REG - Kanabo Group PLC - Agritec Update

KanaboAnnouncement

18/03/2024 09:15

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RNS Number : 2224H  Kanabo Group PLC  18 March 2024

 

 

18 March 2024

Kanabo Group Plc

("Kanabo", the "Group" or the "Company")

 

Agritec, Marks Milestone in the Medical Cannabis Project

 

Pursuant to its announcement on 17 July 2023, Kanabo Group plc (LSE: KNB)
announces that its partially owned subsidiary, Kanabo Agritec Ltd.
("Agritec"), has now received an advance payment of over EUR 200,000 from its
contract with Taima. Agritec is providing consulting services and equipment
and expects a further payment of an equal amount upon completion of Phase 1,
totalling over EUR 500,000 in revenue for Agritec.

 

Agritec provides consulting services for facility planning, design, and
implementation to produce medical cannabis. Its expertise includes choosing
genetics, automating irrigation and fertigation, installing humidity control
systems, and optimising harvest through bespoke solutions.

 

Taima was incorporated as an SPV (special purpose vehicle) in 2019 and is
seeking to establish a network of facilities for the cultivation and
distribution of medical-grade cannabis in Spain. Notably, partners from Aurea
Capital Partners, a Spanish investment firm focusing on renewable energy and
sustainable agriculture, are invested in the project. Agritec currently holds
5% of Taima's issued share capital, and its shareholding will incrementally
increase up to 20% based on the achievement of specific milestones.

 

Avihu Tamir, Kanabo Group Plc CEO:

"I am encouraged by the progress of Agritec's first venture and our strategic
collaboration with Taima. This strategy is integral to our expansion,
especially as we leverage our established distribution channels in the UK.
This initiative is a significant step towards enhancing our supply chain and
producing high-quality medical cannabis products. It prioritises quality and
competitive pricing, enabling scalable growth. Our focus on these areas,
combined with Agritec's expertise, makes Kanabo Group a long-term player with
a built-in advantage in the industry."

 

The Project

 

The project is running in two stages, with Phase 1 currently underway.
Following completion of Phase 1, the Spanish Agency of Medicines and Medical
Devices ("AEMPS") will inspect the facility and will grant a license for the
production and manufacturing of medical cannabis and its products, subject to
the successful passing of the inspection.

 

Upon receipt of the licence, the directors of Kanabo believe that Agritec will
implement Phase 2 of the project, which Agritec expects to last between 8 and
12 months. At the conclusion of Phase 2, the facility will be fully
operational and capable of producing up to 3,000 kg of cannabis flowers
annually.

 

 

Enquiries:

 Kanabo Group plc                                                 via Vigo Consulting

 Avihu Tamir, Chief Executive Officer                             +44 (0)20 7390 0230

 Assaf Vardimon, Chief Financial Officer

 Ian Mattioli, Non-Executive Chair of the Board

 Peterhouse Capital Limited (Financial Adviser and Broker)        +44 (0)20 7469 0930

 Eran Zucker / Lucy Williams / Charles Goodfellow

 Vigo Consulting (Financial Public Relations/Investor Relations)   +44 (0)20 7390 0230

 Jeremy Garcia / Fiona Hetherington / Verity Snow

 kanabo@vigoconsulting.com (mailto:kanabo@vigoconsulting.com)

 

About Kanabo Group plc

Kanabo Group plc (LSE:KNB) is a digital health company committed to
transforming patient care through its innovative technology platform and
specialised treatment offerings. Since its inception, Kanabo has been focused
on researching, developing, and commercialising regulated medicinal
cannabis-derived formulations and therapeutic inhalation devices.

 

Kanabo's NHS-approved online telehealth platform, The GP Service, provides
patients with video consultations, online prescriptions, and primary care
services. Leveraging its telehealth capabilities, Kanabo launched Treat It, an
online clinic focused on chronic pain management that provides patients with
secondary care.

 

With its two complementary business divisions, Kanabo has established itself
as an end-to-end digital health provider, offering telehealth consultations
and prescriptions alongside the delivery of tailored treatments.

 

The Company's partially owned subsidiary, Kanabo Agritec Ltd, is a cultivation
consultancy supporting cannabis businesses in developing new farms through
infrastructural, research, and product guidance. These farms deliver
high-quality raw materials for Kanabo's formulas and product line.

 

At Kanabo Group Plc, we are dedicated to providing patients with the highest
quality medical treatments and more accessible healthcare experiences.

Visit (http://www.kanabogroup.com/) www.kanabogroup.com
(http://www.kanabogroup.com/) for more information.

 

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