Deal includes commercially attractive rates to be negotiated
Raises £1m from investors
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.”
