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IN BRIEF: Kanabo shares dive after cannabis subsidiary announcement

16th Jun 2022 12:04

Kanabo Group PLC - Tel Aviv-based medical cannabis company - Forms Kanabo Agritec Ltd, a subsidiary for medical cannabis cultivation in Spain in which Kanabo holds 40% of shares.

Agritec signs a memorandum of understanding for the production project of around 8,818 pounds of indoor medical cannabis. The aim is to "monetise the company's intellectual property," Kanabo explains. "Agritec's sole purpose is to enter into agreements with third parties at minimal cost to leverage the company's intellectual property for the cultivation, processing, and production of cannabis products," it adds.

Agritec will provide Kanabo with "complementary near-term revenue opportunities", the company explains, and "will offer improved security of cannabis supply through a diverse range of suppliers, who will all adopt Kanabo's high-quality manufacturing standards without Kanabo having to fund or become directly involved in cannabis cultivation."

Current stock price: 3.25 pence, down 10% on Thursday

12-month change: down 83%

By Tom Budszus; [email protected]

Copyright 2022 Alliance News Limited. All Rights Reserved.


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