RCS - Kanabo Group PLC - New Subsidiary

KanaboAnnouncement

16/06/2022 07:00

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RNS Number : 0395P  Kanabo Group PLC  16 June 2022

Kanabo Group Plc.

("Kanabo" or the "Company")

 

New Subsidiary

 

First MoU for an Indoor Medical Cannabis Production Facility in Spain

 

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 it has formed a new, partly
owned, subsidiary to monetise the Company's Intellectual Property and that the
new subsidiary has signed its first Memorandum of Understanding ("MoU") for an
indoor medical cannabis cultivation project in Spain.

 

Kanabo Agritec Ltd

Kanabo Group plc has formed an Israeli subsidiary company, Kanabo Agritec Ltd.
("Agritec"), which Kanabo Research Ltd, a wholly owned subsidiary of Kanabo
Group plc., holds a 40% shareholding together with certain additional control
rights over the strategic direction of the subsidiary

 

Agritec's sole purpose is to enter into agreements with third parties at
minimal cost to leverage the Company's Intellectual Property for the
cultivation, processing, and production of cannabis products.

 

The strategic rationale for Kanabo is twofold:

·    Firstly, Agritec provides Kanabo with complementary near-term revenue
opportunities

·    Secondly, Agritec will offer Kanabo improved security of cannabis
supply through a diverse range of suppliers, who will all adopt Kanabo's
high-quality manufacturing standards without Kanabo having to fund or become
directly involved in cannabis cultivation.

 

Agritec's three other shareholders are co-founders Ophir Shimshi and Eilon
Bdil, experts in Cannabis regulation and cultivation and R. P. Growing
Technologies Ltd., who each hold 20% of the issued share capital in Agritec.

 

R.P. Growing Technologies Ltd, is a Group of companies, which includes Grow
Tec Innovations Ltd (2018) & We Can Dry Ltd (2018), which are both
experienced in agricultural technology projects, providing a wide range of
services, from planning, designing, engineering and/or manufacturing as well
as complete turnkey projects and high-level agricultural projects in field of
medical Cannabis.

 

Agritec, will be able to offer customers turnkey consulting services relating
to the:

·    Procurement, design and build of commercial scale medical cannabis
cultivation facilities

·    Supply high-quality genetics and standard operating procedures for
optimal medical cannabis cultivation

·    Provide post-harvest services including offtake agreements with
Kanabo Group plc

·    Design and draft reporting and documentation filing services with the
local authorities

·    Provide local training and ongoing consulting services

 

First MoU for a 4,000kg Indoor Medical Cannabis Production Project in Spain

Agritec has signed its first MoU for the design, build and operation of a
4,000kg per annum indoor cultivation and processing facility in Madrid, Spain.
The proposed facility is to be focused exclusively on medical cannabis.

 

As per the terms of the MoU, Agritec may may elect to receive up to 20%
ownership of the Project based on the achievement of agreed milestones.

 

 

 

For further information, please visit http://www.kanabogroup.com/ or
https://www.voxmarkets.co.uk/listings/LON/KNB
(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.

 

The Company 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.

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