.

These amendments introduced two Main Board segments: Prime and General, designed to align regulatory frameworks with issuers’ size and liquidity.

Since the General Segment’s launch last year, over 30 companies have migrated to this segment. This, the JSE said, reflects an appeal by companies seeking to benefit from a regulatory environment that promotes growth by providing more enabling capital raising measures, cost savings, efficient financial reporting, as well as greater flexibility for the company boards to manage the business.

“Cilo Cybin’s transition from AltX to the Main Board in just over a year highlights the Market Segmentation Project’s success in providing a clear path for companies to grow and advance their market position,” said Maurice Madiba, Head: Primary Markets at the JSE.

He said this framework supported the needs of companies of differing sizes and liquidity levels and enables them to raise capital and undertake corporate actions within an appropriate regulatory framework while maintaining investor confidence in the market.

The move to the Main Board has provided Cilo Cybin with improved visibility and a broader investor base, ensuring access to greater capital for growth, he said.

As part of its classification in the General Segment, the company could now apply for an automatic annual rolling general authority to issue shares for cash, representing up to 10% of its issued share capital, without requiring shareholders’ approval.

Additionally, it also removed the requirement for fairness opinions for related party transactions/corporate actions, with more emphasis placed on shareholders’ approval, disclosure, and the corporate governance processes applied.

Cilo Cybin CEO Gabriel Theron said: “Our journey as a SPAC on the AltX has been critical to establishing solid foundations to make the transition to a Main Board listing. This listing cements our position as a valuable medical cannabis company in South Africa and enhances our ability to attract capital to increase our manufacturing scale and improve our competitiveness as we focus on expanding into new markets.”

He said their growth trajectory and achievements positioned the company to grow its international footprint in the emerging cannabis industry and deliver value to shareholders.

Cilo Cybin focuses on identifying viable investments in biotech, biohacking, and pharmaceutical businesses in the medical cannabis market.

“It is inspiring to see companies mature on the exchange to a point where they outgrow the AltX’s capabilities and qualify to transition to the JSE’s Main Board,” said Madiba.

He said the JSE was committed to creating an even more enabling environment for listed companies and supporting them in line with their increased size and operations, ensuring they were able to remain competitive in an emerging sector that was poised for growth globally.

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