Business
Update on Materia Acquisition
Update on Materia Acquisition.
About this update from Kanabo Group Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 2756R\n Kanabo Group PLC\n 04 November 2021\n \n \n \n \n \n Kanabo Group PLC\n \n \n (\"Kanabo\" or the \"Company\")\n \n \n \n \n \n \n \n \n Update on Acquisition of Materia \n \n \n & Further Investment \n \n \n \n \n \n Further to the announcement of 26 July 2021, \n Kanabo Group Plc (LSE:KNB), a medical cannabis R&D Company that focuses on the distribution of cannabis-derived products for medical patients and wellness CBD consumers, announces that it has finished the majority of its due diligence work as part of the proposed acquisition of the European businesses of 11157353 Canada Corp. (the \"Proposed Transaction\"), which trades under the name of Materia (\"Materia\").\n \n \n \n \n \n Kanabo and Materia have therefore signed a revised term sheet which includes binding elements (\"Head of Terms\"), and the parties consider this to be an important step towards completion of the Proposed Transaction. As previously announced, the Proposed Transaction contemplates the full acquisition of Materia's European business, including its Maltese EU GMP certified facility, German medical cannabis wholesaler and UK CBD e-commerce platform.\n \n \n \n \n \n HIGHLIGHTS\n \n \n · \n Agreement reached on majority of commercial terms of the proposed acquisition;\n \n \n · \n Due diligence on Materia substantively complete;\n \n \n · \n All share acquisition agreed, valuing Materia at CAN$20MM initially (c.£12million*), with up to an additional CAN$40MM (c.£24million*) payable in new Kanabo shares, upon attainment of post completion performance milestones;\n \n \n · B\n oth the Initial Consideration and the Earn-Out Consideration to be satisfied through the issue of new ordinary shares in the Company\n ;\n \n \n \n \n \n \n Update of the Proposed Acquisition\n \n Kanabo has completed the majority of the due diligence on Materia and commenced the work on the regulatory documents required to complete the Proposed Transaction. The Parties have also begun planning the integration of the companies once the transaction is completed.\n \n \n Whilst this announcement contains details of the Term Sheet, the Proposed Transaction is still subject inter alia to the agreement of formal documentation and conditional on, among other things, the receip...