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Kanabo Group Share Price Reacts to H1 Loss

Sam Boughedda trader
Updated 22 Oct 2021

Kanabo Group's (LON: KNB) share price has reacted Friday to its H1 report that saw the company record a loss during the period ended June 30 2021.

Kanabo reported a pretax loss of £2.4 million compared to a loss of £344,000 during H! 2020. However, the widened loss was put down to one-off costs associated with the reverse acquisition of Kanabo Research Ltd. A one-off £1.2 million expense linked to the reverse acquisition was reported.

Revenue for the period came in at £15,000 from £14,000 the previous year, while general and administrative expenses came in slightly higher. 

“The company's pre-revenue status is reflected in the operating loss of £1.2m for the six-month period under review as it continued to lay the foundations for a successful full year and beyond. The total loss for this period was £2.4m, largely due to the one-off costs associated with the reverse acquisition,” stated Kanabo.

“Our balance sheet is strong and the Company finished the period with cash reserves of £5.9m as of 30 June 2021,” they added.

Kanabo pointed to several highlights during the period, including its agreement with Medocann Pharma, which resulted in a rally for its stpock price earlier this month.

Kanabo shares are currently up 0.31% at 16.3p after initially dropping to a low of 15.1p following the news.

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Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.Â