Key Points

• Kanabo was the first medicinal cannabis company to IPO on the London Stock Exchange.
• The company has started generating revenues following the successful launch of its flagship VapePod product.
• Kanabo acquired a telehealth GP service at a price of £14m in February 2022 to gain direct access to patients.

What is Kanabo?

Kanabo (LSE:KNB) was the first medicinal cannabis company to IPO on the London Stock Exchange, but its share price hasn’t been performing well recently. Owing to a huge investment in R&D, the company produces high-quality cannabis-derived products for medical patients and non- THC products for CBD consumers.

Kanabo’s medical-grade VapePod® device has proven to be a game-changer for e-cigarette users. In fact, these cannabis vaporisers are not only high in quality but a safer and healthier option. Undoubtedly, the company makes use of the best and most updated technologies to provide a safe and effective user experience.

With that in mind, let’s take a look at what’s going on with the Kanabo share price this year.

Looking at the Kanabo share price

The company has started generating revenues following the successful launch of its flagship VapePod product. The financial figures have yet to be released. However, with Kanabo focused on the fastest-growing segment of the cannabis market, analyst forecasts are optimistic.

In addition, the company’s acquisition of Materia, a Canada-based cannabis producer and distributor, has opened the door to the retail market. As a result, the medicinal cannabis company has also expanded towards Europe’s largest medical cannabis market Germany, and throughout the UK via HandPicked, a British CBD marketplace owned by Materia.

The CEO has also announced further expansion plans through new partnerships with retailers both in-store and online.

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Risks surrounding the Kanabo share price

Despite making progress, the Kanabo share price has not performed well in recent months. There are undoubtedly multiple contributing factors to the lacklustre performance. However, some key reasons include its lack of historical revenue, limited delivery options, and restricted access to patients.

These will remain a prominent threat for many years to come. But management has begun addressing these issues. The introduction of VapePod solved the delivery problem. This is an efficient way to deliver medicinal cannabis to patients and that too in a precisely measured dosage.

Secondly, the limited access to patients posed a huge threat to the company. But, Kanabo recently acquired a telehealth GP service at a price of £14m in February this year. This platform should enable the group to directly talk with patients and recommend its CBD products where appropriate.

The European Cannabis Market is expected to hit €3.2bn by 2025. Hence, the demand is expected to rise and presents a substantial opportunity for Kanabo and its share price. Its recent acquisitions and product launches place the group in a favourable position. However, only time will tell whether the management will be able to capitalise on this opportunity.

Learn more about Kanabo

• The Kanabo share price: should I buy this cannabis stock?
• Is Kanabo a good investment? Here’s what I think
• Is the Kanabo share price about to explode?
• The Kanabo share price is falling. Should I buy now?
• What are the best cannabis stocks to buy?

Saima Naveed does not own shares in any of the companies mentioned. The Money Cog has no position in any of the companies mentioned. Views expressed on the companies and assets mentioned in this article are those of the writer and therefore may differ from the opinions of analysts in The Money Cog Premium services.