Kanabo Group signs €9m partnership agreement with MedoCann Pharma
(KNB ) has signed an €9m agreement with MedoCann Pharma Ltd. to develop new products with exclusive distribution rights into the German and UK medical cannabis markets.
The medicinal cannabis firm focused on cannabis-derived products which made its debut on London’s main market in February 2021 said the deal includes exclusive rights to distribute the Co-Developed Products into both the UK and German medical cannabis markets.
In particular, the partnership agreement between Kanabo and Medocann will focus on the co-development of new and novel strains from flowers and extracts made for specific medical indications through the combination of Kanabo’s preclinical data on the effect of cannabis on different illnesses and Medocann’s genetics bank, breeding and strain development expertise.
The strains and extracts will be used to launch new co-developed medical cannabis products.
The agreement stipulates that Medocann and Kanabo will use ‘commercially reasonable efforts’ to have the Co-Developed Products available for sale in the target markets, based on 1,000kg of cannabis raw material over the first three years of the agreement, conditional on the existence of all required import and export regulatory documents, Kanabo explained.
The price at which Co-Branded Products will be sold, which will in any event be at least the then-current premium market price,t is estimated at EUR 9.00 (Nine Euros) per gram.
Medocann is an established producer of medical-grade cannabis products with an indoor hydroponic facility located in central Israel and a library of proprietary cannabis genetics all grown in a fully controlled environment, without the use of pesticides or insecticides.
Kanabo explained that Medocann holds a IMC GAP license for commercial propagation as well as commercial cultivation and is currently selling their premium products in Israel.
Commenting on the partnership, CEO of Medocann, Asaf Sella, said: “The genetics and the technology used to cultivate medical cannabis make a huge difference in the safety, the quality and the consistency of the medicine patients receive. We are delighted to partner with Kanabo, together we will develop new strains to treat specific indications and provide premium medical cannabis products, all originating in Medocann’s indoor, hi-tech facility.”
Avihu Tamir, CEO of Kanabo added: “Medocann’s hydroponic, precisely-grown cannabis is considered the best in Israel and is the only one cultivated without the use of Pesticides.
He added, “Kanabo aims to bring these unique strains to patients in the UK and German markets through the Materia Malta production facility.”
Since its flotation to the London stock exchange, shares in Kanabo Group have seen an over two-fold increase from its entry price of 6.5p to close on Wednesday afternoon at 15.5p.
In a recent interview with CNBC, CEO Avihu Tamir discusses Kanabo’s listing on the London Stock Exchange and the market opportunity for medicinal cannabis in the U.K. and Europe.
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