Vela Technologies #VELA – Investee Company – Kanabo – Success for Kanabo Agritec with Contract Award July 17, 2023 – Posted in: Vela Technologies Plc (VELA) – Tags: , , ,

 

Kanabo Group plc (LSE: KNB), a health-tech company focused on patient care with its innovative digital healthcare platform and medical cannabis treatment portfolio, announces that its 40% owned subsidiary, Kanabo Agritec Ltd. (“Agritec”), has signed a contract with Taima Growth S.L. (“Taima”). The contract is for the development of an indoor medical cannabis cultivation and processing facility in Madrid, Spain (“the Agreement”).

Kanabo Agritec provides consulting services around facility planning, design and implementation for the production of medical cannabis. Agritec’s expertise includes choosing genetics, the automation of irrigation and fertigation, humidity control systems and optimising harvest through bespoke solutions.

Taima was incorporated as a SPV (special purpose vehicle) in 2019 and is seeking to establish a network of facilities for the cultivation and distribution of medical-grade cannabis in Spain. Notably, partners from Aurea Capital Partners, a Spanish investment firm focusing on renewable energy and sustainable agriculture, are invested in the project. Aurea Capital Partners has a proven track record in sustainable investment, recently selling its first investment in Spain to Goldman Sachs. Agritec currently holds 5% of the issued share capital of Taima, and its shareholding will be incrementally increased by an additional 15% based on the achievement of specific milestones.

Avihu Tamir, Chief Executive Officer of Kanabo, commented:

“Securing this agreement marks a pivotal step in Kanabo’s roadmap. The high-quality supply chain that Agritec and Taima’s partnership offers not only ensures access to premium materials but also promises to generate profits and enhance shareholder value for The Group. We’re excited about this synergy and the immense potential it holds.

“We look forward to supporting Agritec and their work with Taima.”

The Project

The project will run in two stages, with Phase 1 expected to begin in the next few months and last 12 months. Following completion of Phase 1, the Spanish Agency of Medicines and Medical Devices (“AEMPS”) will inspect the facility and will grant a licence for production and manufacturing of Cannabis and its products, subject to the successful passing of the inspection.

Upon receipt of the licence, Agritec is contracted to implement Phase 2 of the project, which is expected to last between 8 and 12 months. The facility will be fully operational at the conclusion of Phase 2 and will be capable of producing up to 3,000 kgs of cannabis flowers annually.

Regarding revenue generated from the Agreement, while specific numbers are pending finalisation of timelines, Agritec anticipates a significant financial yield from this pivotal project. Concrete figures are expected to be announced shortly but we are pleased to confirm that this contract represents a substantial opportunity for enhanced revenue generation. Further information on projected revenue will be shared in due course.

The Agreement marks an important growth stage for the Group’s subsidiary and will contribute to Kanabo’s long term strategy to diversify and secure a reliable supply chain. The facility will also adopt Kanabo’s high-quality manufacturing standards, ultimately facilitating patient access to the highest-quality  products.

 

Enquiries:

 

Kanabo Group plc

Avihu Tamir, Chief Executive Officer

Assaf Vardimon, Chief Financial Officer

Ian Mattioli, Non-Executive Chair of the Board

via Vigo Consulting

+44 (0)20 7390 0230

Peterhouse Capital Ltd (Financial Adviser and Broker)

Eran Zucker / Lucy Williams / Charles Goodfellow

+44 (0)20 7469 0930

Vigo Consulting (Financial Public Relations/Investor Relations)

Jeremy Garcia / Fiona Hetherington / Verity Snow

kanabo@vigoconsulting.com