Kaneh Bosm BioTechnology Inc (CSE:KBB, OTC:KNHBF) revealed that it had entered the Danish cannabis market - with a deal to buy 100% of Danavian Cannabis Ltd.
Danavian controls licences for growing cannabis and manufacturing, and Kaneh said its entry into Denmark mirrors industry peers like Canopy Growth Corporation, Green Organic Dutchman Holdings, Aurora Cannabis Inc and CannTrust Holdings.
Legalised medical cannabis
Denmark legalised medical cannabis at the beginning of the year, following a unanimous vote by its parliament and since then the government has displayed strong support for cannabis development, in the forms of research grants and tax incentives.
"Kaneh Bosm now holds claim to one of twelve highly coveted Danish cannabis cultivation and manufacturing licences," said Eugene Beukman, chief executive.
"Denmark has proven to be an environment conducive to the continued development of sustainable and forward thinking cannabis enterprises.
"The company looks forward to capitalising on Denmark’s tactical position within the European Union and well-funded healthcare system.”
He added that the acquisition would create material synergises with Kaneh Bosm’s existing European distribution channels and cultivation capabilities.
"This agreement further enhances the company’s vertically integrated, European seed-to-sale aspirations. Danavian and Sababa Sciences plan to apply for local approvals to manufacture and distribute Sababa’s patented, formulated products," he added.
Significantly, Davanian has hired Israeli cannabis cultivation and management company, Sababa Sciences Inc, which will provide end-to-end management.
Danavian and Sababa Sciences have designed a 55,000 sq ft fully automated greenhouse facility that will meet IMC-GAP, ISO:9001 and European GMP standards.
Finished cannabis and cannabis derivatives produced by Danavian will be sold through Denmark’s retail pharmacy network.