Israel Archives - Green Market Report

StaffMay 13, 2022
shutterstock_1232348650.jpg?fit=960%2C720&ssl=1

4min5780

After the market closed on Thursday, IM Cannabis Corp. (CSE: IMCC) (NASDAQ: IMCC)reported financial results for the first quarter ending March 31, 2022 as revenues increased 169% year-over-year to $23.6 million. IMCC said that total dried flower sold in the quarter was 3,035kg at an average selling price of $6.23 per gram, compared to 1,185kg for the same period in 2021 at an average selling price of $4.94 per gram, derived mainly from the higher average selling price per gram the company recognized through its acquired pharmacies in Israel.

IMCC also delivered a net loss of $10.7 million in the quarter versus net income of $4.7 million for the same time period in 2021. Basic and diluted loss per share in Q1 2022 of $0.14 and $0.17, respectively, compared to basic and diluted income (loss) per share in Q1 2021 of $0.11 and ($0.06), respectively.

“We continue to progress well on our path to profitability and achieved another quarter of record revenues, which grew 169% year-over-year in the first quarter,” said Oren Shuster, Chief Executive Officer of IMC. “We execute key initiatives that drive margin expansion within each of our market segments and across our operating footprint, which reflect the benefits of integrating our global model. In Israel, we work to consolidate four of the country’s leading pharmacies and centralize our distribution and customer support to potentially create significant cost savings while strengthening our brand presence. We also increasingly leverage yield from our Canadian cultivation facilities for our products imported to and sold in Israel, which exhibit a gross margin profile that is nearly double that of products sourced from suppliers.”

While the company didn’t give a numerical forecast for the second quarter it did say that it continues to experience meaningful growth across its global platform, primarily in Israel and Canada, reflecting the continued execution of the company’s strategy, its accelerating international brand presence, its focus on cultivating premium flower, and its global distribution and supply chain model. On a preliminary, unaudited basis, IMC said it expects second quarter revenue and gross margin to increase sequentially.

“In Canada, our WAGNERS and Highland Grow brands have achieved market share leadership due to our relentless focus on delivering upon consumer expectations, with each brand holding a top three ranking in Ontario within their price segments. As we increase internal cultivation toward full capacity, we also focus on key operational initiatives to improve yield and reduce volume-based costs. These initiatives will help us reach positive Adjusted EBITDA, which we expect to achieve on a run rate basis in the second quarter of 2022, positioning us to be cash flow positive on a run rate basis in the following quarter.”


StaffApril 4, 2022
shutterstock_1232348650.jpg?fit=960%2C720&ssl=1

4min4700

Israeli-based cannabis company InterCure Ltd. (NASDAQ: INCR) (TSX: INCR.U) also known as Canndoc reported its estimated financial and operating results for the fourth quarter and year ending December 31, 2021. InterCure reported revenue of $33 million (NIS 80 million), higher than preliminary results and three times greater than the fourth quarter of 2020 and representing sequential growth of 29%. The estimated net income was $1 million (NIS 3 million) for 2021.

Full Year Results

InterCure also reported the fiscal year 2021 revenue and adjusted EBITDA of $89 million (NIS 220 million) and $23 million (NIS 55 million), representing an increase of 230% and 250% year-over-year, respectively. The estimated net income of $5 million (NIS 13 million) for 2021. The company said it had cash at year-end of $89 million (NIS 217 million).

During the third quarter, InterCure said it had received 5.2 million shares back from the sponsor of its SPAC transaction. According to the agreement the shares were subject to forfeiture from the SPAC sponsor based upon share price target criteria. The return of the shares to the company without cost adds a significant value of approximately $56 million by the current share price to all InterCure’s shareholders.

“2021 was another successful year for InterCure as we continued to execute our profitable growth strategy while strengthening our brands, manufacturing, distribution and consolidation leadership” said InterCure CEO Alexander Rabinovitch, adding “We achieved another significant milestone of almost 230% year-over-year growth in revenues with 250% growth in adjusted EBITDA, with one of the strongest balance sheets in the sector. In addition, we increased our number one market share in the leading medical cannabis market outside North America. Looking towards 2022, we are focused on executing our international expansion, including opening the first medical cannabis pharmacies in Austria and UK, entering the Australian medical cannabis market and laying down the infrastructure for entering the US market in the mid-term as federal legalization advances. Leading the consolidation process, continued expansion of our pharmaceutical grade cannabis dispensing operation, and our global expansion creates visible momentum for continued near and long-term profitable growth, generating value for shareholders and relief for patient communities.”

