The share price of Kanabo Group (LON: KNB) is one of the biggest movers in London on Tuesday after the company said Materia's subsidiary, Materia Deutschland GmbH, has entered into an agreement with German medical cannabis manufacturer Eurox Pharma GmbH to distribute German-produced medical cannabis extracts.
In July, Kanabo announced the signing of a non-binding term sheet with Materia to acquire Materia's European businesses.
Kanabo said extracts are the “fastest growing format in Germany's medical cannabis market, exhibiting approximately +62% sequential quarterly growth at the beginning of this year.”
The agreement will add a new line of cannabis extracts products for Materia Deutschland's portfolio and help expand its distribution network across Germany, including new pharmacies that dispense extracts.
“This is a strategic step forward in our preparation for the market's increasing adoption of medical cannabis in the form of extracts. Our sales team is already trained and equipped to win new pharmacy customers with the addition of this new format,” said Nick Pateras, Managing Director, Europe at Materia.
Kanabo's shares have erased Monday's 2% decline and more, now up 10% so far during Tuesday's session, priced at 19.8p.
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