Half-year Report

RNS Number : 8673P

Kanabo Group PLC

22 October 2021

 

Kanabo Group PLC

Half Yearly Report (Unaudited)

For the Period Ended 30 June 2021

Kanabo Group plc ("Kanabo" or the "Company") announces today its Interim results for the period ended 30 June 2021.

Period Highlights

· The company completed the Reverse Take-Over of Kanabo Research Ltd on 16 February 2021 and raised 6.0 million gross through a placing and subscription. For additional information regarding the Reverse Take-Over transaction refer to note 7.

· On 24 May 2021, the company raised an additional £1.0 million and used £750,000 of the funds to make a Pre-IPO acquisition investment in Hellenic Dynamics S.A.

· A further £374,000 was raised during the period from the exercise of warrants.

· The Company's cash balance at the end of the period was £5.9 million.

Post-Period Highlights

· In July 2021, Kanabo signed a non-binding term sheet with Materia, to acquire Materia's European businesses. The proposed acquisition is to be fully satisfied through the issue of Kanabo shares.

· The first shipment of medical cannabis cartridges for distribution through LYPHE Group clinics and dispensaries was delivered.

Kanabo Group Plc
Meirav Horn	Via Vox Markets
Peterhouse Capital Ltd
Eran Zucker / Guy Miller (Financial Adviser)	Tel: [phone]
Lucy Williams / Charles Goodfellow (Corporate Broker)	Tel: [phone]
Vox Markets (Investor Relations)
Kat Perez	[e-mail]

About Kanabo Group Plc

Kanabo Group Plc is an R&D company currently selling a range of THC-Free Retail CBD Products in the Primary Markets and is in the process of developing further Medical Cannabis Products. The company's core strategy is to increase revenues from the sale of its Retail CBD Products in the wellness sector and to grow the Kanabo brand through its marketing initiatives. Learn more here; https://www.voxmarkets.co.uk/listings/LON/KNB/

Chairman's Review

This has been an exciting half year for Kanabo. Our reverse takeover of Kanabo Research Limited was successfully completed on 16 February 2021 and the Company raised gross proceeds of £6M. Additionally, on 24 May 2021 the company raised £1M to fund a Pre-IPO acquisition investment in Hellenic Dynamics S.A.

The Board remains committed to executing our strategy of leading the global evolution of the cannabis industry by building an integrated platform that will generate value from new product development through to production and distribution.  Thanks to the steadfast commitment and dedication of our people, we are making significant progress in the execution of this strategy. 

We have also strengthened our board with the appointment of Dr Daniel Poulter MP as a Non-Executive Director.  Daniel's knowledge and insight into, both, UK health service provision, and cannabis regulation has been (and will continue to be) invaluable to the Board.

The Company's pre-revenue status is reflected in the operating loss of £1.2m for the six-month period under review as it continued to lay the foundations for a successful full year and beyond. The total loss for this period was £2.4m, largely due to the one-off costs associated with the reverse acquisition.

Our balance sheet is strong and the Company finished the period with cash reserves of £5.9m as of 30 June 2021.

Strategy Summary

Leading the global evolution of the medical cannabis industry by building an integrated platform that will generate value from product development through to production and distribution.
PRODUCT DEVELOPMENT	Kanabo's research centre in Israel is a fully licensed lab for the development of medical devices and medical cannabis formulations. The Company focuses on the development of new innovative delivery methods and cannabis formulations for specific indications.
PRODUCTION	Kanabo will continue to build relationships with production partners to ensure the supply of our products to the Company's key markets. Kanabo provides its production partners with the necessary know-how, IP and production protocol in addition to the production equipment. Integral to this is the retention of full control over all aspects of product quality via 3rd party testing of raw materials and end products.
SUPPLY CHAIN & DISTRIBUTION	The Company continues to develop its strategic relationships with cultivators of high quality which provide sustainable and consistent raw materials. This will ensure the Company is able to secure the supplies needed, without becoming a cultivator.  Kanabo will establish multiple channels in its primary markets both in the wellness and the medical markets. The Company believes that having significant control over the 'last-mile' is key for brand building and sustainable growth.

