(Alliance News) - Cash shell Spinnaker Opportunities PLC on Tuesday said it has issued a second loan tranche of GBP100,000 to Kanabo Research Ltd, the medicinal cannabis firm it is aiming to acquire through a reverse takeover.
The loan was made to "support sales growth" at Kanabo, ahead of the takevoer being completed.
Spinnaker said: "Kanabo and the company continue to make good progress towards satisfaction of the conditions for completion of the proposed acquisition as set out in the previous update. However, until all conditions are satisfied, there can be no certainty that the transaction will proceed."
Spinnaker's shares have been suspended since February 2019, after the company signed a non-binding heads of terms to acquire Kanabo.
Kanabo deals in the formulation and distribution of medicinal cannabis oil, with a portfolio of activities in Switzerland, Germany and Israel.
Spinnaker was initially seeking an acquisition in the energy or industrial sectors, though in September 2018, it said it expanded its investment focus to include cannabis firms.
By Eric Cunha; ericcunha@alliancenews.com
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