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Cannabis SPAC Flops After Failing to Lure South Africa Investors

Cannabis plants in a grow room at the Cilo Cybin Pharmaceutical Ltd. facility in Samrand, South Africa.

Cannabis plants in a grow room at the Cilo Cybin Pharmaceutical Ltd. facility in Samrand, South Africa.

Photographer: Waldo Swiegers/Bloomberg

Cilo Cybin Holdings Ltd., a South African medical cannabis company, abandoned plans for an initial public offering in Johannesburg after failing to attract enough investment.

The business, the first in South Africa to win the right to grow, process and package cannabis products, had planned to list as a special purpose acquisition company, or SPAC. The aim was to raise as much as 2 billion rand ($116 million), founder Gabriel Theron said earlier this year, yet investors offered to buy just 20.5 million rand of shares.