Highlights

PRODUCT DEVELOPMENT	On 22 September 2021 the company launched a new wellness product line in the UK's CBD market. The product was developed in Kanabo's research centre and is patent pending. Kanabo's unique IP is based on a formulation that can improve sleep quality, promote calmness, and may ease discomfort. In addition, the Company developed and launched the first medical cannabis vape formula in the UK, that will initially target pain management. It is based on a formula developed and tested in Israel.  Our Partnership Agreement with Jupiter Research to license Jupiter's technology for the VapePod device has also moved forward even though physical audits for medical device certifications during the COVID-19 pandemic have been severely limited. Progress has been made having completed the first successful audit; the producer obtained the ISO 13485:2016 certification of its Quality Management System for medical devices, a crucial step in meeting the requirements. The company is expected to have the second audit stage commence in the near future.
PRODUCTION	PharmaCann On 9 March 2021, the Company signed a Joint Venture with PharmaCann Polska. PharmaCann, based in Warsaw, is a part of the PHCANN International Group and has a fully licensed medical cannabis compound in Skopje, North Macedonia. The compound comprises both an indoor cultivation facility and an EU-GMP standard extraction facility for the production of products based on cannabinoids. The Joint Venture establishes Kanabo's first medical cannabis production line in the EU with initial production capacity of up to 36,000 cartridges per month, and the ability to further increase production when necessary.  Pure Origin On 20 May 2021, the Company signed a supply agreement with Pure Origin Ltd and its affiliates to manufacture, package and deliver the Kanabo wellness product line from their EU GMP licensed facility in Wales. Under the agreement, Pure Origin will establish a dedicated production line with an initial capacity of 44,000 units a month and the ability to further increase production when necessary. The PharmaCann and Pure Origin relationships add significant production capacity to the CBD wellness business while retaining full control over product quality and distribution of Kanabo's tamper proof cartridges.
SUPPLY CHAIN & DISTRIBUTION	Hellenic On May 24, 2021, the Company completed a strategic investment in Hellenic Dynamics S.A ("Hellenic"). Hellenic is a medical cannabis cultivator with a substantial facility in Northern Greece.  This investment (£750,000) is a precursor to, subject to regulatory approvals, a preferred supply agreement for up to 1,000kg per year of EU GMP certificated cannabis flowers with pre-defined THC or CBD contents.  Medocan On October 7,2021, the Company concluded a strategic development agreement with Medocann Pharma Ltd..  Under this agreement the parties will combine Kanabo's preclinical data on the effect of cannabis on different illnesses with Medocann's genetics bank, breeding and strain development expertise. Medocann is an established producer of medical-grade cannabis products with an indoor hydroponic facility located in central Israel and a library of proprietary cannabis genetics all grown in a fully controlled environment, without the use of pesticides or insecticides. Medocann has an IMC GAP license for commercial propagation and commercial cultivation and is currently selling their premium products in Israel. Astral Health On 23 February 2021, Kanabo signed its first UK medicinal cannabis distribution agreement. Astral Health Limited (part of LYPHE Group) will distribute Kanabo's VapePod medicinal cannabis formula under the brand NOIDECS.

Looking ahead

On 26 July 2021, Kanabo announced the proposed acquisition of Materia to be satisfied wholly through the issue of Kanabo shares. This will be a transformational acquisition for Kanabo, bringing senior level management expertise in the cannabis agri-chem industry and an EU GMP licensed production facility in Malta from which the Company intends to supply its key markets including Germany and the UK.

The facility in Malta has the ability to process around 6,000kg of cannabis flowers from dozens of cultivators which, at capacity and based on current market rates, could deliver revenues of around £30M per annum.

The growing relationship between Kanabo and Materia has already borne fruit with the launch of Kanabo's products on one of the leading online marketplaces for CBD, HandpickedcCBD.com, which is wholly owned by Materia.

Whilst the nature and structure of this acquisition makes it particularly complex, I am pleased to report that good progress is being made.

In addition to the acquisition of Materia, the Company is also pursuing other opportunities with the potential to add supply and production capacity or to expand Kanabo's routes to markets.

Thank you for your support of our company.  I look forward to updating you again in the near future. 

Non-Executive Chairman

David Tsur

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The Directors confirm that these condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting' as adopted by the United Kingdom and that the interim management report includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8, namely:

  an indication of important events that have occurred during the first six months and their impact on the condensed set of financial statements, and a description of the principal risks and uncertainties for the remaining six months of the financial year; and

• material related-party transactions in the first six months and any material changes in the related-party transactions described in the last annual report.

