Kanabo Group's share price was the biggest mover in London on Tuesday following its announcement that it has signed a production and supply agreement with PharmaCann Polska.
PharmaCann is based in Warsaw, Poland and is part of the PHCANN International Group.
The agreement will see PharmaCann supply cartridges containing Kanabo's proprietary medicinal cannabis formulations for its VapePod inhalation device. The cartridges will be filled and prepared at PharmaCann's wholly-owned facility in North Macedonia.
Kanabo said, “this is a second key agreement directed towards establishing a European medicinal cannabis supply chain and builds on the previous announcement of a UK distribution agreement. Kanabo's CBD Wellness products are already being produced and distributed in the primary markets of UK and Germany.”
PharmaCann and Kanabo will establish a dedicated production line for medicinal formulas that will use filling equipment procured and supplied by Kanabo. Under the agreement, PharmaCann will provide an initial production capacity of up to 36,000 cartridges per month to further increase production when necessary.
“Following the increased fund-raise achieved at the IPO, we are able to accelerate preparations for supply of medicinal cannabis products in addition to building our CBD Wellness business,” said Avihu Tamir, Kanabo's CEO.
“I am delighted to work with PharmaCann which will enable us to provide medical cannabis vape products to thousands of patients safely and effectively using our medical grade VapePod device,” added Tamir.
Kanabo's shares closed the day 24.3% higher at 23p per share.