Last checked at 20 May 2022 07:00
Kanabo Group Plc.
("Kanabo" or the "Company")
Update on Acquisition of Materia
Kanabo Group Plc. (LON: KNB), a medical cannabis R&D Company that focuses on the distribution of cannabis-derived products for medical patients, and non-THC products for CBD consumers, announces that further to the announcements made on 26 July 2021 and on 4 November 2021 regarding the European businesses of 11157353 Canada Corp., which trades under the name of Materia ("Materia"), the Company has now decided that its proposed transaction with Materia will be most effectively executed through a strategic partnership between the two independent companies, as opposed to the previously proposed acquisition.
Under the proposed strategic partnership which is currently being finalised, the Company hopes to be able to leverage Materia's assets without exposing its shareholders to dilution and without needing to raise funds.
Kanabo and Materia are currently negotiating a partnership which inter-alia, will provide the Company with:
· Access to Materia's EU-GMP production facility in Malta via a contract manufacturing agreement
· Exclusive distribution rights in the UK for Materia's new products.
Arrangements for the servicing and repayment of the CAD$1 million secured loan facility previously made available by the Company to Materia will be incorporated into the new strategic partnership.
Further details of the future Strategic Partnership will be disclosed in due course.
The Company intends to issue its annual results on the week commencing the 30th and at that time will provide further updates on its operations and strategy.
Kanabo CEO Avihu Tamir commented, "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.
For further information, please visit http://www.kanabogroup.com/ or https://www.voxmarkets.co.uk/listings/LON/KNB or contact the following:
Kanabo Group Plc | Via Vox Markets |
Avihu Tamir, CEO | |
Peterhouse Capital Ltd (Financial Adviser) | Tel: +44 (0)20 7469 0930 |
Eran Zucker / Lauren Riley | |
Vox Markets (Investor Relations) | KanaboGroup@voxmarkets.co.uk |
Kat Perez | kperez@voxmarkets.co.uk |
About Kanabo Group Plc
Kanabo Group Plc is creating a new standard in the medical cannabis industry to improve the well-being of millions of people around the world by providing a better alternative to the smoking of medicinal cannabis flowers. Kanabo, which was the first medicinal cannabis company to IPO on London Stock Exchange, has a focus on the distribution of cannabis-derived products for medical patients and non-THC products for CBD consumers.
It has conducted extensive Research & Development to produce high-quality cannabis extract formulas, innovative medical-grade vaporizers, and various non-smoking consumption solutions. Kanabo sells a range of medical cannabis products and wellness CBD products in the Primary Markets, including its VapePod, which delivers a metered dose with every inhalation.