STATEMENTS OF FINANCIAL POSITION

				June 30				December 31
				2021		2020		2020
				Unaudited  Audited
		Note		£ '000
ASSETS
NON-CURRENT ASSETS:
Property, plant and equipment				34		17		13
Long term deposits				13		16		14
Investment		8		750		-		-
						-
				797		33		27
CURRENT ASSETS:
Cash and cash equivalents				5,945		429		380
Short-term deposit				7		5		5
Trade receivables				4		3		-
Other accounts receivable				85		19		33
Inventories				59		40		27
				6,100		496		445
				6,897		529		472

The accompanying notes are an integral part of the interim consolidated financial statements.

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

						June 30,						December 31,
						2021			2020			2020
							Unaudited						Audited
			Note			£ '000
LIABILITIES AND EQUITY
NON-CURRENT LIABILITIES:
Severance pay, net						-			3			-
						-			3			-
CURRENT LIABILITIES:
Trade payables						33			5			20
Employee and related payables						95			42			34
Accrued expenses and other accounts payables			9			120			6			33
Loan						-			313			424
						248			366			511
						248			369			511
EQUITY (DEFICIT) ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY:
Share capital			11			9,213			-			-
Share premium						14,189			2,05 9			2,098
Reserve from share-based payment transactions						267			807			805
Reverse acquisition reserve			7			(12,468)			-			-
Foreign Currency reserve						30			82			75
Retained earnings (accumulated deficit)						(4,582)			(2,788)			(3,017)
Total equity (deficit)						6,649			160			(39)
						6,897			529			472

- represent amount less than one GBP

The accompanying notes are an integral part of the interim consolidated financial statements.

20 October, 2021
Date of approval of the				David Tzur
financial statements				Chairman of the board

 

 

STATEMENTS OF PROFIT OR LOSS

				For the 6 months ended					For the year ended December 31,
				Unaudited					Audited
				2021		2020				2020
		Note		£ '000
Revenue				15		14				60
Cost of Sales				(19)		6				26
Gross (loss)/profit				(4)		8				34
Research expenses				116		75				149
Selling and marketing expenses				187		75				59
General and administrative expenses				888		200				389
				1,191		350				597
Operating loss				(1,195)		(342)				(563)
Other expense		7		1,172		-				-
Finance expenses net.				10		2				28
Loss before Tax				(2,377)		(344)				(591)
Income tax				-		-				-
Loss for the period from continuing operations				(2,377)		(344)				(591)
Other comprehensive income
Foreign exchange translation gains/ (loss)				45		(147)				11

Total items that may be reclassified to profit or loss				45		(147)		11
Total comprehensive income for the period				(2,332)		(491)		(580)
Earnings per share from continuing operation- pence				(1)		(159)		(274)

The accompanying notes are an integral part of the interim consolidated financial statements

STATEMENTS OF CHANGES IN EQUITY

		Share capital				Share premium		Reserve from share-based payment transactions		Retained earnings (accumulated deficit)		Reverse acquisition reserve		Foreign exchange reserve		Total equity
				£ '000
Balance as of January 1, 2021		-				2,098		805		(3,017)		-		75		(39)
Net income (loss)		-				-		-		(2,377)		-		-		(2,377)
Other comprehensive income														(45)		(45)
Exercise of options		-				-		(812)		812		-		-		-
Transfer to reverse acquisition reserve		-				(2,098)		-		-		2,098		-		-
Recognition of plc equity at acquisition date		735				592		-				434				1,761
Issue of shares for acquisition of subsidiary		5,769				9,231		-		-		(15,000)				-
Issue of shares		2,600				4,774		-		-		-		-		7,374
Exercise of warrants		94				314		-		-		-		-		408
Issue of shares in settlement of fees		15				25		-		-		-		-		40
Cost of share issue		-				(747)		-		-		-		-		(747)
Issue of warrants		-				-		114		-		-		-		114
Cost of share-based payment		-				-		160		-		-				160
Balance as of June 30, 2021		9,213				14,189		267		(4,582)		(12,468)		30		6,649

The accompanying notes are an integral part of the interim consolidated financial statements.

