Kanabo to buy European operations of Materia in cannabis deal

London-listed marijuana business Kanabo (KNB.L) has struck a deal that it says will make it Europe’s biggest publicly traded cannabis company.

Kanabo said on Monday it had agreed terms to buy the European operations of Canada’s Materia, a cannabis processor and supplier. Exact terms weren’t disclosed but Kanabo said the deal would be paid for through shares and subject to performance-related goals.

“The only part that we’re not involved in now in the supply chain is cultivation,” Kanabo’s chief executive Avihu Tamir told Yahoo Finance UK. “Our belief is that cultivation will be a commodity like other agricultural products. We believe the value is in the last mile.”

Tamir said the deal was “significant” in size but Materia would be a minority shareholder post close. He predicted the transaction would close “very, very quickly.” Kanabo and Materia already have commercial relationships and Tamir said the management teams knew each other well.

Read more: London-listed Kanabo signs Greek cannabis growing deal

Materia owns a cannabis processing plant in Malta and a wholesaling business in Germany, which is the largest market for legal marijuana in Europe. 

“It’s very unique because it allows you to make Malta the doorway to Germany and Europe in general,” Kanabo’s chief executive Avihu Tamir told Yahoo Finance UK.

Materia’s Malta…

London-listed marijuana business Kanabo (KNB.L) has struck a deal that it says will make it Europe’s biggest publicly traded cannabis company.

Kanabo said on Monday it had agreed terms to buy the European operations of Canada’s Materia, a cannabis processor and supplier. Exact terms weren’t disclosed but Kanabo said the deal would be paid for through shares and subject to performance-related goals.

“The only part that we’re not involved in now in the supply chain is cultivation,” Kanabo’s chief executive Avihu Tamir told Yahoo Finance UK. “Our belief is that cultivation will be a commodity like other agricultural products. We believe the value is in the last mile.”

Tamir said the deal was “significant” in size but Materia would be a minority shareholder post close. He predicted the transaction would close “very, very quickly.” Kanabo and Materia already have commercial relationships and Tamir said the management teams knew each other well.

Read more: London-listed Kanabo signs Greek cannabis growing deal

Materia owns a cannabis processing plant in Malta and a wholesaling business in Germany, which is the largest market for legal marijuana in Europe. 

“It’s very unique because it allows you to make Malta the doorway to Germany and Europe in general,” Kanabo’s chief executive Avihu Tamir told Yahoo Finance UK.

Materia’s Malta…