[source: Kanabo]
The pan-European medical cannabis firm Kanabo Group (KNB ) has acknowledged a positive 4Q21 trading statement of Materia, a European-focused independent processor and distributor of medical cannabis and CBD wellness products which Kanabo intends to acquire.
Kanabo, an Israeli-based medicinal cannabis company which made its debut on London’s main market in February 2021, said Materia’s statement reflects ‘a successful quarter.’
Last month, Materia’s wholly owned subsidiary Materia Malta commenced sales of the first medical cannabis flower produced at its EU GMP certified manufacturing site in Europe.
The first volume production run has sold out within the first two weeks of sales commencing, with distribution partners returning to replenish inventory ‘on multiple occasions’, it noted.
The Company explained that the trading statement released today reflects a successful quarter of performance for Materia, with Materia Deutschland GmbH continuing to expand its distribution network and achieving its strongest quarter of pharmacy sales for the year.
At a group level, Materia’s 4Q sales grew by over 48% over 3Q (based on unaudited financial records for 2021), an acceleration of the company’s revenue growth in previous periods.
Materia said it anticipates the achievement of more operational milestones in 2022, including the company’s first sale into Germany of medical cannabis manufactured by Materia Malta.
Materia said it is also targeting other important European markets such as the UK, as well as a broadening of its product portfolio to include new formats such as cannabis extracts.
Kanabo Group also reiterated in this morning’s statement that it had recently finished the majority of its due diligence work as part of the proposed acquisition of the European businesses of 11157353 Canada Corp, which trades under the name of Materia (“Materia”).
The proposed transaction contemplates the full acquisition of Materia’s European business, including, inter alia, its Maltese EU GMP certified facility and UK CBD e-commerce platform.
The proposed transaction is still subject inter alia to the agreement of formal documentation and conditional on, among other things, the receipt of all necessary regulatory consents.
Last month, Kanabo said a subsidiary of Materia, Materia Malta, had started sales in Europe of the first medical cannabis flower produced at its EU GMP certified manufacturing site.
The Company announced its proposed acquisition of Materia, a European-focused medical cannabis and CBD company, as well as its European businesses, back in July 2021.
In November, Kanabo noted that it had finalised the majority of its due diligence work as part of this proposed acquisition including the signing of a revised term sheet with the Group. Both parties consider this ‘an important step’ towards completion of the proposed transaction.
The proposed transaction is still subject, inter alia, to the agreement of formal documentation and conditional on, among other things, the receipt of all necessary regulatory consents.
Materia is an independent processor and distributor of medical cannabis and CBD wellness products focusing on the European market, with subsidiaries in Malta, Germany and the UK.
Following the acquisition, Kanabo will control production, from the initial sourcing of raw materials and in-house manufacturing, to distribution to pharmacies and the end consumer.
The full acquisition covers Materials European business, including its Maltese EU GMP certified facility, German medical cannabis wholesaler and UK CBD e-commerce platform.
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