Sam is a professional trader and the lead stock market news writer at AskTraders. After starting his career in the forex market, Sam now focuses on gold and stocks with a preference for fundamental and macroeconomic analysis.
Shares of medical cannabis R&D company Kanabo Group (LON: KNB) are rallying on Thursday following its announcement that it has signed a partnership agreement with MedoCann Pharma or the development of new products with exclusive distribution rights into the German and UK medical cannabis markets.
Medocann is an established producer of medical-grade cannabis products with an indoor hydroponic facility.
The partnership will see the companies focus on the co-development of new and novel strains from flowers and extracts made for specific medical indications using a combination of Kanabo's preclinical data on the impact of cannabis on varying illnesses and Medocann's genetics bank, breeding and strain development expertise.
The new strains and extracts will be used to launch new co-developed medical cannabis products.
Kanabo stated that the agreement includes the exclusive rights to distribute the developed products into both the UK and German medical cannabis markets.
The price at which the products will be sold is estimated at EUR 9 per gram.
Avihu Tamir, CEO of Kanabo, added: “Medocann's hydroponic, precisely-grown cannabis is considered the best in Israel and is the only one cultivated without the use of Pesticides. Kanabo aims to bring these unique strains to patients in the UK and German markets through the Materia Malta production facility.”
Kanabo's shares jumped over 8% to 16.9p following the news. However, some of the initial momentum has since faded, and it is now trading at 16.4p, up 5.55%. Towards the end of September, Kanabo shares gained on the launch of its CBD line in the UK.
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