KANABO Group Plc (LSE:KNB), the pan-European medical cannabis Company focussing on the development and distribution of cannabis-derived products for medical patients and wellness CBD consumers, announces it has signed a Memorandum of Understanding (“MoU”) with Forbe Ltd for the sale of CBD products in Israel.
Forbe Ltd counts amongst its customers two of the largest national health providers in Israel (directly and indirectly) and the second largest pharmacy chain in the country.
Under the MoU, Kanabo will be responsible for procuring and processing CBD products according to regulatory guidelines and Forbe will be responsible for marketing, distribution and sales as well as acquiring the required licenses and import approvals. Forbe will work exclusively with Kanabo to distribute the products covered by the MoU.
CBD to be Excluded from the Dangerous Drugs Ordinance in Israel
The regulatory landscape for the sale of CBD in Israel is becoming increasingly positive following the announcement on 3 March 2022 by the Ministry of Health to exclude substances or products containing the CBD component from the Dangerous Drugs Ordinance.
Furthermore, the Minister of Health stated in his resolution that over the next two years, the Ministry of Health will promote research and development activities, alongside the development of regulatory capacity in the Ministry’s departments, so that products containing CBD could be marketed in Israel.
Israel is therefore a significant addressable market for the Kanabo and Forbe collaboration with a deregulated market estimated to be worth up to US$475m in total by 2025 (according to a financial report from Deloitte, prepared for the Manufacturers Association of Israel).
Madonna Hovel, CEO of Forbe Ltd commented; “I am delighted to sign this MoU with Kanabo thereby taking us into the emerging CBD markets in Israel. Kanabo Group plc has deep domain expertise in procuring and processing high-quality CBD products. I’m proud of this collaboration between Forbe and Kanabo and I’m sure it will position Kanabo as CBD market leader by providing our customers’ needs for high-quality products and services in this high growth market in Israel.”
Avihu Tamir, CEO of Kannabo Group plc, added; “This MoU with Forbe Ltd is a key step in our stated strategy to become a leading Company within the CBD consumer markets. We see Forbe Ltd as a key strategic partner in Israel as we further develop and commercialise our CBD products for millions of customers.”