I am pleased to update our shareholders on the significant progress we’ve recently made and hope you all enjoy our 1Q22 newsletter. I would also like to take this opportunity to thank all our employees and advisors for their dedication during this busy time. During the period, we completed the strategic acquisition of The GP Service, signed an MoU with Forbe to sell our CBD products in Israel and raised further funds to accelerate our stated strategy. Take a look…
Kanabo acquires The GP Service
In February 2022, we announced the acquisition of the telemedicine provider, The GP Service, for a total consideration of just under £14m.
Under the service’s new framework, patients can, for a set price of £39.99, get an appointment with a UK registered GP within half an hour and then get a prescription sent to one of 4,200 pharmacies within an hour for £7.49.
The service can electronically deliver prescriptions to this vast network which includes major high street chains as well as independent pharmacies. By improving current access, we hope to make a substantial contribution to improving the outcomes for thousands of patients in the UK and Europe.
As well as developing the existing telemedicine business, we intend to develop and leverage the digital technology, physician network and patient community of The GP Service for the sale of our own product and service offerings.
The acquisition of The GP Service is therefore considered a strategic fit for Kanabo Group, largely as the acquisition will establish a new and fully compliant channel to market for the Company’s products and services once UK Cannabis regulation permits. Read more on the acquisition here…
Avihu Tamir, founder and CEO of Kanabo, said: “[The] acquisition of the GP Service is part of our strategy to use M&A alongside organic growth to build a pan-European company, and to offer help to millions of consumers and medical patients for conditions including chronic pain, anxiety and central nervous system diseases.
VIDEO: CEO, Avihu Tamir discusses the acquisition with Director of The GP Service, Atul Devani
Kanabo is fully funded to execute its strategy
Last month, Kanabo also successfully completed a £2.25 million fundraising. We intend to use these funds to accelerate our stated growth strategy.
Kanabo’s Chief Executive Officer and Founder, Avihu Tamir, explains: “Kanabo has a well-developed plan to deploy the proceeds from the placing to proceed with complementary acquisitions to accelerate its stated strategy to become one of Europe’s leading ‘product to patient’ medical providers.”
MOU with Forbe Ltd to sell CBD products and services in Israel
On Wednesday, we signed a memorandum of understanding with Forbe Ltd, which counts amongst its customers the second largest pharmacy chain in Israel, for the sale of CBD products in Israel.
Beyond this agreement, we are aware of the increasingly positive state of the regulatory landscape for the sale of CBD in Israel. In fact, earlier this month, the Ministry of Health announced its plans to exclude substances or products containing the CBD component from the Dangerous Drugs Ordinance.
The Minister of Health stated that over the next two years, the ministry will aim to promote research and development activities, alongside the development of regulatory capacity, so that CBD products can be marketed in Israel.
Why is this important for us? Israel is therefore considered a significant addressable market for Kanabo’s collaboration with Forbe; in fact, this deregulated market is estimated to be worth up to US$475m in total by 2025.