Following the announcement of its acquisition by Materia, a leading processor and distributor of medical cannabis and CBD wellness products, Kanabo became the largest public cannabis company in Europe.
According to Kanabo, the first medical cannabis company to IPO on London Stock Exchange, the acquisition enables “supply chain control of manufacturing and distribution through Materia’s two EU GMP certified subsidiaries.”
Following the acquisition, Kanabo will control production, from the initial sourcing of raw materials and in-house manufacturing, all the way to distribution to pharmacies and the end consumer.
This includes direct entry into Germany, whose market size was over €200m in 2020, and is anticipated to remain the dominant market as the European market grows to a forecasted total size of €3.2bn by 2025.
Avihu Tamir, the Founder and CEO of Kanabo, said: “Materia’s unique innovative supply chain will provide strong distribution channels in the German market and offer new strategic partnerships with premium cultivators around the world.
“Together with Kanabo’s R&D and commercialisation capabilities, we will be able to develop new innovative delivery methods opening up an even bigger market potential.
“The enlarged group will become the biggest public cannabis company in Europe and will put us in a unique position as the multi-billion pound medical cannabis market starts to accelerate.”
Deepak Anand, CEO of Materia, added: “We are excited at the prospect of joining forces with Kanabo’s team.
“As the first medical cannabis company approved to list on the London Stock Exchange, Kanabo’s ambition to be a market leader matches our own and we believe that our combined infrastructure will generate significant value for our shareholders, partners, customers and patients.”