RCS - Kanabo Group PLC - Materia Announces Trading Update for 4Q22

KanaboAnnouncement

18/01/2022 07:05

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RNS Number : 7924Y  Kanabo Group PLC  18 January 2022

Kanabo Group Plc

("Kanabo" or the "Company")

Materia Announces Trading Update for 4Q22

First Production Sold Out Ahead of Forecasts

 

Kanabo Group Plc (LSE:KNB), the pan-European medical cannabis company
focussing on developing and commercialising cannabis-derived products for
medical patients and wellness CBD for consumers, notes Materia's positive
trading update for Q4 2021, published on Materia's website
(https://www.materia.global/press/materia-provides-update-on-performance-and-2022-outlook/)
.

 

As announced on 16 December 2021,
(https://www.voxmarkets.co.uk/rns/announcement/708bde89-c7c4-48d4-8100-155db4b76765/)
Materia's wholly owned subsidiary Materia Malta Operating Ltd. ("Materia
Malta") commenced sales of the first medical cannabis flower produced at its
EU GMP certified manufacturing site in Europe.

 

According to the Q4 update provided by Materia, the entire first volume
production run has been sold out within the first two weeks of sales
commencing, with distribution partners returning to replenish inventory on
multiple occasions.

 

This marks a successful quarter of performance for Materia, with Materia
Deutschland GmbH continuing to expand its distribution network and achieving
its strongest quarter of pharmacy sales for the year. At a group level,
Materia's Q4 sales grew +48% over Q3 (Based on unaudited financial records for
2021), an acceleration of previous revenue growth.

 

Looking ahead, Materia anticipates the achievement of more operational
milestones in 2022, including the first sale into Germany of medical cannabis
manufactured by Materia Malta. Materia is also targeting other important
European markets such as the United Kingdom, as well as broadening its
portfolio to include new formats such as cannabis extracts.

 

As per the announcement on 4 November 2021
(https://www.voxmarkets.co.uk/rns/announcement/b76e604f-3e83-44df-b415-a236507a436c/)
, and in-line with the Company's stated strategy to generate shareholder value
through M&A, Kanabo Group Plc has finished the majority of its due
diligence work as part of the proposed acquisition of the European businesses
of 11157353 Canada Corp. (the "Proposed Transaction"), which trades under the
name of Materia ("Materia"). The Proposed Transaction contemplates the full
acquisition of Materia's European business, including its Maltese EU GMP
certified facility, German medical cannabis wholesaler and UK CBD e-commerce
platform.

 

The Proposed Transaction is still subject inter alia to the agreement of
formal documentation and conditional on, among other things, the receipt of
all necessary regulatory consents.

 

 

For further information, please visit http://www.kanabogroup.com/ or contact
the following:

 Kanabo Group Plc
 Avihu Tamir, CEO                                       Via Vox Markets
 Peterhouse Capital Ltd
 Eran Zucker (Financial Adviser)                        Tel: +44 (0)20 7469 0930
 Lucy Williams / Charles Goodfellow (Corporate Broker)  Tel: +44 (0)20 7469 0930
 Vox Markets (Investor Relations)
 Kat Perez                                              KanaboGroup@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.

 

About Materia

Materia is a leading independent processor and distributor of medical cannabis
and CBD wellness products. Materia has developed a robust EU-GMP manufacturing
and distribution ecosystem to grow the legal cannabinoid market across Europe.
With its research-driven team and regulatory expertise, Materia focuses on the
high-margin downstream activities of processing, formulation and distribution
into markets wherever there is a patient in need of cannabis medicine or CBD
consumers seeking innovative new products.

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