Initial Commercial Scale Production

25 June 2021

Kanabo Group Plc

("Kanabo" or "the Company")

Initial Commercial Scale Production

Kanabo Group Plc (LSE:KNB), London-based medical cannabis R&D company, announces that the Company, in partnership with Pure Origin Group, has completed its first EU-GMP production line. This production marks the end of the Company's pilot sales and preludes a full product launch within Kanabo's primary markets, with the company embarking on the second phase of its sales plan to increase revenue from the sale of CBD products.

As previously announced on 20 May 2021, Pure Origin created a dedicated production line for Kanabo's CBD Wellness formulas using Kanabo's equipment, production protocols and IP. The company was chosen specifically for its Good Manufacturing Practices (GMPs) to regulate production, verification and validation, ensuring that Kanabo's finished products are effective and safe for market distribution.

Kanabo CEO, Avihu Tamir, said:

"In one month we have succeeded in a joint effort with the Pure Origin team to establish a EU-GMP production line for Kanabo's medical grade Hemp CBD line. This production is a key achievement that will bring a new quality of medical CBD vape products that were not previously available on to the UK market."

Pure Origin Joint Managing Director, Tony Rolfe, added:

"We are delighted to partner with Kanabo in the run up to full production and product launch of their EU-GMP manufactured CBD formulas."

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

Kanabo Group Plc

Tel: +(972)52-3173-633

[email protected]

Meirav Horn

Peterhouse Capital Limited (Financial Adviser)

Tel: +44 (0)20 7469 0930

Eran Zucker / Guy Miller / Allie Feuerlein

Peterhouse Capital Limited (Corporate Broker)

Lucy Williams / Charles Goodfellow

ABOUT KANABO

Kanabo aims to be an industry leader in product development and commercialisation of both cannabis-derived products for medical patients and THC-free products for CBD consumers. The company develops high-quality medical cannabis extract formulas, medical device vaporisers, and other innovative delivery methods. Validation activities are conducted at Kanabo's research lab at the Weizmann Science Park in Israel. With a primary focus on the German and UK Markets, Kanabo has already begun penetrating the European Market, and is positioned to scale up to meet growing market demand and projected sales. Currently, Kanabo is selling its line of CBD formulas for inhalation in the UK and Germany and has agreements with top distributors in the pharmaceutical and OTC sectors already in place.

ABOUT PURE ORIGIN

Pure Origin Group has been providing Pharma EU GMP contract manufacturing solutions at a facility in Wales for over 20 years (under different trading names). The company has amassed an extensive range of experience working with global brands in the pharmaceutical, cosmetic, food and nicotine industries across several product categories. The company's outstanding GMP disciplines and processes enable the ability to offer Customers all aspects of CBD manufacturing, from the processing and manufacturing of CBD extracts, to the ongoing development of new products (oils/tinctures, e-liquids, vaping pod systems, topicals / cosmetics, balms, soft gel capsules etc.), all underpinned by unrivalled product stewardship and testing.