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 firm Kanabo Group (LON: KNB) jumped at the open after announcing that it has raised £1 million via a share placing and has signed a Memorandum of Understanding with Hellenic Dynamics S.A.
The company raised funds through a placing of 4.5 million shares at 22p per share with new and existing investors.
The deal with Hellenic Dynamics, a medical cannabis cultivation company, has seen Kanabo purchase £750,000 worth of shares in the company, part of a broader strategic partnership.
Under the terms of the MoU, Kanabo will purchase up to 1000kg per year of EU GMP certified cannabis flowers with pre-defined THC or CBD contents to extract medical standard oils.
Kanabo will receive the shares in Hellenic as part of a proposed London listing through a reverse take-over of an AIM-listed cash shell.
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.”
Kanabo Group's share price jumped to 22.5p at the open. It is currently trading at 21.2p, up 5.75% from Friday's close.
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