Last checked at 17 Jul 2023 07:00
17 July 2023
Kanabo Group Plc
("Kanabo", the "Group" or the "Company")
Commercial Success for Kanabo Agritec with Contract Award in Spain
Kanabo Group plc (LSE: KNB), a health-tech company focused on patient care with its innovative digital healthcare platform and medical cannabis treatment portfolio, announces that its 40% owned subsidiary, Kanabo Agritec Ltd. ("Agritec"), has signed a contract with Taima Growth S.L. ("Taima"). The contract is for the development of an indoor medical cannabis cultivation and processing facility in Madrid, Spain ("the Agreement").
Kanabo Agritec provides consulting services around facility planning, design and implementation for the production of medical cannabis. Agritec's expertise includes choosing genetics, the automation of irrigation and fertigation, humidity control systems and optimising harvest through bespoke solutions.
Taima was incorporated as a SPV (special purpose vehicle) in 2019 and is seeking to establish a network of facilities for the cultivation and distribution of medical-grade cannabis in Spain. Notably, partners from Aurea Capital Partners, a Spanish investment firm focusing on renewable energy and sustainable agriculture, are invested in the project. Aurea Capital Partners has a proven track record in sustainable investment, recently selling its first investment in Spain to Goldman Sachs. Agritec currently holds 5% of the issued share capital of Taima, and its shareholding will be incrementally increased by an additional 15% based on the achievement of specific milestones.
Avihu Tamir, Chief Executive Officer of Kanabo, commented:
"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. We're excited about this synergy and the immense potential it holds.
"We look forward to supporting Agritec and their work with Taima."
The Project
The project will run in two stages, with Phase 1 expected to begin in the next few months and last 12 months. Following completion of Phase 1, the Spanish Agency of Medicines and Medical Devices ("AEMPS") will inspect the facility and will grant a licence for production and manufacturing of Cannabis and its products, subject to the successful passing of the inspection.
Upon receipt of the licence, Agritec is contracted to implement Phase 2 of the project, which is expected to last between 8 and 12 months. The facility will be fully operational at the conclusion of Phase 2 and will be capable of producing up to 3,000 kgs of cannabis flowers annually.
Regarding revenue generated from the Agreement, while specific numbers are pending finalisation of timelines, Agritec anticipates a significant financial yield from this pivotal project. Concrete figures are expected to be announced shortly but we are pleased to confirm that this contract represents a substantial opportunity for enhanced revenue generation. Further information on projected revenue will be shared in due course.
The Agreement marks an important growth stage for the Group's subsidiary and will contribute to Kanabo's long term strategy to diversify and secure a reliable supply chain. The facility will also adopt Kanabo's high-quality manufacturing standards, ultimately facilitating patient access to the highest-quality products.
Enquiries:
Kanabo Group plc Avihu Tamir, Chief Executive Officer Assaf Vardimon, Chief Financial Officer Ian Mattioli, Non-Executive Chair of the Board | via Vigo Consulting +44 (0)20 7390 0230 |
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Peterhouse Capital Ltd (Financial Adviser and Broker) Eran Zucker / Lucy Williams / Charles Goodfellow | +44 (0)20 7469 0930 |
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Vigo Consulting (Financial Public Relations/Investor Relations) Jeremy Garcia / Fiona Hetherington / Verity Snow kanabo@vigoconsulting.com | +44 (0)20 7390 0230
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About Kanabo Group Plc
Kanabo Group Plc (LSE:KNB) is a healthtech company committed to revolutionising patient care through its innovative technology platform and disruptive product offerings. Since its inception in 2017, Kanabo has been focused on researching, developing, and commercialising regulated medicinal cannabis-derived formulations and therapeutic inhalation devices.
Kanabo's NHS-approved online telehealth platform, The GP Service, provides patients with video consultations, online prescriptions, and primary care services. The Company is a leader in its field, focusing on improving patient outcomes and providing more accessible healthcare experiences.
The Company's partially owned subsidiary, Kanabo Agritec Ltd, is a cultivation consultancy supporting cannabis businesses in developing new farms through infrastructural, research, and product guidance. These farms deliver high-quality raw materials for Kanabo's formulas and product line.
In March 2023, Kanabo successfully launched its Pain Clinic, Treat It, under the expert guidance of its technological and product expertise. Treat It initially focuses on chronic pain management using plant-based medicine and treatments that are currently unavailable through traditional channels.
At Kanabo Group Plc, we are dedicated to providing patients with the highest quality medical treatments and more accessible healthcare experiences.
Visit www.kanabogroup.com for more information.