REG - Kanabo Group PLC - Success for Kanabo Agritec with Contract Award

KanaboAnnouncement

17/07/2023 07:00

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RNS Number : 1462G  Kanabo Group PLC  17 July 2023

17 July 2023

 

Kanabo Group Plc

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

 

Commercial Success for Kanabo Agritec with Contract Award in Spain

 

(https://www.team17groupplc.com/) Kanabo Group plc (LSE: KNB)
(https://www.team17groupplc.com/) , a health-tech company focused on patient
care with its innovative digital healthcare platform and medical cannabis
treatment portfolio, announces that its 40% owned subsidiary, Kanabo Agritec
Ltd. ("Agritec"), has signed a contract with Taima Growth S.L. ("Taima"). The
contract is for the development of an indoor medical cannabis cultivation and
processing facility in Madrid, Spain ("the Agreement").

 

Kanabo Agritec provides consulting services around facility planning, design
and implementation for the production of medical cannabis. Agritec's expertise
includes choosing genetics, the automation of irrigation and fertigation,
humidity control systems and optimising harvest through bespoke solutions.

 

Taima was incorporated as a 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. Aurea Capital Partners
has a proven track record in sustainable investment, recently selling its
first investment in Spain to Goldman Sachs. Agritec currently holds 5% of the
issued share capital of Taima, and its shareholding will be incrementally
increased by an additional 15% based on the achievement of specific
milestones.

 

Avihu Tamir, Chief Executive Officer of Kanabo, commented:

 

"Securing this agreement marks a pivotal step in Kanabo's roadmap. The
high-quality supply chain that Agritec and Taima's partnership offers not only
ensures access to premium materials but also promises to generate profits and
enhance shareholder value for The Group. We're excited about this synergy and
the immense potential it holds.

 

"We look forward to supporting Agritec and their work with Taima."

 

The Project

 

The project will run in two stages, with Phase 1 expected to begin in the next
few months and last 12 months. Following completion of Phase 1, the Spanish
Agency of Medicines and Medical Devices ("AEMPS") will inspect the facility
and will grant a licence for production and manufacturing of Cannabis and its
products, subject to the successful passing of the inspection.

 

Upon receipt of the licence, Agritec is contracted to implement Phase 2 of the
project, which is expected to last between 8 and 12 months. The facility will
be fully operational at the conclusion of Phase 2 and will be capable of
producing up to 3,000 kgs of cannabis flowers annually.

 

Regarding revenue generated from the Agreement, while specific numbers are
pending finalisation of timelines, Agritec anticipates a significant financial
yield from this pivotal project. Concrete figures are expected to be announced
shortly but we are pleased to confirm that this contract represents a
substantial opportunity for enhanced revenue generation. Further information
on projected revenue will be shared in due course.

 

The Agreement marks an important growth stage for the Group's subsidiary and
will contribute to Kanabo's long term strategy to diversify and secure a
reliable supply chain. The facility will also adopt Kanabo's high-quality
manufacturing standards, ultimately facilitating patient access to the
highest-quality  products.

 

 

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 Ltd (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

 

About Kanabo Group Plc

Kanabo Group Plc (LSE:KNB) is a healthtech company committed to
revolutionising patient care through its innovative technology platform and
disruptive product offerings. Since its inception in 2017, 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. The Company is a leader in its field, focusing on improving patient
outcomes and providing more accessible healthcare experiences.

 

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.

 

In March 2023, Kanabo successfully launched its Pain Clinic, Treat It, under
the expert guidance of its technological and product expertise. Treat It
initially focuses on chronic pain management using plant-based medicine and
treatments that are currently unavailable through traditional channels.

 

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

 

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

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