£150,000 investment in Kanabo Group plc

RNS Number : 7375N

Vela Technologies PLC

02 February 2021

 

2 February 2021

Vela Technologies plc

("Vela" or "the Company")

£150,000 investment in Kanabo Group plc

The Board of Vela (AIM: VELA) announces that it has agreed to invest £150,000 in Spinnaker Opportunities plc (to be re-named Kanabo Group plc) ("Spinnaker") as part of Spinnaker's placing and subscription to raise £6.0 million (before expenses) in conjunction with its reverse takeover acquisition of Kanabo Research Limited ("Kanabo").

Spinnaker, as enlarged by the fundraise and the acquisition, has published a prospectus in connection with this transaction and has convened a general meeting to approve the reverse takeover acquisition. Admission of the enlarged share capital of Spinnaker to trading on the main market of the London Stock Exchange is expected to take place on 16 February 2021, subject to shareholder approval at a general meeting of Spinnaker on 15 February 2021.

The funds raised pursuant to the placing and subscription, which was oversubscribed, will support Kanabo's operations and enable the company to capitalise on market growth, establish its brand and increase revenues.

Further details on Kanabo and the transaction with Spinnaker are contained in the prospectus which is available at: http://www.spinnakeropportunities.uk .

Further information on Kanabo

Subject to shareholder approval at its general meeting, Spinnaker will acquire Kanabo, an Israel based research and development company which currently sells a range of THC-free retail cannabidiol (CBD) products in its primary markets of the UK and Germany. Following completion of the acquisition, Kanabo's core strategy will be to increase revenues from the sale of Kanabo's existing retail CBD products (vaporisation devices) and to grow the Kanabo brand through marketing initiatives.

Kanabo is currently undertaking a pilot scheme to measure a number of key performance indicators in relation to the sale of its products, including consumer preferences, demand for products, effectiveness of the supply chain and compliance with quality controls. Following completion of this pilot, the enlarged group will implement the second phase of its strategy aimed at delivering growth in sales of its products, based upon the findings of the pilot. Kanabo Group plc's long-term strategy involves continued research and development, in order to establish a range of unlicensed medical cannabis oils, to be sold alongside its vaporisation device, the VapePod Medical.

Details of the subscription

Vela has entered into a conditional placing letter pursuant to which it has agreed to invest £150,000 in Kanabo Group plc, funded from the Company's existing cash resources. Vela has subscribed for 2,307,692 new ordinary shares at a price of 6.5 pence per ordinary share, valuing the enlarged Kanabo Group plc at £23.4 million on admission. Following admission to trading on the main market of the London Stock Exchange, Vela will hold approximately 0.6 per cent. of the issued share capital of Kanabo Group plc.

Vela's investment is conditional on admission of the enlarged share capital of Kanabo Group plc to trading on the main market of the London Stock Exchange.

For further information, please contact:

Vela Technologies plc Brent Fitzpatrick, Non-Executive Chairman James Normand, Executive Director	Tel: [phone]
Allenby Capital Limited (Nominated Adviser and Joint Broker)	Tel: [phone]
Nick Athanas/Asha Chotai
Peterhouse Capital Limited (Joint Broker) Lucy Williams / Duncan Vasey / Eran Zucker	Tel: [phone]

About Vela Technologies plc   

Vela Technologies plc (AIM: VELA) is an investing company focused on early stage and pre-IPO long term disruptive technology investments. Vela's investee companies have either developed ways of utilising technology or are developing technology with a view to disrupting the businesses or sector in which they operate. Vela Technologies will also invest in already-listed companies where valuations offer additional opportunities.

About Kanabo

Kanabo is creating a new standard in the medical cannabis industry to improve the well-being of millions around the world. It will focus on the distribution of cannabis-derived products for medical patients and THC-free CBD products for consumers. Kanabo has conducted extensive research and development at its research centre in Israel to develop high-quality cannabis extract formulas, innovative medical-grade vaporisers and various non-smoking consumption solutions, making it easy and accessible for anyone in need of treatment.

Kanabo has also continued research and development activities on a range of unlicensed medical cannabis oils, which will be sold alongside its medical-grade vaporisers. It is intended that these products will be sold as unlicensed medicines in the UK and Germany.

 

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