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.
Medical cannabis R&D firm Kanabo Group (LON: KNB) said on Tuesday that Materia's subsidiary, Materia Malta Operating, has received a licence to produce cannabis for medicinal and research purposes from the Malta Medicines Authority.
In July this year, Kanabo announced a non-binding term sheet with Materia to acquire its European businesses, including Materia Malta.
Kanabo's share price jumped to a high of 19.4p on the news, up over 7% from Monday's 2% rise and close at 18p.
The receipt of the licence is the final requirement for Materia Malta to begin commercial production and export of medical cannabis for commercial purposes. Materia Malta is already EU GMP certified, and has an annual capacity of 6,000kg, representing a potential sale value of approximately €36M.
Materia Malta is now in the process of importing its first batch of raw material for commercial production. Kanabo said Materia Malta will begin fulfilling its supply commitments across Europe imminently, starting with the initial target markets of Germany, Malta and the UK. The first product is already registered on the narcotics licence of Materia Deutschland GmbH ahead of its import into Germany.
“Materia's progress is remarkable. Subject to completion of the merger, the facility in Malta will enable Kanabo's enlarged group to broaden its distribution across Europe and solidify our plan for a complete supply and distribution line,” said Kanabo CEO Avihu Tamir.
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