Business
Success for Kanabo Agritec with Contract Award
Success for Kanabo Agritec with Contract Award.
About this update from Kanabo Group Plc
[{"type":"text","content":"\n\n\n17 July 2023\n \nKanabo Group Plc\n(\"Kanabo\", the \"Group\" or the \"Company\")\n \nCommercial Success for Kanabo Agritec with Contract Award in Spain\n \nKanabo Group plc (LSE: KNB), a health-tech company focused on patient care with its innovative digital healthcare platform and medical cannabis treatment portfolio, announces that its 40% owned subsidiary, Kanabo Agritec Ltd. (\"Agritec\"), has signed a contract with Taima Growth S.L. (\"Taima\"). The contract is for the development of an indoor medical cannabis cultivation and processing facility in Madrid, Spain (\"the Agreement\").\n \nKanabo Agritec provides consulting services around facility planning, design and implementation for the production of medical cannabis. Agritec's expertise includes choosing genetics, the automation of irrigation and fertigation, humidity control systems and optimising harvest through bespoke solutions.\n \nTaima was incorporated as a SPV (special purpose vehicle) in 2019 and is seeking to establish a network of facilities for the cultivation and distribution of medical-grade cannabis in Spain. Notably, partners from Aurea Capital Partners, a Spanish investment firm focusing on renewable energy and sustainable agriculture, are invested in the project. Aurea Capital Partners has a proven track record in sustainable investment, recently selling its first investment in Spain to Goldman Sachs. Agritec currently holds 5% of the issued share capital of Taima, and its shareholding will be incrementally increased by an additional 15% based on the achievement of specific milestones.\n \nAvihu Tamir, Chief Executive Officer of Kanabo, commented:\n \n\"Securing this agreement marks a pivotal step in Kanabo's roadmap. The high-quality supply chain that Agritec and Taima's partnership offers not only ensures access to premium materials but also promises to generate profits and enhance shareholder value for The Group. We're excited about this synergy and the immense potential it holds.\n \n\"We look forward to supporting Agritec and their work with Taima.\"\n \nThe Project\n \nThe project will run in two stages, with Phase 1 expected to begin in the next few months and last 12 months. Following completion of Phase 1, the Spanish Agency of Medicines and Medical Devices (\"AEMPS\") will inspect the fa...