Since the quarter ended, InterCure has signed a definitive agreement with Altman Health, the leading Israeli wellness brand with distribution into 1,700 points of sale, focusing on the new Israeli CBD product market. Plus, the company added three new medical cannabis dedicated pharmacies to the Company’s chain, totaling 23 retail locations across Israel, out of which 15 are actively dispensing medical cannabis.

“The fourth quarter of 2021 is InterCure’s eight consecutive quarter with quarter-to-quarter high double-digit growth and sixth consecutive quarter with positive cash flow from operations” said InterCure CFO Amos Cohen, adding “Our focus and strong execution in 2021 positions us very well for the significant growth opportunities in 2022 and beyond. I am proud of the hard work and dedication of all our team members who make this success possible.”


Debra BorchardtFebruary 16, 2022
shutterstock_256424509.jpg?fit=1200%2C800&ssl=1

4min7620

Israeli-based cannabis producer InterCure Ltd. (NASDAQ: INCR) also known as Canndoc is buying medical cannabis company Cann Pharmaceutical Ltd. also known as Better in a deal valued at $35 million. It is expected to close at the beginning of the third quarter of 2022.

InterCure is Israel’s largest licensed cannabis producer and one of the first to offer Good Manufacturing Practices (GMP) certified and pharmaceutical-grade medical cannabis products. InterCure leverages its market-leading distribution network, international partnerships, and a high-margin vertically integrated “seed-to-sale” model to lead the fastest growing cannabis global market outside of North America. Better is a pharmaceutical-grade medical cannabis company, with leading expertise in cannabis cultivation, marketing, commercialization, and research of medical cannabis products for a variety of medical indications. InterCure said that the acquisition of Better is expected to further strengthen InterCure’s leadership position in the pharmaceutical-grade medical cannabis market. In addition, the acquisition is expected to create an immediate value creation opportunity with revenue synergies estimated at NIS 50 million for the upcoming year.

“Today’s announcement is a major milestone in the cannabis industry,” said Alex Rabinovitch, InterCure CEO, adding “InterCure and Better’s combined business operations are expected to create a new force in the international cannabis industry that will further accelerate our global expansion plans and opportunities and the consolidation process. We believe our combined business strengths and capabilities will help us to connect more effectively with new and existing patients in Israel and internationally. Once we complete this acquisition, InterCure’s portfolio will include additional leading brands, distribution network, and unique partnerships, positioning us to deliver sustainable value for all stakeholders.”

Better’s leading brand, Better is driven by a unique genetic portfolio that is consistently in high demand among medical cannabis patients both in Israel and internationally. Better’s advanced pesticide-free cultivation methods with both patient health and environmental advantages. Better are pioneers in formulating cannabis into a medical product in Israel and the rest of the world. In clinical research regarding the treatment for refractory epilepsy in children and adolescents who have not responded to pharmacological treatment, patients supplied with Better’s lead therapy strain EP1 had greater efficacy of reducing seizures and less adverse effects as compared to other medical cannabis-based products including Epidiolex.

Amos Cohen, InterCure CFO said: “InterCure is continuing its growth momentum while leading the consolidation of the medical cannabis market. This acquisition is a first of its kind and is another step in the implementation of our strategy and strengthens InterCure’s position.”


Debra BorchardtApril 2, 2020
shutterstock_1232348650.jpg?fit=960%2C720&ssl=1

6min21880

Israel has been the center of some of the strongest research on cannabis, but for years remained in the research only field. That is beginning to change as more Israeli companies are raising money and more cannabis is being imported to the country.

Panaxia Labs

Pharmaceutical company Panaxia Labs Israel Ltd. (TASE: PNAX) said that it completed a successful fundraising round of 17 million ILS (Israeli shekels)  or approximately $4.6 million by today’s currency exchange. The private placement consists of common stock and warrants to Israeli Institutional Investors: the provident funds, mutual funds, and portfolio management entities of Mor Investment House and Noked Capital Hedge Fund. Total gross proceeds raised, including the exercise of the option by the company, are 23 million ILS.