STATEMENTS OF CHANGES IN EQUITY

		Share Capital		Share premium		Reserve from share-based payment transactions		Retained earnings (accumulated deficit)		Foreign exchange reserve		Total Equity
Balance as of January 1, 2020		-		1,831		800		(2,506)		65		190
Net income (loss)		-						(344)				(344)
Exercise of options		-		-		(62)		62				-
Exercise of warrant		-		228								228
Cost of share-based payment						69						69
Other comprehensive loss										17		17
Balance as of June 30, 2020		-		2,05 9		807		(2,788))		82		160

		Share Capital		Share premium		Reserve from share-based payment transactions		Retained earnings (accumulated deficit)		Foreign exchange reserve		Total Equity
Balance as of January 1, 2020		-		1,831		800		(2,506)		65		190
Net income (loss)		-		-		-		(591)		-		(591)
Exercise of options		-		-		(80)		80		-		(*
Exercise of warrant		-		267				-		-		267
Cost of share-based payment						85						85
Other comprehensive loss										10		10
Balance as of December 31, 2020		-		2,098		805		(3,017)		75		(39)

The accompanying notes are an integral part of the interim consolidated financial statements.

STATEMENTS OF CASH FLOWS

		For the six months ended June 30,				For the year ended December 31,
		2021		2020		2020
		£ '000
Cash flows from operating activities:
Net loss		(2,377)		(344)		(591)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Adjustments to the profit or loss items:
Depreciation and amortization		1		3		5
Finance expense (income), net		11		7		18
Professional fees redeemed by shares		40
Cost of share-based payment		160		68		85
Reverse acquisition share-based payment expense		1,172		-		-
Loss from sale of property, plant and equipment		-		-		1
		1,384		78		109
Changes in asset and liability items:
Increase in trade receivable and other accounts receivable		(50)		(5)		(16)
(Increase)/Decrease in inventories		(32)		(2)		9
(Decrease)/Increase in trade payable and other accounts payable		48		(55)		(17)
Increase /(decrease) in employee and related payables		62		(21)		(28)
		28		(83)		(52)
Net cash used in operating activities		(965)		(349)		(534)
Cash flows from investing activities:
Purchase of property, plant and equipment		(24)		-		-
Investment in Available for sale		(750)		-		-
Cash acquired on acquisition		358		-		-
Investment in short term deposits		(2)		(5)		(5)
Investment in long term deposits		-		(2)
Net cash used in investing activities		(418)		(7)		(5)
Cash flows from financing activities:
Receipts on short term loan		-		191		300
Share Issue net of issuing cost		6,480		-		-
Issue of warrants		374		268		268
Issue of options		98		-		(*
Net cash generated from financing activities		6,952		459		568
Net increase in cash and cash equivalents		5,569		103		29
Cash and cash equivalents at beginning of the period		380		334		333
Effect of exchange rates on cash		(4)		(8)		18
Cash and cash equivalents at end of the period		5,945		429		380

The accompanying notes are an integral part of the interim consolidated financial statements.

NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENT

1.  Information on the Company  

 Kanabo Group plc's (the "Company") and its subsidiaries (together, "the Group") principal activities are the distribution and developing of medical cannabis products.

The Group has its research center in Israel.

The Company is incorporated and domiciled in England and Wales as a public limited company and listed on the London Stock Exchange (standard segment)

2.  Basis of preparation and principal accounting policies

These condensed consolidated interim financial statements do not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2020 were approved by the Board of Directors on 1 June 2021 and delivered to the Registrar of Companies. The report of the auditors on those accounts was unqualified, did not contain an emphasis of matter paragraph and did not contain any statement under section 498 of the Companies Act 2006.

These condensed consolidated interim financial statements have been reviewed, not audited.

These condensed consolidated interim financial statements for the six months ended 30 June 2021 have been prepared in accordance with the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority and with IAS 34, 'Interim financial reporting' as adopted by the United Kingdom. The condensed consolidated interim financial statements should be read in conjunction with the annual financial statements for the year ended 31 December 2020, which have been prepared in accordance with IFRSs as adopted by the European Union.

Segment reporting

The company considers it has one operating segment and therefore the results are as presented in the primary statements.

Forward-looking statements

Certain statements in this condensed set of consolidated interim financial statements are forward looking. Although the Group believes that the expectations reflected in these forward-looking statements are reasonable, we can give no assurance that these expectations will prove to be correct. As these statements involve risks and uncertainties, actual results may differ materially from those expressed or implied by these forward-looking statements. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

3.  Going concern  

The Directors have assessed the current financial position of the Company, along with future cash flow requirements, to determine if the Company has the financial resources to continue as a going concern for the foreseeable future.

