Kanabo Group PLC Placing, Investment & MoU with Hellenic Dynamics (5106Z)
May 24 2021 - 1:00AM
UK Regulatory
TIDMKNB
RNS Number : 5106Z
Kanabo Group PLC
24 May 2021
24 May 2021
Kanabo Group Plc
("Kanabo" or "the Company")
GBP1 million Premium Placing,
Pre-IPO Investment and a Strategic MoU Partnership
with Hellenic Dynamics S.A.
Highlights
-- Placing to raise GBP1 million at an issue price of 22 pence per share (the "Placing Price")
-- Placing Price represents a 10 per cent. premium to the
closing mid-price of the Company's ordinary shares on 20 May
2021.
-- Pre-IPO acquisition of interest over GBP750,000 worth of
shares in Hellenic Dynamics S.A ("Hellenic" or "Hellenic
Dynamics"), a medical cannabis cultivator seeking a near-term
listing on the London Stock Exchange;
-- The investment is part of a wider strategic partnership
between the Company and Hellenic Dynamics S.A.
Details
Kanabo Group Plc (LSE:KNB) announces today that it has raised
gross proceeds of GBP1million through the placing of 4,545,454
Ordinary Shares (the "Placing") at a price of 22 pence per share
("Placing Price") with a range of new and existing investors. The
Placing Price represents a 10 per cent. premium to the closing
mid-price of the Company's ordinary shares on 20 May 2021 and a
3.45 per cent discount to the 30-day volume weighted average price
(VWAP) of 22.8 pence per Ordinary Share
Peterhouse Capital has acted as sole corporate broker to the
Placing.
Additionally, Kanabo announces the signing of a Memorandum of
Understanding with Hellenic Dynamics S.A. ("Hellenic Dynamics"), a
medical cannabis cultivation company, in order to evaluate a
potential off-take agreement. Hellenic Dynamics is a medical
cannabis cultivation company with a substantial cultivation
facility in Northern Greece, whose intention is to grow genetically
unique strains of dried medical cannabis flowers. Under the terms
of the MoU, it is envisaged that Kanabo will purchase up to 1000 kg
per year EU GMP certified cannabis flowers with pre-defined THC or
CBD contents, subject to certain regulatory approvals, for
subsequent extraction of medical standard oils. The price for the
goods will be negotiated between the buyer and the seller based on
the specifications, products and quantities required at
commercially attractive rates having regard to market prices at the
time of sale.
In order to cement the relationship between Kanabo and Hellenic
Dynamics, the Company announces that it has acquired an interest
over GBP750,000 worth of shares in Hellenic Dynamics which the
Company will receive as part of the proposed listing of Hellenic
Dynamics.
Hellenic Dynamics has recently announced plans to list on the
London Stock Exchange through a reverse take-over of an AIM-listed
cash shell (the "Prospective RTO"). Kanabo understands that this
Prospective RTO is well advanced with further announcements
expected shortly.
The structure of Kanabo's acquisition of interest in Hellenic
Dynamics is reflective of this near-term listing expectation and
the desire of both parties to see this investment as part of a
broader potential relationship between the two companies. The
number of shares to be received by Kanabo will be calculated at the
time of the Prospective RTO to ensure that the Kanabo investment
will be de-facto made at a minimum 30% discount to the Prospective
RTO listing price.
Avihu Tamir, CEO of Kanabo commented: "The MoU with Hellenic
Dynamics and the subsequent investment is part of Kanabo's strategy
to quickly grow its core business whilst pursuing complementary,
synergistic, acquisitions and investments in the medical cannabis
space, leveraging our position as a quoted company. We welcome the
enthusiastic support of investors for our approach."
Davinder Rai, Vice President of Hellenic Dynamics, commented:
"This agreement and investment in the business underscores the
quality and scale of our specialist cultivation ambitions. We look
forward to working closely with Kanabo and this deal highlights the
demand and growth opportunity for Hellenic Dynamics in the European
medical cannabis market."
For further information, please visit
http://www.kanabogroup.com/ or contact the following:
Kanabo Group Plc
Tel: +(972)52-3173-633
press@kanabogroup.com
Meirav Horn
Peterhouse Capital Limited (Financial Adviser)
Tel: +44 (0)20 7469 0930
Eran Zucker / Guy Miller / Allie Feuerlein
Peterhouse Capital Limited (Corporate Broker)
Lucy Williams / Charles Goodfellow
About Kanabo
Kanabo aims to be an industry leader in product development and
commercialisation of both cannabis-derived products for medical
patients and THC-free products for CBD consumers. The company
develops high-quality medical cannabis extract formulas, medical
device vaporisers, and other innovative delivery methods.
Validation activities are conducted at Kanabo's research lab at the
Weizmann Science Park in Israel. With a primary focus on the German
and UK Markets, Kanabo has already begun penetrating the European
Market, and is positioned to scale up to meet growing market demand
and projected sales. Currently, Kanabo is selling its line of CBD
formulas for inhalation in the UK and Germany and has agreements
with distributors in the pharmaceutical and OTC sectors already in
place.
About Hellenic Dynamics
Hellenic Dynamics's main objective is to cultivate, produce, and
extract tetrahydrocannabinol ("THC") dominant strains of dried
medical cannabis flowers and flower extracts. These will be
cultivated in its 200,000 square meter facility located near Kilkis
in Northern Greece and are intended for export into the emerging
medical cannabis market in Europe. The first medical cannabis
flowers are expected to be cultivated in Q3 2021 with commercial
sales expected to occur in Q4 2021. The Company's strategy is to
then expand its total cultivation area in phases, in line with
European demand. Additionally, the Board anticipates that further
distribution lines into other European markets will begin in early
2022.
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