Kanabo Group says Materia Malta has now commenced sales in Europe
(KNB ) said a subsidiary of Materia, Materia Malta, has commenced sales in Europe of the first medical cannabis flower produced at its EU GMP certified manufacturing site.
The Israeli-based medicinal cannabis company, which made its debut on London’s main market in February 2021, announced its proposed acquisition of Materia, a European-focused medical cannabis and CBD company, as well as its European businesses, back in July 2021.
Last month, Kanabo told investors that it had finalised the majority of its due diligence work as part of this proposed acquisition including the signing of a revised term sheet with the Group. Both parties consider this ‘an important step’ towards completion of the proposed transaction.
The proposed transaction is still subject, inter alia, to the agreement of formal documentation and conditional on, among other things, the receipt of all necessary regulatory consents.
Materia is an independent processor and distributor of medical cannabis and CBD wellness products focusing on the European market, with subsidiaries in Malta, Germany and the UK.
Following the acquisition, Kanabo will control production, from the initial sourcing of raw materials and in-house manufacturing, to distribution to pharmacies and the end consumer.
The full acquisition covers Materials European business, including its Maltese EU GMP certified facility, German medical cannabis wholesaler and UK CBD e-commerce platform.
Today, Kanabo said Materia’s wholly-owned subsidiary, Materia Malta, has commenced the sales of its inaugural product named “Carbasi Verde”. The medicinal cannabis flower was released with a potency of 21.7% THC following successful completion of Materia Malta’s first production cycle, which included hand trimming ‘to ensure the best quality for patients,’ it said.
Materia Malta’s Carbasi Verde is now available at pharmacies across Malta, with subsequent shipments planned for Germany and the UK. The product has already been registered on the narcotics licence of Materia Deutschland GmbH ahead of its import into the German market.
“This journey began in earnest over two years ago, so we’re elated to be offering patients Materia manufactured and branded medical cannabis,” said Nick Pateras, Managing Director in Europe of Materia.
Commenting, he added that: “Our Maltese site is truly state-of-the-art, and with our team’s deep pharmaceuticals expertise we’re confident that Materia Malta will become one of the most important production facilities in Europe’s cannabis supply chain.”
Addressing shareholders this morning, Avihu Tamir, Chief Executive Officer of Kanabo Group commented; “Materia’s pace of progress remains remarkable. Subject to completion of the merger, the facility in Malta will enable
Kanabo’s enlarged group to broaden its distribution across Europe and solidify our plan for a complete supply and distribution line.”
On Wednesday, Kanabo said its CBD and nicotine formula is near to becoming an approved patent in the US, UK, and the EU as it has progressed into its next phase of development.
Before Wednesday, Kanabo’s CBD-based ‘smoking cessation’ formula was in the Patent Cooperation Treaty (PCT) phase, a process which assists in seeking patent protection internationally for their inventions. The Company’s formula has now moved into the National Phase, the final phase before the asset can become an internationally approved patent.
The Company explained to its shareholders that its CBD-based formula can be used to treat nicotine and tobacco addiction, and that evidence suggests that the programme significantly reduces physical and psychological nicotine withdrawal effects by an average of 70%.
Specifically, Kanabo’s formula is targeted at both the traditional smoking and e-cigarettes markets which together are expected to reach £50m over the coming years, the Group noted.
Earlier this year, Kanabo told investors that it had developed and launched the first medical cannabis vape formula in the United Kingdom aimed at initially targeting pain management.
Its VapePod product, which is based on a formula developed and tested in Israel, has been produced in a certified GMP medical facility in full compliance with ISO13485, a standard that is often seen as the first step in achieving compliance with European regulatory requirements.
Avihu Tamir, CEO Kanabo, said, “Our unique patent pending CBD formulations and controlled and consistent delivery device, the VapePod, represents an excellent opportunity for governments to quickly end the reliance on tobacco for millions of citizens worldwide.
He added that, “Our tests show a dramatic reduction in nicotine consumption, whether in cigarettes or e-cigarettes, which can only be good news for health services around the world.”
The Company’s application covers ‘a unique new formula of specific naturally derived terpenes to allow the application of a very consistent and reproducible, high concentration of CBD throughout the life of the Kanabo cartridge.’ Initially, CBD is combined with Nicotine, which is then reduced over several weeks until there is zero Nicotine presence, it explained.
Kanabo Group said its new IP offers ‘a novel and effective way; to reduce smoking and potentially complete withdrawal from Nicotine and e-cigarette addiction’ at a time when countries worldwide are continuing to seek measures to reduce tobacco smoking.
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