Kanabo, the first medical cannabis company to list on London’s top market, is set to buy a distributing company as it plots expansion into Europe.
The deal with Materia, a processor and distributor of medical cannabis and CBD products, will make Kanabo Europe’s largest public cannabis company.
Kanabo’s board has been eyeing new partnerships to boost Kanabo’s growth and market penetration for some time.
With an already established position in European markets, Materia has subsidiaries in Malta, Germany and the UK that will bolster Kanobo’s European network.
“Materia’s unique innovative supply chain will provide strong distribution channels in the German market and offer new strategic partnerships with premium cultivators around the world,” Kanabo’s founder and CEO Avihu Tamir said.
“The enlarged group will become the biggest public cannabis company in Europe and will put us in a unique position as the multi-billion-pound medical cannabis market starts to accelerate.”
Cannabis has taken off in North American markets but has yet to see the same kind of uptake in Europe.
Despite the slower uptake, Europe’s cannabis market is forecast to swell to €3.2bn by 2025, according to Prohibition Partners latest European cannabis report.
Materia’s Malta facility is able to import cannabis flower from its supply network and process it into EU certified medical cannabis for European export.
The facility is worth some €36m, which will fall under Kanabo’s wing once the deal is completed.