Kanabo Group PLC - Tel Aviv-based medical cannabis company - Says it will now form a strategic partnership with Materia, rather than a previously proposed acquisition deal. Kanabo aims to leverage Materia's assets without exposing its shareholders to dilution and without needing to raise funds.
The partnership is currently being finalised. In July 2021, Kanabo had agreed to acquire Materia's European businesses in a reverse takeover.
Kanabo Chief Executive Officer Kanabo Avihu Tamir said:"We have concluded that the all-share acquisition of Materia is no longer in the best interests of Kanabo given prevailing market conditions and the alternatives available to us. However, this envisaged strategic partnership will directly support the company's key strategy which is the commercialisation of its medical cannabis products in the UK and Germany."
Current stock price: up 3.0% at 3.99 pence
12-month change: down 80%
By Xindi Wei; xindiwei@alliancenews.com
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