In connection with the offering, the company issued 6,319,703  shares of the company’s common stock at a purchase price per share of 2.69 ILS, and warrants to purchase an additional 5,055,762 shares of common stock at an exercise price of 4.00 ILS per share.

The company said it intends to use the proceeds from the financing to advance the execution of its strategic plans, especially the export, the marketing, and the sales in Europe. Among the investors: Panaxia Israel’s Chairman, Mr. Jonathan Kolber, CEO Dr. Dadi Segal, General Manager Assi Rotbart, LL.B., CTO Dr. Eran Goldberg, Mr. Ran Nussbaum, and additional Israeli and foreign investors. Exercise of the option is subjected to, among other conditions, the approval of Panaxia Israel shareholders’ meeting.

Supreme Shipment

The Supreme Cannabis Company, Inc.  (TSX: FIRE) (OTCQX: SPRWF)  said that it completed its first international cannabis shipment from Canada into Israel. The Canadian cannabis company said that it partnered with Breath of Life International Ltd., Israel’s largest and a leading producer of medical cannabis and cannabis products, to offer Truverra-branded premium medical cannabis to patients in Israel.

“This transaction represents a new international revenue opportunity for Supreme Cannabis and builds Truverra’s global medical brand in one of the most sophisticated medical cannabis markets in the world,” said Colin Moore, Interim President and CEO of Supreme Cannabis. “With the support of BOL Pharma, we navigated both Canada and Israel’s complex regulatory landscapes to achieve compliance with regulatory authorities in both countries, including Health Canada, the Canadian Food Inspection Agency and Israel’s Ministry of Health and Ministry of Agriculture and Rural Development. We benefitted from BOL Pharma’s skilled team, international experience and solidified the position as a leading medical cannabis company in Israel. As we pursue capital-light international opportunities, we will continue to look to Jeff Adams, Truverra’s CEO, and his exceptional team to build Truverra’s medical brand globally.”

“We are pleased to address the growing demand for premium indoor grown medical cannabis products in Israel through our first cannabis import from Canada. Supreme Cannabis is a partner that shares our high standards for quality and respect for patients and consumers,” said Dr. Tamir Gedo, CEO of BOL Pharma. “On March 30, Truverra products became available across pharmacies in Israel and we are already receiving positive feedback from patients.”

BOL Pharma has been involved in researching and developing cannabis-based products for 13 years. It is the largest medical cannabis company in Israel and the only one to handle all stages of cultivation and production, ensuring compliance with the strictest standards set by the Israeli Ministry of Health and EU-GMP conditions. BOL Pharma is distributing Truverra’s medical cannabis in 10-gram containers to its network of pharmacies across Israel.


Kaitlin DomangueNovember 13, 2019
shutterstock_1232348650.jpg?fit=960%2C720&ssl=1

3min28010

IM Cannabis Corp became the first Israeli medical cannabis operator to list its shares in Canada. It now trades under the ticker “IMCC” on the Canadian Securities Exchange. This listing follows Israeli-based IMC Holdings Ltd’s recent reverse takeover of IMC, formerly known as Navasota Resources Inc., that included a private placement offering of approximately CAD$20.4 million. The subscription receipts from the private placement purchase were converted into 19,460,527 Common Shares and 9,730,258 Common Share purchase warrants. 

The company has been listed on the Canadian Securities Exchange for about a week. At the time of this article, IMCC is listed at CAD$0.40 cents per share with its previous close at CAD$0.50 cents per share. Their current shares outstanding is CAD$145.74 million.

The company also excitedly announced its plan for expansion to Europe, specifically with its operations in Germany, and will soon include Portugal and Greece. Oren Shuster, the CEO of IMC says, “The team at IMC has done exceptionally well to position the Company as a market leader in the EU. Against a backdrop of challenging capital market conditions in the cannabis industry, investors have recognized the team’s stellar operating history in the medical cannabis sector…” 

Initial shipment from the EU-GMP facility in Europe to Germany is expected in Q2 2020.

IMC is an international medical cannabis company, and a well-known Israeli brand of medical cannabis products. In Europe , IMC is establishing a fully operational, vertically integrated medical cannabis business spearheaded by its distribution arm in Germany and augmented by strategic agreements with certified EU-GMP Standard suppliers, making it one of the only medical cannabis companies with fully integrated operations in Europe . IMC intends to leverage IMC’s brand to establish a foothold in emerging medical cannabis markets including Germany , Portugal and Greece . IMC’s core Israeli business includes offering branding, know-how and other intellectual property-related services to the Israeli medical cannabis market. Its key assets in Israel include commercial agreements with licensed producers and an option to purchase licensed entities. IMC has developed proprietary processes in its operations and is active in developing innovative technology for global medical cannabis consumers.

