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MG Health expands production following a rise in global demand for pure medical cannabis

African company MG Health, a licensed cultivator and manufacturer of medical-grade cannabis extracts and products, is tripling its output capacity after a successful international funding round, raising US$18mn in capital

MG Health will expand its portfolio of medicinal cannabis strains and formulated extracts to meet the wider demand in key export markets including Germany, Australia, Poland and Israel. The Lesotho-based company is one among the handful of companies wordwide that have been confirmed as compliant with European Union (EU) good manufacturing practice (GMP) for medical cannabis, thereby allowing it to export its medicinal cannabis flower and extracts as an Active Pharmaceutical Ingredient (API) to pharmacies in the EU and select other markets.

“What makes our pharmaceutical grade product so unique and in demand is how pure it is. It is produced in the pristine environment of Lesotho, 2,000 metres above sea level, where the exceptionally clean air quality and our state-of-the-art facilities enable us to consistently produce a non-irradiated product that is on par with the highest quality in the world,” says MG Health’s CEO, Andre Bothma.

Since starting with research and development in 2018, MG Health has looked to incorporate the many lessons learnt over the last five years to optimise its production for the global medical cannabis market and further support its country distribution partners.

Moreover, the company is supporting a large staffing compliment in a remote, undeveloped part of Lesotho that also contributes to numerous business opportunities for local entrepreneurs. To date, MG Health has managed to create close to 300 permanent jobs with the potential to significantly increase employment at full production. In addition to this, the company has executed several infrastructure projects, including ablution, clean water supply and refuse collection facilities, for the benefit of the local villages.

Luke van der Nest, MG Health's Director of Business Development stated that expanding their operations would not only increase their output, but also enable them to cultivate smaller batches at a higher frequency in order to react to changing conditions and provide a broader portfolio of curated genetics. “It also helps that we have access to clean water and sufficient electricity and a business-friendly environment in Lesotho with a supportive regulatory framework,” van der Nest concludes.