The cannabis products maker has agreed to acquire Hellenic Dynamics shares worth £ 750,000 as part of the company’s proposed IPO on the LSE

() said they raised £ 1m for a share placement while also showing an investment in medical cannabis cultivator SA prior to going public.

The cannabis-derived product developer announced it would raise funds from new and existing investors by placing around 4.5 million shares at a price of 22p each, a 10% premium over last Friday’s closing price has applied.

READ: Medical cannabis producer Hellenic Dynamics plans to join the burgeoning London sector

Meanwhile, the London-listed company has announced that it has acquired £ 750,000 worth of Hellenic shares as part of a broader strategic partnership between the two companies.

As part of a Memorandum of Understanding (MoU), Kanabo has announced that it will purchase up to 1,000 kilograms of EU-GMP-certified cannabis flowers per year from Hellenic with predefined THC or CBD contents for the subsequent extraction of standard medicinal oils.

Kanabo receives its shares as part of Hellenic’s planned IPO on the London Stock Exchange through a reverse takeover of an AIM-listed cash shell. The prospective acquisition is “well advanced” and further announcements are expected shortly.

“This agreement and investment in the business underscores the quality and scope of our special growing ambitions. We look forward to working closely with Kanabo and this agreement underscores the demand and growth opportunities in the European medical cannabis market,” said Davinder Rai, Vice President of Hellenic said in a statement.

“The MoU with Hellenic Dynamics and the subsequent investment are part of Kanabo’s strategy to rapidly expand its core business while at the same time making complementary, synergetic acquisitions and investments in medical cannabis in order to leverage our position as a publicly traded company. We welcome the enthusiastic Investor support for our approach, “added Kanabo CEO Avihu Tamir.