Kanabo, the first medical cannabis company to be listed on the London Stock Exchange, has confirmed the acquisition of Materia, a medical cannabis and wellness company focused on the European market.
Materia is well established in the European market, with subsidiaries in Malta, Germany and the United Kingdom. After the acquisition, Kanabo will control production, from the initial sourcing of raw materials and in-house manufacturing, to distribution to pharmacies and to the end consumer. This includes direct entry into Germany, whose market size was over 200 million euros last year, and is expected to remain the dominant market as the European market grows to reach an expected total size of 3, 2 billion euros by 2025 according to Prohibition Partners.
Deepak Anand, CEO of Materia, said: “We are very happy to join forces with the Kanabo team. As the first medical cannabis company approved to be listed on the London Stock Exchange, Kanabo’s ambition to be a market leader matches our own and we believe our combined infrastructure will generate significant value for our shareholders, partners. , clients and patients. “
Materia’s Maltese subsidiary operates a state-of-the-art EU-GMP certified facility, strategically positioned for the processing of medical cannabis flower and oils.
Thanks to this facility, Materia Malta is able to import cannabis flower from its global network of growers and transform it into EU GMP certified medical cannabis for subsequent export to distributors in Europe. Materia Malta also intends to use its facilities and know-how to produce medical cannabis extracts. The facility’s current flower production capacity is 6,000 kg per year, representing a potential sale value of EUR 36 million based on a combined average sale price in several key European markets.
Kanabo was one of the first cannabis companies to be listed on the London Stock Exchange earlier this year. Its flagship product is the VapePod, which delivers measured doses of medical cannabis extracts via a high-tech vaporizer.
Kanabo’s research will be marketed through Materia, including formulations developed for Kanabo’s VapePod device intended to treat specific medical problems such as insomnia, post-traumatic stress disorder, neuropathic pain and anxiety.
In Germany, the largest European medical cannabis market, Materia has pharmaceutical wholesaler status, which allows it to import and sell medical cannabis products to German pharmacies. Materia has made deals with numerous suppliers and has been distributing its medical cannabis portfolio to pharmacies for over a year.
In addition, Materia’s UK subsidiary operates in the wellness sector as a distribution platform, selling several top brands through Handpicked CBD, one of the largest e-commerce marketplaces in CBD in the UK. Kanabo will rely on Handpicked CBD to acquire customers for its own line of CBD products and to fuel its future pipeline of innovations.
This acquisition will allow Kanabo to build on the significant progress made this year, including a supply agreement with the Greek cultivation facility Hellenic Dynamic, a new EU-GMP production line in partnership with Pure Origin and an agreement with PharmaCann for a one-of-a-kind production line for VapePod cartridges.
The company also recently announced the expansion of its partnership with the LYPHE Group, facilitating the delivery of Kanabo’s medicinal cannabis formula to the UK this month.