Kanabo

growth-positive

Several UK-based or UK-listed cannabis companies, including Grow Group, Kanabo, MGC Pharmaceuticals, Celadon, and Chill Brands, released their latest financial figures. While revenue growth was unanimous, none of the companies made a profit, and all but one saw their losses increase. Grow Group reported strong revenue growth and a reduction in losses, and announced plans for a new capital raise. Kanabo saw a significant increase in revenues driven by an acquisition, but also experienced higher costs and operating losses. MGC Pharmaceuticals reported a revenue increase but also significant operating losses, leading to a reliance on further capital. Celadon Pharmaceuticals reported revenues from a clinical study but also increased operating losses and a net loss before tax. The companies will need to focus on tightening their purse strings and shifting operations towards profitability.

growth-positive

Kanabo Group has decided to pursue a strategic partnership with Materia, a distributor of medical cannabis and CBD wellness products, instead of acquiring the company. The partnership will support Kanabos strategy to commercialize medical cannabis products in the UK and Germany without diluting its shareholders or raising funds. Kanabo will gain access to Materias EU-GMP production facility in Malta and exclusive distribution rights in the UK for its new products. The details of the partnership are being finalized and will be disclosed in due course. Kanabos focus on product commercialization and expanding patient access to medicinal cannabis in the UK aligns with the partnership.

growth-positive

Kanabo Group has signed a Memorandum of Understanding with Forbe Ltd for the sale of CBD products in the Israeli market. Forbe will be responsible for marketing, distribution, and sales, while Kanabo will procure and process the products. The regulatory landscape for CBD in Israel is becoming increasingly positive, with plans to exclude CBD-containing substances from the Dangerous Drugs Ordinance. Israel is considered a significant addressable market for Kanabo and Forbe, estimated to be worth up to $475m by 2025. Kanabo Group recently acquired The GP Service Limited, a primary care telemedicine provider, to facilitate the growth of its digital and telemedicine business and establish a compliant channel for its medical products. Kanabo aims to become a leading company in the CBD consumer markets.