Kanabo Group Plc

("Kanabo" or the "Company")

Materia Announces Trading Update for 4Q22

First Production Sold Out Ahead of Forecasts

Kanabo Group Plc (LSE:KNB), the pan-European medical cannabis company focussing on developing and commercialising cannabis-derived products for medical patients and wellness CBD for consumers, notes Materia's positive trading update for Q4 2021, published on Materia's website.

As announced on 16 December 2021, Materia's wholly owned subsidiary Materia Malta Operating Ltd. ("Materia Malta") commenced sales of the first medical cannabis flower produced at its EU GMP certified manufacturing site in Europe.

According to the Q4 update provided by Materia, the entire first volume production run has been sold out within the first two weeks of sales commencing, with distribution partners returning to replenish inventory on multiple occasions.

This marks a successful quarter of performance for Materia, with Materia Deutschland GmbH continuing to expand its distribution network and achieving its strongest quarter of pharmacy sales for the year. At a group level, Materia's Q4 sales grew +48% over Q3 (Based on unaudited financial records for 2021), an acceleration of previous revenue growth.

Looking ahead, Materia anticipates the achievement of more operational milestones in 2022, including the first sale into Germany of medical cannabis manufactured by Materia Malta. Materia is also targeting other important European markets such as the United Kingdom, as well as broadening its portfolio to include new formats such as cannabis extracts. 

As per the announcement on 4 November 2021, and in-line with the Company's stated strategy to generate shareholder value through M&A, Kanabo Group Plc has finished the majority of its due diligence work as part of the proposed acquisition of the European businesses of 11157353 Canada Corp. (the "Proposed Transaction"), which trades under the name of Materia ("Materia"). The Proposed Transaction contemplates the full acquisition of Materia's European business, including its Maltese EU GMP certified facility, German medical cannabis wholesaler and UK CBD e-commerce platform.

The Proposed Transaction is still subject inter alia to the agreement of formal documentation and conditional on, among other things, the receipt of all necessary regulatory consents.

For further information, please visit http://www.kanabogroup.com/ or contact the following:

About Kanabo Group Plc

Kanabo Group Plc is creating a new standard in the medical cannabis industry to improve the well-being of millions of people around the world by providing a better alternative to the smoking of medicinal cannabis flowers. Kanabo, which was the first medicinal cannabis company to IPO on London Stock Exchange, has a focus on the distribution of cannabis-derived products for medical patients and non-THC products for CBD consumers. It has conducted extensive Research & Development to produce high-quality cannabis extract formulas, innovative medical-grade vaporizers, and various non-smoking consumption solutions. Kanabo sells a range of medical cannabis products and wellness CBD products in the Primary Markets, including its VapePod, which delivers a metered dose with every inhalation.

About Materia

Materia is a leading independent processor and distributor of medical cannabis and CBD wellness products. Materia has developed a robust EU-GMP manufacturing and distribution ecosystem to grow the legal cannabinoid market across Europe. With its research-driven team and regulatory expertise, Materia focuses on the high-margin downstream activities of processing, formulation and distribution into markets wherever there is a patient in need of cannabis medicine or CBD consumers seeking innovative new products.