Kanabo to acquire European medical cannabis business

Shares of UK-based medicinal cannabis firm Kanabo Group (LSE: KNB) were up 9.6% at 16.44 pence early afternoon today, after it announced the proposed acquisition of the European businesses of 11157353 Canada Corp, which trades under the name of Materia.

The acquisition is to be fully satisfied through the issue of Kanabo shares. As part of the proposed transaction, Kanabo will also make a loan facility available to Materia, as described below.

Materia owns a European Union good manufacturing practices (GMP) certified facility in Malta and a licensed medical cannabis wholesaler in Germany, giving Kanabo access to hundreds of pharmacies across Germany. The combined entity will commercialise new-to-market products for European patients and consumers