LONDON--(BUSINESS WIRE)--Kanabo Group Plc, the medicinal cannabis company which recently successfully launched on London Stock Exchange (LSE: KNB), has entered a deal to partner with Hellenic Dynamics S.A, a medical cannabis cultivation company with a substantial cultivation facility in Northern Greece. Under the terms of the Memorandum of Understanding between the two parties, Kanabo will buy up to 1000 kg per year EU GMP certified cannabis flowers with pre-defined THC or CBD contents, subject to certain regulatory approvals, for subsequent extraction of medical standard oils.
Kanabo raised gross proceeds of £1million through the placing of 4,545,454 Ordinary Shares at a price of 22 pence per share with a range of new and existing investors. The Company has also announced that it has acquired an interest over £750,000 worth of shares in Hellenic Dynamics which the Company will receive as part of the proposed listing of Hellenic Dynamics.
Hellenic Dynamics has recently announced plans to list on the London Stock Exchange through a reverse take-over of an AIM-listed cash shell. Kanabo understands that this Prospective RTO is well advanced with further announcements expected shortly. The structure of Kanabo’s acquisition of interest in Hellenic is reflective of this near-term listing expectation and the desire of both parties to see this investment as part of a broader potential relationship between the two companies.
Avihu Tamir, CEO of Kanabo commented: "The MoU with Hellenic and the subsequent investment is part of Kanabo's strategy to quickly grow its core business whilst pursuing complementary, synergistic, acquisitions and investments in the medical cannabis space, leveraging our position as a quoted company. We welcome the enthusiastic support of investors for our approach.”
Davinder Rai, Vice President of Hellenic Dynamics, commented: “This agreement and investment in the business underscores the quality and scale of our specialist cultivation ambitions. We look forward to working closely with Kanabo and this deal highlights the demand and growth opportunity for Hellenic in the European medical cannabis market.”
ABOUT KANABO GROUP PLC:
Kanabo is an industry leader in product development and commercialisation of both cannabis-derived products for medical patients and THC-free products for CBD consumers. It develops high-quality medical cannabis extract formulas, medical device vaporisers, and other innovative delivery methods. Validation activities are conducted at Kanabo’s research lab at the Weizmann Science Park in Israel. With a primary focus on the German and UK Markets, Kanabo has already begun penetrating the European Market, and is positioned to scale up to meet growing market demand and projected sales. Currently, Kanabo is selling its line of CBD formulas for inhalation in the UK and Germany and has agreements with distributors in the pharmaceutical and OTC sectors already in place.
ABOUT Hellenic Dynamics S.A.:
Hellenic Dynamics’s main objective is to cultivate, produce, and extract tetrahydrocannabinol (“THC”) dominant strains of dried medical cannabis flowers and flower extracts. These will be cultivated in its 200,000 square meter facility located near Thessaloniki in Northern Greece and are intended for export into the emerging medical cannabis market in Europe. The first medical cannabis flowers are expected to be cultivated in Q3 2021 with commercial sales expected to occur in Q4 2021. The Company’s strategy is to then expand its total cultivation area in phases, in line with European demand. Additionally, the Board anticipates that further distribution lines into other European markets will begin in early 2022.