REG - Kanabo Group PLC - Achievement of Milestones

KanaboAnnouncement

30/12/2021 13:00

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RNS Number : 0798X  Kanabo Group PLC  30 December 2021

Kanabo Group Plc

("Kanabo" or the "Company")

Achievement of Milestones

Issue of Deferred Consideration Shares

Kanabo Group Plc (LSE:KNB) the pan-European medical cannabis company that
focuses on developing and commercialising cannabis-derived products for
medical patients and wellness CBD consumers, announces the successful
completion of significant milestones set out in the prospectus published on 29
January 2021.

 

Achievement of Milestones

 

First commercial sales in the Primary Markets of a new product line to add to
Kanabo's range of Retail CBD Products, including, inter alia, new CBD oil
formulation(s) and or new delivery system for consumer use of the CBD oil
formulation(s).

 

The Company has successfully developed a novel CBD formula containing 78% CBD
+ Additional minor Cannabinoids and Cannabis-derived Terpenes all from natural
sources. Commercial sales commenced in the UK in August 2021. This unique
proprietary and patent-pending non-diluent formula provides retail customers
and registered patients a superior inhalation experience in both taste and
smoothness at a metered dose for the desired physical and mental outcomes.

 

 

Sale of one of the Company's Medical Cannabis Products in the Primary Markets

 

Kanabo successfully launched its first medical cannabis product in the UK in
July 2021, thereby demonstrating its fully operational supply, production, and
distribution chain. Kanabo's proprietary medicinal cannabis extract formulas
are now sold in pre-filled, sealed cartridges which can only be used with
Kanabo's VapePod device. The cartridges are sold as prescribed, unlicensed
medicine to patients of LYPHE Group's UK clinics and dispensaries, which
includes The Medical Cannabis Clinic.

 

 

Submission of a valid application for approval to undertake VapePod Medical
Safety Testing including the submission of detailed protocols

 

As announced separately, the Company has now submitted a clinical trial
protocol for approval at the Hadassah Medical Centre and review by the
Helsinki Committee to test the impact from the inhalation of various medical
cannabis formulas via a proprietary delivery device, which dispenses
standardised and metered inhalations, on healthy volunteers. As the first of
its kind, this trial positions Kanabo as the new gold standard for medical
cannabis inhalation within the global medical Cannabis community with
essential safety and efficacy data for the registration of Kanabo's VapePod as
a medical device in Israel.

 

 

Commenting on the achievement of the Milestones, Andy Morrison, former
Chairman of Spinnaker Opportunities Plc and Non-Executive Director of Kanabo
said: "Much has been achieved by Kanabo in the short time since its admission
to trading in February this year. It is clear from recent announcements that
the Company has a distinctive offering to investors and ambitious plans, which
it is well positioned to deliver."

 

 

Deferred Consideration Shares

Under the terms of the Share Purchase Agreement (the "SPA") entered between
(1) Spinnaker Opportunities Plc; (2) Kanabo; and (3) the Sellers (as defined
in the SPA), the Sellers are entitled to receive additional "Deferred
Consideration Shares" in the event Kanabo achieves certain Milestones.

 

The independent directors, namely Andy Morrison and Dr Dan Poulter, are
satisfied that three qualifying milestones, as set out above, have now been
achieved within the time frame set out in the prospectus published on 29
January 2021 and the SPA.

 

The record date for the entitlement to the Deferred Consideration Shares has
been determined by the independent directors to be 31 December 2021.

 

The board of the Company may in its absolute discretion determine that a
Defaulting Seller (as defined in the SPA) is not entitled to receive some or
all their Deferred Consideration Shares and it may allocate such Deferred
Consideration Shares to the other (non-defaulting) Sellers on a pro-rata basis

 

 

Issue of Equity

The Company therefore announces that 38,461,492 new ordinary shares, the
"Deferred Consideration Shares" with a total value of £2.5m will be allotted
and issued in due course.

 

The new shares will rank pari passu with the existing ordinary shares in the
Company, will be issued in accordance with the terms of the SPA and will be
subject to the lock-in and orderly market agreements therein.

 

The new shares are expected to be issued following the publication of a
prospectus in connection with the Proposed Acquisition of the European
businesses of 11157353 Canada Corp. (the "Proposed Transaction"), which trades
under the name of Materia ("Materia") as most recently announced on the 4
November 2021.

 

An application will be made to the London Stock Exchange for the New Ordinary
Shares to be admitted to trading ("Admission") in due course after issue and
the Company will update the market accordingly.

 

 

For further information, please visit 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.

 

 

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