REG - Kanabo Group PLC - Update on the Acquisition of Materia

KanaboAnnouncement

20/05/2022 07:00

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RNS Number : 1830M  Kanabo Group PLC  20 May 2022

 

Kanabo Group Plc.

("Kanabo" or the "Company")

 

Update on Acquisition of Materia

 

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 that further to the
announcements made on 26 July 2021 and on 4 November 2021 regarding the
European businesses of 11157353 Canada Corp., which trades under the name of
Materia ("Materia"), the Company has now decided that its proposed transaction
with Materia will be most effectively executed through a strategic partnership
between the two independent companies, as opposed to the previously proposed
acquisition.

 

Under the proposed strategic partnership which is currently being finalised,
the Company hopes to be able to leverage Materia's assets without exposing its
shareholders to dilution and without needing to raise funds.

 

Kanabo and Materia are currently negotiating a partnership which inter-alia,
will provide the Company with:

·    Access to Materia's EU-GMP production facility in Malta via a
contract manufacturing agreement

·    Exclusive distribution rights in the UK for Materia's new products.

 

Arrangements for the servicing and repayment of the CAD$1 million secured loan
facility previously made available by the Company to Materia will be
incorporated into the new strategic partnership.

 

Further details of the future Strategic Partnership will be disclosed in due
course.

 

The Company intends to issue its annual results on the week commencing the
30th and at that time will provide further updates on its operations and
strategy.

 

Kanabo CEO Avihu Tamir commented, "We have concluded that the all-share
acquisition of Materia is no longer in the best interests of Kanabo given
prevailing market conditions and the alternatives available to us. However,
this envisaged strategic partnership will directly support the Company's key
strategy which is the commercialisation of its medical cannabis products in
the UK and Germany.

 

 

 

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.

 

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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