Last checked at 17 Aug 2021 07:00
17 August 2021
Kanabo Group Plc
("Kanabo" or "the Company")
Update: New contract signed by Materia
The Board of Kanabo notes the recent announcement published by Materia and are delighted that Materia's wholly-owned subsidiary Materia Deutschland GmbH ("Materia Deutschland"), has entered into an agreement with German medical cannabis manufacturer Eurox Pharma GmbH to distribute German-produced medical cannabis extracts.
Extracts are the fastest growing format in Germany's medical cannabis market, exhibiting approximately +62% sequential quarterly growth at the beginning of this year.1 As at the end of 2020, medical cannabis extracts had been distributed across almost one-fifth of public German pharmacies.2
According to the announcement, this agreement will importantly add a new line of cannabis extracts products for Materia Deutschland's curated portfolio and help accelerate the expansion of its distribution network across Germany, including new pharmacies that dispense extracts.
Nick Pateras, Managing Director, Europe at Materia, said, "This is a strategic step forward in our preparation for the market's increasing adoption of medical cannabis in the form of extracts. Our sales team is already trained and equipped to win new pharmacy customers with the addition of this new format."
The full announcement can be found on Materia's website (http://www.materia.global).
Further Details
In an announcement published on 26 July 2021, Kanabo announced the signing of a non-binding term sheet with Materia, to acquire Materia's European businesses (the "Proposed Transaction"). The closing of the Proposed Transaction remains subject to (among other items) due diligence, the entering into of a definitive agreement, the receipt of all requisite third party approvals and the drafting and approval of a prospectus, as per the Listing Rules. The Company and Materia are currently undertaking the due diligence process and are working on reaching a definitive agreement. The Proposed Transaction, if completed, would constitute a Reverse Take-over under the Listing Rules ("RTO"). Upon the successful completion of the RTO and publication of a prospectus, Kanabo anticipates that it would subsequently re-apply for listing on the Standard Segment of the Official List.
Kanabo Group Plc
Tel: +(972)52-3173-633
press@kanabogroup.com
Meirav Horn
Peterhouse Capital Limited (Financial Adviser)
Tel: +44 (0)20 7469 0930
Eran Zucker / Guy Miller
Peterhouse Capital Limited (Corporate Broker)
Lucy Williams / Charles Goodfellow
Vox Markets (Investor Relations)
kperez@voxmarkets.co.uk
Katrina Perez
About KANABO GROUP PLC
Kanabo aims to create a new standard in the medical cannabis industry by building an ecosystem that improves the well-being of millions around the world by providing an alternative solution to the smoking of medicinal cannabis flowers. With a focus on the distribution of cannabis-derived products for medical patients, and non-THC products for CBD consumers, Kanabo has conducted extensive Research & Development in order to produce high-quality cannabis extract formulas, innovative medical-grade vaporizers, and various non-smoking consumption solutions.
1 GKV-Spitzenverband, Q1/21 vs. Q4/20.
2 Insight Health Market Report.