The conclusion of this assessment is that it is appropriate that the Company be considered a going concern. For this reason, the Directors continue to adopt the going concern basis in preparing the unaudited interim financial statements

4.  Seasonality

The Group is not subject to seasonal variations in trading.  

5.  Estimates and Judgements

The preparation of interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income, and expense.

Actual results may differ from these estimates. In preparing these condensed consolidated interim financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the financial statements for the year ended 31 December 2020   and, in the prospectus, issued in February 2021.

6.  Financial risk management  

The Group's activities expose it to a variety of financial risks, including - market risk (including currency risk and interest rate risk), credit risk and liquidity risk. The condensed consolidated interim financial statements do not include all financial risk management information and disclosures required in the annual financial statements; they should be read in conjunction with the Group's annual financial statements as at 31 December 2020. There have been no changes in any risk management policies since the year end or as disclosed in the prospectus.

7.  Reverse Acquisition

On 16 February 2021, Kanabo Group PLC ("Company") formerly known as Spinaker Opportunities PLC, acquired through a share for share exchange the entire share capital of Kanabo Research ltd., whose principal activity is the provision of THC-Free retail CBD products and Vaporization devices.

Although the transaction resulted in Kanabo Research Ltd becoming a wholly owned subsidiary of the Company, the transaction constituted a reverse acquisition, as the previous shareholders of Kanabo Research Ltd own a substantial majority of the Ordinary Shares of the Company and the executive management of Kanabo Research Ltd became the executive management of Kanabo Group plc.

In substance, the shareholders of Kanabo Research Ltd acquired a controlling interest in the Company and the transaction has therefore been accounted for as a reverse acquisition. As the Company's activities prior to the acquisition were purely the maintenance of the LSE Listing, acquiring Kanabo Research Ltd and raising equity finance to provide the required funding for the operation of the acquisition, it did not meet the definition of a business in accordance with IFRS 3.

Accordingly, this reverse acquisition does not constitute a business combination and was accounted for in accordance with IFRS 2 "Share-based Payments" and associated IFRIC guidance. Although, the reverse acquisition is not a business combination, the Company has become a legal parent and is required to apply IFRS 10 and prepare consolidated financial statements. The Directors have prepared these financial statements using the reverse acquisition methodology, but rather than recognising goodwill, the difference between the equity value given up by Kanabo Research Ltd's shareholders and the share of the fair value of net assets gained by these shareholders, is charged to the statement of comprehensive income as a share-based payment on reverse acquisition, and represents in substance the cost of acquiring an LSE listing.

On 16 February 2021, the Company issued 230,769,231 ordinary shares to acquire the 237,261 ordinary shares of Kanabo Research Ltd. Based on a share price of £0.065 (which was used for the fund-raising on the same date), the Company's investment in Kanabo Research Ltd is valued at £15,000,000.

Because the legal subsidiary, Kanabo Research Ltd, was treated on consolidation as the accounting acquirer and the legal Parent Company, Kanabo Group plc, was treated as the accounting subsidiary, the fair value of the shares deemed to have been issued by Kanabo Research Ltd was calculated at £1,911,000 based on an assessment of the purchase consideration for a 100% holding of Kanabo Group plc.

According to the IFRS 2 the value of the share-based payment is calculated as the difference between the deemed cost and the fair value of the net assets as at the acquisition day. During the period between 1 January 2021 to 16 February several shareholders exercised their warrants. The exercised warrants indicated that in the event the RTO acquisition would not be completed the funds would be returned to the shareholders. For that reason, we decided that it would be more appropriate to use the value of the net assets as of 1 January 2021.

Deemed cost	1,911,007
Trade and other receivables	433,781
Cash and cash equivalents	358,726
Trade and other payables	(53,631)
RTO expenses	1,172,131

The difference between the deemed cost (£1,911,000) and the fair value of the net assets assumed per above of £739,396 resulted in £11,172,131 being expensed within "reverse acquisition expenses" in accordance with IFRS 2, Share Based Payments, reflecting the economic cost to Kanabo Research Ltd's shareholders of acquiring a quoted entity.

