(Alliance News) - Kanabo Group PLC announced on Monday that its partially owned subsidiary has received an advanced payment of EUR200,000 from a contract awarded last year.
The London-based healthcare technology and cannabis company announced in July 2023 that its 40% owned subsidiary, Kanabo Agritec Ltd, signed a contract with Taima Growth Sl to provide consulting services for the development of an indoor medical cannabis cultivation and processing facility in Madrid, Spain.
In July last year, the company stated that Agritech held 5% of Taima's issued share capital and that it planned to incrementally increase its position by an additional 15% based on the achievement of specific milestones. No update on this has been issued, however, pursuant to the contract, Agritec will receive additional payments that will generate revenues totalling over EUR500,000 after phase one.
Once phase one is complete, Spanish regulators will inspect the facility to determine whether a licence for production can be granted. The directors of Kanabo believe that Agritec will then implement phase two of the project and following this, the facility will be fully operational and capable of producing up to 3,000 kilograms of cannabis flowers annually.
Kanabo Chief Executive Avihu Tamir said: "I am encouraged by the progress of Agritec's first venture and our strategic collaboration with Taima. This strategy is integral to our expansion, especially as we leverage our established distribution channels in the UK. This initiative is a significant step towards enhancing our supply chain and producing high-quality medical cannabis products. It prioritises quality and competitive pricing, enabling scalable growth."
Shares in Kanabo were up 6.3% to 1.91 pence in London on Monday afternoon.
By Elijah Dale, Alliance News reporter
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