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Kanabo Group signs MOU with Forbe to sell CBD products in Israel

08:25, 9th March 2022
Francesca Morgan
Vox Newswire

[Source: Kanabo]

Kanabo Group (KNB FOLLOW) announced that it has signed a Memorandum of Understanding Forbe Ltd ("Forbe") for the sale of CBD products in the Israeli market.

The Israeli-based medicinal cannabis firm will be responsible for procuring and processing CBD products according to regulatory guidelines and Forbe will be responsible for marketing, distribution and sales as well as acquiring the required licences and import approvals.

Under the MOU, Forbe, which has two of the largest national health providers in Israel as its customers as well as the second largest pharmacy chain in the country, will work exclusively with Kanabo to distribute the products covered by the MoU.

Beyond the agreement with Forbe, Kanabo acknowledged the ‘increasingly positive’ state of the regulatory landscape for the sale of CBD in Israel. This follows an announcement made by the Ministry of Health this month in which it stated that it plans to exclude substances or products containing the CBD component from the Dangerous Drugs Ordinance.

In his resolution, Israel’s Minister of Health stated that over the next two years, the ministry will promote research and development activities, alongside the development of regulatory capacity within its departments, so that products containing CBD could be marketed in Israel.

As a result, Israel is therefore considered a significant addressable market for the Kanabo and Forbe collaboration with a deregulated market estimated to be worth up to US$475m in total by 2025, according to a Deloitte report prepared for the Manufacturers Association of Israel).

Commenting on the news, Madonna Hovel, CEO of Forbe told investors today: “I am delighted to sign this MoU with Kanabo thereby taking us into the emerging CBD markets in Israel. Kanabo Group plc has deep domain expertise in procuring and processing high-quality CBD products. I’m sure it will position Kanabo as CBD market leader by providing our customers’ needs for high-quality products and services in this high growth market in Israel.”

Avihu Tamir, CEO of Kannabo Group plc, added; “This MoU with Forbe Ltd is a key step in our stated strategy to become a leading Company within the CBD consumer markets.”

Tamir added that Kanabo sees Forbe Ltd “as a key strategic partner in Israel” as the company further develops and commercialises its range of CBD products “for millions of customers.”

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Last month, Kanabo Group announced it has acquired The GP Service Limited, a private primary care telemedicine provider, for a total consideration of c. £14m in an all share deal at a price of 12.65p which represents around 22% of the issued share capital of the Company.

The Israeli-based medicinal cannabis firm said it expects the acquisition to facilitate the ‘rapid growth’ of its existing digital and telemedicine business while also establishing ‘a new and fully compliant channel’ to market for the business’ products for medical patients, it explained.

‘Through improved access to these products, Kanabo Group hopes to make a substantial contribution to improving outcomes for thousands of patients in the UK and Europe,’ it said.

The GP Service, which offers the services of online doctors to help diagnose and treat common conditions using its internet-based consultation platform, is already an approved provider on the UK’s NHS digital framework for video and on-line medical consultations.

Patients can, for a set price of £39.99, get an appointment with a UK registered GP within half an hour and then get a prescription sent to one of 4,200 pharmacies within an hour for £7.49.

Kanabo said the service is able to electronically deliver prescriptions to this network of 4,200 pharmacies which includes major high street chains as well as independent pharmacies.

Kanabo intends to develop a platform to become one of Europe’s first digitally led and legally compliant providers for its products and wellness CBD services following regulatory approval.

Also last month, the pan-European medical cannabis company announced that it had successfully completed a £2.25 million fundraising via its broker Peterhouse Capital.

Commenting, Avihu Tamir said Kanabo had “a well-developed plan” to deploy the proceeds from the placing to proceed with complementary acquisitions to accelerate the company’s stated strategy to become one of Europe’s leading ‘product to patient’ medical providers.

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