       The reverse acquisition reserve which arose from the reverse takeover is made up as follows:

		£'000
Pre-acquisition equity1		(738,876)
Kanabo research ltd share capital at acquisition 2		2,098,889
Investment in Kanabo research ltd 3		(15,000,000)
Reverse acquisition expense 4		1,172,131
		(12,467,855)

1.  Recognition of pre-acquisition equity of Kanabo Group plc as at 1 January 2021.

2.  Kanabo Research Ltd had issued share capital of 2,098,889. As these financial statements present the capital structure of the legal parent entity, the equity of Kanabo Research Ltd is eliminated.

3.  The value of the shares issued by the Company in exchange for the entire share capital of Kanabo Research Ltd. The above entry is required to eliminate the balance sheet impact of this transaction.

4.  The reverse acquisition expense represents the difference between the value of the equity issued by the Company, and the deemed consideration given by Kanabo research ltd to acquire the Company.

8.  Investments

On 24 May 2021 the Company invested £750,000 into Hellenic Dynamics ("HD") and the company will receive equity as part of the proposed listing of Hellenic Dynamics.  HD is in the process of securing admission to the London Stock Exchange through a Reverse Take Over (" RTO").  The number of HD shares that will be issued to the Company shall be calculated based upon a discount of 30% to the RTO Valuation.

9.  Accrued expenses and other accounts payables

		June 30,				December 31,
		2021		2020		2020
		£ '000
Accrued expenses		114		3		33
Deferred Revenues		6		3		-
		120		6		33

10.  Earnings per share

The basic earnings per share is calculated by dividing the (loss)/profit attributable to the ordinary shareholders of the Company by the weighted average number of Ordinary shares in issue during the period, excluding Ordinary shares purchased by the Company and held as treasury shares.

	Half year ended	Half year ended	Year   ended
	30.06.21	30.06.20	31.12.20
Loss attributable to equity holders of the Company (£'000)	( 2,377 )	(342)	(591)
Weighted average number of shares in issue	278,192,783	216,077	215,733
Earnings per share pence	(1)	(159)	(274)

Due to the loss incurred in the period under review, the dilutive securities have no effect at 30 June 2021.

11.  Share Capital

Opening number of shares of the parent company			29,400,120
Shares issued in the year for RTO1			230,769,210
Shares issued in placing and subscriptions 16 February 20212			92,307,693
Shares issued on account of fees			615,384
Share issued in placing and subscriptions 24 May 20213			4,545,454
Shares issued during the period due to option and warrant exercises			10,878,429
Total number of shares at 30 June 2021			368,516,290

1.  On February 16, 2021, the company completed its reverse takeover (" RTO") process with Spinnaker Opportunities Plc ("SOP"). The RTO was done in the form of a share for shares exchange and the ratio was approximately 1:972.64.

2.  On February 16, 2021 the company issued 92,307,693 shares raising £ 6,000,000 before costs

3.  On 24 May the company issued 4,545,454 shares raising £ 1,000,000 before costs

12.  Share based payment

a.  Warrants

	Number of awards		Weighted average exercise price
At 31 December 2020	-		-
Granted	19,051,774		0.09
Exercised	4,241,508		0.09
At 30 June 2021	14,810,266		0.09

b.  Stock Option

a.  On February, 2018 Kanabo Research Limited approved an employee share option plan ("The Original Plan"). The vesting period attaching to grants made under this plan ranged from immediately to after four years. All grants were approved by the Board of Directors. On February 16, 2021 and following the transaction, this plan was cancelled and superseded by the Replacement Plan (see below).

b.  On March 28, 2021, the Group approved a share-based payment plan for its Israeli employees ("The Replacement Plan"). Options will be granted under the Replacement Plan to replace cancelled options granted under the Original Plan. The recipients of replacement options will include employees and directors.

c.  No changes were made in Kanabo Group Plc. option scheme.

Further details regarding the Company's share option plans

		For the six months ended June 2021
		Number of options		Weighted average of the exercise price in GBP
Are in circulation at the beginning of the year		20,612		0.62
Granted during the year		-
Forfeited during the year		-
Realized during the year		18,407		-
Expired during the year		2,205		-
Are in circulation at the end of the period		-

 Further details regarding the Group's share option plans

		For the six months ended June 2021
		Number of options		Weighted average of the exercise price in GBP
Are in circulation at the beginning of the year		1,960,000
Granted during the year		11,458,102
Forfeited during the year
Realized during the year		1,960,000
Expired during the year		-
Are in circulation at the end of the period		11,458,102		0.14

13.  Events after the reporting period

The company doesn't have any post reporting period events to report.

 

END

 

 

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