The Greek cannabis cultivation company Hellenic Dynamics has partnered with Israeli company Kanabo Research Limited, it was announced on May 24, in a venture meant to provide CBD products to the world.
The two companies will cooperate to provide consumers with more options for CBD and THC infused products. Kanabo is a research and development company in the cannabis industry and Hellenic Dynamics concerns itself with growing and cultivating raw materials, making this a mutually beneficial partnership.
Greek cannabis cultivation firm
The terms of the Memorandum of Understanding between the companies stipulate both the amount and quality of the cannabis flowers that Kanabo will purchase from Hellenic Dynamics.
The Greek cannabis growing company will be able to count on Kanabo to purchase up to 1000 kilograms (2,204 pounds) per year of European Union good manufacturing practice (GMP)-certified cannabis flowers. These will have pre-defined THC or CBD contents, subject to certain regulatory approvals, for subsequent extraction by Kanabo of medical-standard oils.
Kanabo is listed on the London Stock Exchange as a medical cannabis company, and with the announcement of the partnership it was divulged that the firm acquired an interest amounting to over £750,000 ($1,062,495) worth of shares in Hellenic Dynamics.
“The Memorandum of Understanding with Hellenic and the subsequent investment is part of Kanabo’s strategy to quickly grow its core business whilst pursuing complementary, synergistic, acquisitions and investments in the medical cannabis space, leveraging our position as a quoted company,” said the CEO of Kanabo Avihu Tamir, about his new partnership with the Greek cannabis cultivation firm.
“We welcome the enthusiastic support of investors for our approach.”
A similarly optimistic stance was taken by the CEO of Hellenic Dynamics, Davinder Rai.
“This agreement and investment in the business underscores the quality and scale of our specialist cultivation ambitions. We look forward to working closely with Kanabo and this deal highlights the demand and growth opportunity for Hellenic in the European medical cannabis market,” said Rai.
The main function of Hellenic Dynamics as a company is to cultivate, produce, and extract THC-dominant strains of medical cannabis flowers. The company plans to do so in a giant 200,000 square meter (2,152,782 square foot) facility near Thessaloniki, in the Greek region of Macedonia.
Hellenic will begin cultivating medical cannabis later on this year and they are expected to begin selling it commercially during the fourth fiscal quarter (October, November, or December). Additionally, Hellenic plans to begin distributing into new and further European markets by early 2022.
Through Kanabo, the Greek cannabis cultivation firm will likely see its flowers sold in markets outside of Greece from the outset. Kanabo already focuses on the German and UK CBD markets, and will likely continue to permeate the wider European market over the next few years.