Kanabo, and Israeli company focused on the distribution of Cannabis-derived products for medical patients, and non-THC products for CBD consumers, and the first cannabis business to IPO on the London Stock Exchange, has recently signed a deal with Hellenic Dynamics, which has a 200,000 square meter growing facility located in Kilkis, Northern Greece.
As per the deal, The Greek cannabis growing company will be able to count on Kanabo to purchase up to 1,000 kg per year of cannabis flowers, subject to regulatory approvals, for extraction of medical standard oils.
In order to “cement the relationship”, Kanabo has acquired an interest of over €874,500 ($1.1m) worth of shares in the Greek company, reflecting a desire of both parties “to see this investment as part of a broader potential relationship”.
“The Memorandum of Understanding 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,” said Avihu Tamir, CEO of Kanabo regarding the new partnership with the Greek firm.
Hellenic Dynamic’s lead product is THC dominant dried medical cannabis flowers as these products occupy over 85% of all current prescriptions in Europe’s largest medical cannabis market –Germany. In addition, a full extraction laboratory is planned to be operational in late 2022, with the plan to move into cannabis extracts when the market is deemed to be significant enough for the production and sales of both products.
It is worth noting that recently, the Greek Parliament approved a bill for the production of medicinal cannabis, which –according to the ruling party– will offer new options in the fields of agriculture and processing, thus benefiting the Greek economy through investments and the creation of new jobs.