Kanabo Group jumps as it signs agreement with Pure Origin
(KNB ) has signed an agreement with Pure Origin and its affiliates ("Pure Origin"), to utilise their significant expertise in best practices for EU GMP manufacturing.
The Group, which distributes cannabis-derived products for medical patients, explained how Good Manufacturing Practices systems are created and authorised by the government to regulate production, verification and validation of drugs, food and/or medical devices, ensuring that finished products are effective and safe for market distribution.
Under the agreement Pure Origin and its affiliates will manufacture, package and supply Kanabo's CBD wellness product line from their EU GMP manufacturing facility in Wales.
As part of the deal, Kanabo informed investors that it can ensure consumers ‘will continue to receive the highest quality of consistent, traceable, safe, and compliant products.’
Pure Origin and Kanabo will also establish a dedicated production line for the VapePod's CBD Wellness formulas that will use Kanabo's equipment, production protocols and IP.
Shares in Kanabo Group were trading 6.38% higher this morning at 20p following the news.
Under the deal, Kanabo will supply raw materials to Pure Origin for the preparation of CBD formulations and final packaging. The current production line will have an initial capacity of 44,000 units a month with the ability to further increase production when necessary.
This new agreement marks the end of the period of pilot sales which commenced upon the company’s admission to the LSE and is the prelude to a full product launch internationally.
The pilot sales, which has lasted a period of three months, has provided several important performance measures in relation to the sale of Kanabo's retail CBD products in the UK.
In particular, the outcome of the pilot has formed the second phase of Kanabo's strategy to increase revenue from the sale of CBD products, and Kanabo's future long-term strategy involves continued research and development activities to develop a range of Unlicensed Medical Cannabis Oils, which will be sold as unlicensed medical products, it highlighted.
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