Two of the first medical cannabis companies in the London Stock Exchange announced a new partnership today.
According to Businesswire, Kanabo, the Israeli medical cannabis company that entered the LSE earlier this year, has secured a deal with Hellenic Dynamics, a Greek medical cannabis cultivation company that is set to enter the exchange market soon.
As the paper reports, the deal will see Kanabo buying up to 1000 kg per year of EU GMP certified cannabis flowers with pre-defined THC or CBD contents, subject to certain regulatory approvals, for subsequent extraction of medical standard oils.
Avihu Tamir, CEO of Kanabo, said: “The MoU with Hellenic and the subsequent investment is part of Kanabo’s strategy to quickly grow its core business whilst pursuing complementary, synergistic, acquisitions and investments in the medical cannabis space, leveraging our position as a quoted company.
“We welcome the enthusiastic support of investors for our approach.”
Kanabo, an Israeli company that started trading on the medical cannabis market in 2017, offers a special vaporising device, VapePod, that is designed for a wide variety of conditions, including insomnia and sleep disorders, pain management and PTSD.
In January, Mr Tamir told Canex that Kanabo wanted to enter the stock market to create the biggest medical cannabis company in Europe and to help the European market to grow.
Just recently, Canex reported that Hellenic Dynamics was on the verge of entering the stock exchange market as well.
Hellenic Dynamics, the medical cannabis giant that grows its plants in a 200,000-square metre ex-military bunker in Northern Greece, focuses on growing, exporting and selling THC-dominant dried cannabis flowers to markets like Germany, where there is demand for the products, and the flowers can be legally imported.
After announcing the partnership with Kanabo, Davinder Rai, Vice President of Hellenic Dynamics, added: “This agreement and investment in the business underscores the quality and scale of our specialist cultivation ambitions.
“We look forward to working closely with Kanabo, and this deal highlights the demand and growth opportunity for Hellenic in the European medical cannabis market.”