Business
Update: New contract signed by Materia
Update: New contract signed by Materia.
About this update from Kanabo Group Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 8177I\n Kanabo Group PLC\n 17 August 2021\n \n \n \n \n 17 August 2021\n \n \n \n \n \n Kanabo Group Plc \n \n \n (\"Kanabo\" or \"the Company\")\n \n \n Update: New contract signed by Materia\n \n \n \n \n \n \n \n \n The Board of Kanabo notes the recent announcement published by Materia and are delighted that Materia's \n wholly-owned subsidiary Materia Deutschland GmbH (\"Materia Deutschland\"), has entered into an agreement with German medical cannabis manufacturer Eurox Pharma GmbH \n to distribute German-produced medical cannabis extracts.\n \n \n \n \n \n Extracts are the fastest growing format in Germany's medical cannabis market, exhibiting approximately +62% sequential quarterly growth at the beginning of this year.1 As at the end of 2020, medical cannabis extracts had been distributed across almost one-fifth of public German pharmacies.2\n \n \n \n \n \n According to the announcement, this agreement will importantly add \n a new line of \n cannabis extracts\n products for Materia Deutschland's curated portfolio and help\n accelerate the expansion of its distribution network across Germany, including new pharmacies that dispense extracts. \n \n \n \n \n \n Nick Pateras, Managing Director, Europe at Materia, said, \"This is a strategic step forward in our preparation for the market's increasing adoption of medical cannabis in the form of extracts. Our sales team is already trained and equipped to win new pharmacy customers with the addition of this new format.\"\n \n \n \n \n \n The full announcement can be found on Materia's website (\n http://www.materia.glob\n al).\n \n \n \n \n \n Further Details\n \n \n \n \n \n In an announcement published on 26 July 2021, Kanabo announced the signing of a non-binding term sheet with Materia, to acquire Materia's European businesses (the \"Proposed Transaction\"). The closing of the Proposed Transaction remains subject to (among other items) due diligence, the entering into of a definitive agreement, the receipt of all requisite third party approvals and the drafting and approval of a prospectus, as per the Listing Rules. The Company and Materia are currently undertaking the due diligence process and are working on reaching a definitive agreement. The Proposed Transaction, if completed, would cons...