Kanabo Group Plc. (LON: KNB), a leading medical Cannabis and healthcare company focused on R&D, the provision of medical grade cannabis-based products and telehealth for patients, has announced the formation of a new, partly owned, subsidiary to offer the Company’s unrivalled intellectual property in the cultivation and production of medical Cannabis products.
Adding to its existing portfolio and leveraging Kanabo Group’s years of industry-leading expertise in the commercialisation of Cannabis, the new subsidiary, Kanabo Agritec Ltd. (“Agritec”), will enter into agreements with customers to offer consulting advice and support on cultivation, processing and production of medical Cannabis products, to organisations and entrepreneurs entering or already active in the lucrative and growing Cannabis market.
The new subsidiary, in which Kanabo Group plc has a 40% stake via its wholly owned R&D company, Kanabo Research Ltd, has secured its first MoU, for the development of a 4,000kg indoor medical Cannabis cultivation project in Spain. Under the terms of its customer agreements, Agritec will also have the option of preferential access to the supply and part ownership of the facilities resulting from such projects.
Agritec’s three other shareholders are co-founders Ophir Shimshi and Eilon Bdil, experts in Cannabis regulation and cultivation and R. P. Growing Technologies Ltd., who each hold 20% of the issued share capital in Agritec.
Specifically, Agritec customers will benefit from Kanabo’s unrivalled expertise via multiple, turnkey consulting services:
This announcement represents a win-win-win situation for Kanabo Group, its new Agritec customers and consumers alike.
Avihu Tamir, CEO, Kanabo Group plc explains: “We are truly excited by today’s announcement. Agritec provides Kanabo Group plc an opportunity to realise the value of our extensive, existing intellectual capital in medical Cannabis cultivation and production, providing near-term consulting revenues. Secondly, it provides us a way to diversify, secure and quality control our supply of medical-grade Cannabis that will always meet our exacting standards, avoiding any wasted margin from product that does not meet the grade. In short, the new venture provides all the benefits and value of owning the cultivation supply chain, without the Capex and Opex requirement of building a cultivation operation ourselves. Furthermore, Kanabo consumers will be guaranteed a consistent, highest quality supply of medical Cannabis products, at all times.”
Agritec’s management and founders are established leaders in the development of Cannabis facilities, having established multiple cultivation and processing operations worldwide, prior to the launch of Agritec Ltd.
Ophir Shimshi, CEO, Agritec Ltd, commented: “We are excited to combine Agritec’s team experience with Kanabo’s extensive R&D knowledge and expertise, to bring this powerful, full-service consultancy offering to market. Agritec’s clients will benefit from Kanabo’s immensely valuable, tried, tested and proven playbook. Our range of consulting services deliver every strategic and operational consideration required by enterprises and entrepreneurs who wish to take advantage of the immense growth opportunities this market has to offer.”
For further information, please visit http://www.kanabogroup.com/
