TIDMKNB
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 GBP6.0 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 GBP1.0
million and used GBP750,000 of the funds to make a Pre-IPO
acquisition investment in Hellenic Dynamics S.A.
-- A further GBP374,000 was raised during the period from the exercise of warrants.
-- The Company's cash balance at the end of the period was GBP5.9 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 Tel: +44 (0)20 7469 0930
Adviser)
Lucy Williams / Charles Goodfellow Tel: +44 (0)20 7469 0930
(Corporate Broker)
Vox Markets (Investor Relations)
Kat Perez KanaboGroup@voxmarkets.co.uk
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 GBP6M.
Additionally, on 24 May 2021 the company raised GBP1M 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 GBP1.2m 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 GBP2.4m, 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 GBP5.9m 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 The Company continues to develop its strategic relationships
& with cultivators of high quality which provide sustainable
DISTRIBUTION 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 Hellenic
& DISTRIBUTION
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
(GBP750,000) 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
GBP30M 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 GBP '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 GBP '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 David Tzur
of the
financial statements Chairman of the
board
STATEMENTS OF PROFIT OR LOSS
For the
year ended
December
For the 6 months ended 31,
------------------------ ------------
Unaudited Audited
------------------------ ------------
2021 2020 2020
------------- --------- -----------
Note GBP '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 Share Reserve from Retained Reverse Foreign Total
capital premium share-based earnings acquisition exchange equity
payment (accumulated reserve reserve
transactions deficit)
-------- ---------- ------------ ------------ -------
GBP '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 Share premium Reserve from Retained Foreign exchange Total
Capital share-based earnings reserve Equity
payment (accumulated
transactions deficit)
-------- ------------- --------------- ---------------- -------
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 Share premium Reserve from Retained Foreign exchange Total
Capital share-based earnings reserve Equity
payment (accumulated
transactions deficit)
-------- ------------- ---------------- ---------------- -------
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 year
For the six months ended December
ended June 30, 31,
-------------------- ---------------
2021 2020 2020
----------- ------- ---------------
GBP '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 GBP0.065 (which was used for the
fund-raising on the same date), the Company's investment in Kanabo
Research Ltd is valued at GBP15,000,000.
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 GBP1,911,000 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 (GBP1,911,000) and the
fair value of the net assets assumed per above of GBP739,396
resulted in GBP11,172,131 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:
GBP'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 GBP750,000 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
December
June 30, 31,
---------- --------
2021 2020 2020
---- ---- --------
GBP '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 Half year
ended ended Year ended
30.06.21 30.06.20 31.12.20
Loss attributable to equity holders ( 2,377
of the Company (GBP'000) ) (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 RTO(1) 230,769,210
Shares issued in placing and subscriptions
16 February 2021(2) 92,307,693
Shares issued on account of fees 615,384
Share issued in placing and subscriptions
24 May 2021(3) 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 GBP 6,000,000 before costs
3. On 24 May the company issued 4,545,454 shares raising GBP 1,000,000 before costs
12. Share based payment
a. Warrants
Number of Weighted average
awards 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
Weighted
average of
the exercise
Number of price in GBP
options
------------ ---------------
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
Weighted average
of the exercise
price in GBP
Number of
options
------------ ------------------
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.
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END
IR DKDBQPBDDKKB
(END) Dow Jones Newswires
October 22, 2021 02:00 ET (06:00 GMT)
Kanabo (LSE:KNB)
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Kanabo (LSE:KNB)
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