Kanabo Grp Plc Share Price (KNB)

In Europe, medical cannabis and telehealth operator Kanabo saw its stock increase by over 10% following the publication of its latest annual results.

In the year ended December 31, 2023, Kanabo reported revenues of £895k, up nearly 50% from £603k year-on-year.

This included £828k of revenues from The GP Service, the telehealth service Kanabo purchased in 2022, which also reported a net loss of £1.16m during the year.

“As a Group, we are executing against our strategic plan, leveraging our pharmacy network to expand the reach of our digital health services, and expanding our medicinal cannabis product portfolio,” the company said.

It’s ‘secondary care’ operations, which cover the development and distribution of cannabis-derived medicinal and wellness products, also reported revenues of £67k.

While gross profits came in at £134k, the company reported an overall loss for the year of £7.7m ‘as a result of impairment of intangible assets and goodwill in the amount of £4.4m’.

Impairment of intangible assets and goodwill refers to the process of recognising a decrease in the value of these assets on a company’s balance sheet. Intangible assets include items such as patents, copyrights, trademarks, and goodwill, which represent the value of a company’s brand, reputation, customer relationships, and other non-physical assets.

The year also saw Kanabo raise a further £2.74m through both ‘new and existing investors’, and recoup £82k following legal action against Materia, a partner that fell into receivership in March 2023.

Looking ahead, the company says that the ‘formulation and launch of medical cannabis products remain a bedrock’, and it is currently awaiting CE approval for its VapePod MD medicinal inhaler device.

Once secured, Kanabo plans to launch the product in the booming German medical cannabis market, and is reportedly already in the process of finalising definitive distribution agreements.

Definitely progressing but hard to see past another raise. Company is poised to boom if the UK sector changes. Dan Poulter defection highlights no belief in tories NHS situation will get better. He may be well positioned now to give the advice of diversifying to other medical solutions such as what Kanabo offer.

Positive results in my view.

Products are selling, increasing reach by opening 10 more walk in clinics by the end of the year, launch of products in Germany coming soon (distribution agreement in place) and a Treat It App all sounds exciting. DYOR

Not much of a reaction form the market either way with the results, a few positives regarding money in, the net loss is down, does that included the 2.5ml funding round? Or is that included in the “cash” pot.

Thoughts on the results?

Https://www.ktvu.com/news/dea-wants-to-declassify-marijuana-as-less-powerful-drug-like-tylenol.amp