REG - Kanabo Group PLC - Materia Malta First Sales in Europe

KanaboAnnouncement

16/12/2021 07:05

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RNS Number : 7843V  Kanabo Group PLC  16 December 2021

Kanabo Group Plc

("Kanabo" or the "Company")

Materia Malta Commences First Sales of Medical Cannabis in Europe

 

Kanabo Group Plc (LSE:KNB), a medical cannabis and R&D Company that
focuses on the distribution of cannabis-derived products for medical patients
and wellness CBD consumers, notes that Materia's wholly-owned subsidiary
Materia Malta Operating Ltd. ("Materia Malta") has commenced sales in Europe
of the first medical cannabis flower produced at its EU GMP certified
manufacturing site.

 

The inaugural product, named "Carbasi Verde", was released with a potency of
21.7% THC following successful completion of Materia Malta's first production
cycle, which includes hand trimming to ensure the best quality for patients.

 

Carbasi Verde is now available at pharmacies across Malta, with subsequent
shipments planned for Germany and the UK. The product has already been
registered on the narcotics licence of Materia Deutschland GmbH ahead of its
import into Germany.

 

As per the announcement on 4 November 2021, 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"). Kanabo and Materia have
therefore signed a revised term sheet which includes binding elements ("Head
of Terms"), and the parties consider this to be an important step towards
completion of the Proposed Transaction. As previously announced, 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.

 

 

"This journey began in earnest over two years ago, so we're elated to be
offering patients Materia manufactured and branded medical cannabis," said
Nick Pateras, Managing Director, Europe, of Materia. "Our Maltese site is
truly state-of-the-art, and with our team's deep pharmaceuticals expertise
we're confident that Materia Malta will become one of the most important
production facilities in Europe's cannabis supply chain."

 

Avihu Tamir, CEO of Kanabo Group Plc said; "Materia's pace of progress remains
remarkable. Subject to completion of the merger, the facility in Malta will
enable Kanabo's enlarged group to broaden its distribution across Europe and
solidify our plan for a complete supply and distribution line."

 

 

 

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 a medical cannabis and R&D company currently selling a
range of wellness CBD Products across its Primary Markets and developing a
range of and Medical Cannabis Products. The company's core strategy is to
increase revenues from the sale of its Retail CBD Products in the wellness
sector and to grow the Kanabo brand through its marketing initiatives. Learn
more at https://www.voxmarkets.co.uk/listings/LON/KNB
(https://www.voxmarkets.co.uk/listings/LON/KNB)

 

About Materia

Materia's medicinal cannabis assets include its Maltese, German, and UK
subsidiaries "Materia Malta", "Materia Germany", and "Materia UK"
respectively. Materia Malta operates a European Union Good Manufacturing
Practices ("EU GMP") certified facility, through which Materia Malta is able
to import cannabis flower from its global supply network of cultivators and
process it into EU GMP certified medical cannabis products. The Company
anticipates that Materia Malta will be particularly well placed to process any
new extracts developed by Kanabo. Materia Germany is a fully operational
pharmaceutical wholesaler, with EU GDP and EU GMP certificates, enabling it to
import and sell medical cannabis products directly to thousands of German
pharmacies. Materia UK sells several leading CBD and wellness brands through
Handpicked CBD, which aims to be one of the UK's largest CBD e-commerce
marketplaces, and which now features Kanabo's own CBD line, as announced on 22
September 2021.

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