Press Releases

Lesotho: MG Health triples GMP production capacity after 18 million funding

Published

2 years ago

June 13, 2023

Reading Time: 6 minutes

The growth in global demand for pure medicinal cannabis causes the Lesotho grower and manufacturer MG Health to expand its capacity, with production expected to triple this year for growing international markets, the company announced in a press release. MG Health is one of the few companies worldwide that is compliant with the European Union (EU) good manufacturing practices (GMP), allowing it to export medicinal cannabis flower and extracts as an Active Pharmaceutical Ingredient (API) to pharmacies in the EU and other selected markets.

Maseru – Licensed grower and manufacturer of medical grade cannabis extracts and products, MG Health is tripling its production capacity following a successful round of international funding, raising $18 million (€16,6 million) in capital. Funding was secured after the company began distributing in key developed markets in 2021.

MG Health will expand its portfolio of medicinal cannabis strains and extracts formulated to meet broader demand in key export markets including Germany, Australia, Poland and Israel.

Headquartered high in the mountainous kingdom of Lesotho, MG Health is one of the few companies in the world that complies with the European Union (EU) Good Manufacturing Practices (GMP) for medical cannabis, allowing you to export its flower and medicinal cannabis extracts as an Active Pharmaceutical Ingredient (API – Active Pharmaceutical Ingredient) for pharmacies in the EU and other selected markets.

Andre Bothma, president of MG Health.

“What makes our pharmaceutical grade product so unique and sought after is how pure it is. It is produced in Lesotho's pristine environment, 2.000 meters above sea level, where exceptionally clean air quality and our state-of-the-art facilities allow us to consistently produce a non-irradiated product that is on par with the highest quality in the world. ”, said MG Health President Andre Bothma.

Proudly producing world-class medical cannabis

Since beginning research and development in 2018, MG Health has sought to incorporate the many lessons learned over the past five years to optimize its production for the global medical cannabis market and further support its distribution partners in the country.

“Expanding our operations will not only increase our production, but also allow us to grow smaller batches more frequently to react to changing conditions and provide a broader portfolio of selected genetics,” says Luke van der Nest, development director of MG Health business. “It also helps that we have access to clean water, sufficient electricity and a business-friendly environment in Lesotho with a supportive regulatory framework.”

Contribute to local community development and economic upliftment

MG Health is supporting a large labor pool in a remote and underdeveloped part of Lesotho, which also contributes to numerous business opportunities for local entrepreneurs. So far, the company has created around 300 permanent jobs with the potential to significantly increase employment at full production. Most of the staff are from surrounding communities and many have been qualified and trained through educational programs.

MG Health has carried out numerous infrastructure projects for the benefit of local villages. These include purification, clean water supply and refuse collection facilities.

About MG Health
MG Health is a proudly African company competing on the world stage. The company, which produces cannabis for the medicinal and pharmaceutical markets in accordance with strict EU GACP and GMP principles, was founded by Andre Bothma, a third generation citizen of Lesotho with over 25 years of experience in the construction industry and real estate incorporation. Today MG Health employs around 300 people.

What is MG Health?
• Seeking to compete globally, MG Health is an African company licensed to grow and manufacture pharmaceutical grade cannabis extracts and products for the emerging medical cannabis industry.

Who founded MG Health?
• Andre J. Bothma from Lesotho founded the company. He started the business with an ambitious dream – to show that Africa can stand out on the world stage, capable of building and creating world-class cannabis facilities and products.
• MG Health first received a commercial license to operate as a vertically integrated producer of medicinal cannabis flowers and extracts in 2017. Its manufacturing standards ensure full control and enable the implementation of its “Plant for the Patient” philosophy.

When was MG Health founded?
• In early 2017, MG Health Lesotho (formerly Medigrow) obtained a license to operate in Lesotho.

Where is MG Health located?
• Situated in the landlocked mountain kingdom of Lesotho, bordered by South Africa, MG Health is situated 2 hours from the capital, Maseru. The company's operations are at 2.000 meters above sea level, in a pristine mountain environment, 10 km from the Mohale dam and isolated from any form of commercial agriculture. MG Health has also developed a world-class analytical laboratory – Lucan Labs, based in Maseru.

What makes this location ideal for growing medical cannabis?
• The location is ideal in terms of the amount of sunlight it receives, dry air and access to very clean and pure water from the Senqunyane River in Sesotho. The high altitude keeps insects at bay and the pristine mountain environment is situated hundreds of kilometers from any type of industrial agriculture.
• This is important because cannabis is a highly absorbent plant, which means that airborne pesticides from nearby agriculture or heavy metals and contaminants in the air from industrial manufacturing or factories would be absorbed and show up in the patient's medicine, either in the form of oil or in flower form. Located close to the people of Marakabei, the location was chosen for its isolation, availability of water and electricity.

How is medical cannabis grown?
• Cultivation takes place in “Dutch Controlled Environment Greenhouses”, where indoor climate, temperature, humidity and lighting are controlled for optimal flower production and consistent yields year-round.

How big is the cultivation area?
• The business is currently on a pilot scale with a 5.000m2 cultivation site in a controlled greenhouse. The next phase is the expansion, with land available to immediately expand the cultivation by 10.000m2 and another 5.000m2 later.
• With total space available to expand to around 100.000m2 of land under cultivation, the current production and extraction facility (2.000m2) was created to handle large-scale production as market demand grows.

How has MG Health contributed to the community development of Marakabei village and Lesotho as a whole?
• Around 300 permanent jobs were created, with the potential to significantly increase work at full production. Most of the staff are from surrounding communities and many have been qualified and trained through educational programs.
• Working with the community, MG Health has implemented numerous infrastructure projects to benefit local villages. These include purification, clean water supply and refuse collection facilities.
• MG Health has installed Information Technology (IT) infrastructure in local schools and its faculty runs a winter tutorial program for local school children to help them prepare for final year exams. Health services are provided to staff and community members, including staff at a clinic with trained physicians. A range of highly skilled job opportunities have been created for people living in a remote rural environment.
• MG Health believes in the philosophy of developing inter-generational wealth opportunities in the community and, as a result, did not acquire land from the community but leased it from various smallholders, with the result that the land remains free for families and can continue to generate long-term revenue.

How has MG Health created opportunities for local entrepreneurship?
• Supporting large numbers of staff in a remote and underdeveloped part of Lesotho offers numerous business opportunities for local entrepreneurs. Opportunities include the provision of vegetables, agricultural products and meals (MG Health serves at least one meal per employee per day), transportation, maintenance, education and training.
• Furthermore, out-of-town staff have to find accommodation in the area and MG Health has started to draw up a development plan for the village. Based on this plan, existing owners will be invited to build accommodation for our growing staff.
• The company's rent deduction scheme will ensure that landlords receive rents as contracted with tenants. This secure income stream will be used to obtain mortgage finance for the built-for-lease accommodation units. Local ownership and landowners, likely for the first time, will experience real economic development and inter-generational wealth creation.

For more information about MG Health visit www.mghealth.com.

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[Disclaimer: Please note that this text was originally written in Portuguese and is translated into English and other languages using an automatic translator. Some words may differ from the original and typos or errors may occur in other languages.]

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