Europe-based Kanabo Group Plc (LSE: KNB), the first medical cannabis company to IPO on London Stock Exchange, has signed a letter of intent to acquire Materia – a processor and distributor of medical cannabis and CBD products across Europe for an undisclosed amount. The merger would create the largest publicly traded cannabis company in the EU.
According to management, Materia infrastructure supplements that of Kanabo, and will be crucial to expanding and strengthening the company’s existing supply value chain in the medical cannabis and CBD realms.
“We are excited at the prospect of joining forces with Kanabo’s team. As the first medical cannabis company approved to list on the London Stock Exchange, Kanabo’s ambition to be a market leader matches our own and we believe that our combined infrastructure will generate significant value for our shareholders, partners, customers and patients,” Materia’s Deepak Anand told Benzinga.
Pre-merger, Kanabo’s valuation stands slightly below $100 million. With a focus on distributing cannabis-derived products for medical patients and non-THC products for CBD consumers, Kanabo has conducted extensive research & development in order to produce high-quality cannabis extract formulas, innovative medical-grade vaporizers and various non-smoking consumption solutions.