(Alliance News) - Kanabo Group PLC on Monday said its subsidiary, Kanabo Agritec Ltd, has signed a contract with Taima Growth SL for the development of an indoor medical cannabis cultivation facility in Madrid.
The London-based patient focused healthcare technology and cannabis company said the project will run in two stages, with phase one due to begin within the next few months.
Upon completion of the first phase, the Spanish Agency of Medicines & Medical Devices will carry out an inspection, and if successful, grant a production and manufacturing licence for cannabis.
Agritec will be in charge of the second phase of the project, with the process expected to last from eight months up to a year. Once completed, the facility will be fully operational and capable of producing up to 3,000 kilograms of cannabis flowers annually.
Kanabo Agritec, which is 40% owned by Kanabo Group, offers consulting services for the production of medical cannabis. Taima Growth is a Majadahonda, Madrid-based pharmaceutical manufacturing company specialising in medical cannabis.
Kanabo Chief Executive Officer Avihu Tamir said: "Securing this agreement marks a pivotal step in Kanabo's roadmap. The high-quality supply chain that Agritec and Taima's partnership offers not only ensures access to premium materials but also promises to generate profits and enhance shareholder value for the group."
Shares in Kanabo were up 2.8% at 1.98 pence each in London on Monday afternoon.
By Sabrina Penty; Alliance News reporter
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