July 26 (Reuters) – Kanabo Group Plc KNB.L mentioned on Monday it could purchase Canada-based hashish producer and distributor Materia for an undisclosed sum, sending shares within the London-listed medical marijuana agency up 8%.
The deal offers Kanabo an entry into the German market, the biggest for medical hashish in Europe, the place business analysis group Brightfield estimates gross sales to exceed $2 billion by 2025.
Kanabo Chief Govt Officer Avihu Tamir mentioned he expects the merger to end result within the largest public hashish firm within the UK and the European Union (EU), the place Materia just lately received a certification for its 34,000 sq ft Malta facility.
Based in 2018 by pharmaceutical and hashish business veterans, Materia’s essential focus has been on Germany, with executives calling it “market primary, two and three” in Might.
“We imagine that our mixed infrastructure will generate important worth for our shareholders, companions, clients and sufferers,” Materia CEO Deepak Anand mentioned in a press release.
Kanabo mentioned it plans to finish the Materia deal by means of two all-stock funds, one among which incorporates Materia reaching sure milestones akin to C$30 million ($23.85 million) gross sales in two years and its Maltese facility breaking even.
($1 = 1.2580 Canadian {dollars})
European medical marijuana gross sales set to risehttps://tmsnrt.rs/3x4QVte
(Reporting by Shariq Khan in Bengaluru; Modifying by Ramakrishnan M.)
(([email protected]; Twitter: @shariqrtrs;))
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