 


Video StaffFebruary 1, 2019

3min31871

SLANG Worldwide went public this week using the symbol SLNG and trading on the Canadian Securities Exchange. The shares were priced at $1.50 and jumped 33% on the first day of trading to $1.99. The company is a merger between Slang and Organa Brands, the vape powerhouse that has done over $100 million in sales since 2014. Firefly is also included in the new company.

Organigram Holdings Inc. reported its first fiscal 2019 quarter results with net sales for the three months ending November 30, 2018, of $12.4 million, up 419% from $2.4 million in Q1’2018.  Sales rose 287% sequentially as the impact of legal adult use sales in Canada continues to be felt on the income statement. Net income for the quarter was $29.5 million

Sproutly Canada, Inc. announced financial results for the quarter ending November 30, 2018. The company reported a net loss of C$2.8 million or $0.02 per diluted share for the quarter versus last year’s net loss of C$473,405 for the same time period. In the filing, Sproutly noted that it has not generated any revenues from operations and has incurred losses since inception. The company has an accumulative deficit of $12,312,832

Innovative Properties Inc. d/b/a Nabis Holdings entered into an agreement with Canaccord Genuity Corp. and Eventus Capital Corp. for a brokered private placement of debenture units of up to C$30,000,000.

Dixie Brands Inc.  (CSE: DIXI.U) and Khiron Life Sciences Corp. (OTCQB: KHRNF) have signed a binding letter of intent to establish a 50/50 joint venture to introduce a full line of cannabis-infused products to the Latin American market.

Israel is set to pass a law allowing exports of medicinal cannabis, the Finance Ministry said last week, as the county ramps up its attempt to woo more investment and bolster state coffers. The bill passed its third reading in the Israel parliament in December and is now waiting for the cabinet and Prime Minister Benjamin Netanyahu to sign it into law.

 


StaffJanuary 28, 2019
daily_hit004.png?fit=1200%2C500&ssl=1

6min13940

It’s time for your Daily Hit of cannabis financial news for January 28, 2019.

On The Site

SLANG Worldwide

Slang will be going public this week on Tuesday on the Canadian Securities Exchange in an IPO with an implied market value of $541 million using the ticker SLNG. The company was previously known as Fire Cannabis Inc. Slang is a combination of National Concession Group, better known as Organa Brandsand Firefly vape pens. Organa is based in Denver, CO and is best known for its product called O.penVAPE. In addition to the O.penVAPE line, Organa makes the Magic Buzz cannabis beverages, District Edible gummies and a line of dab products called Bakked.

The real key to the company though is Organa Labs, the part of the company that houses its custom extraction process. The company earns royalty payments through its ability to turn other company’s cannabis products into premium vape pens.

Organigram

Organigram Holdings Inc. (OTCQX: OGRMF) reported its first fiscal 2019 quarter results with net sales for the three months ending November 30, 2018, of $12.4 million, up 419% from $2.4 million in Q1’2018.  Sales rose 287% sequentially as the impact of legal adult use sales in Canada continues to be felt on the income statement. Net income for the quarter was $29.5 million, or $0.195 per share on a diluted basis versus a net loss of $(1.2) million, or $(0.012) per share in Q1’2018. It was also a big jump sequentially from the fourth quarter net income of $18.0 million, or $0.152 per share on a diluted basis.

Israel

Where Israeli firms once bought farms abroad to serve other markets, frustrated by a domestic ban on exports from Israel itself, this is now all set to change. The Middle East state is set to pass a law allowing exports of medicinal cannabis, the Finance Ministry said last week, as the county ramps up its attempt to woo more investment and bolster state coffers. The bill passed its third reading in the Israel parliament in December and is now waiting for the cabinet and Prime Minister Benjamin Netanyahu to sign it into law. The legislation allows the export of medicinal marijuana cannabis to countries that permit its use after receiving licenses from the health regulator.

In Other News

Driven Deliveries, Inc., (DRVD), previously, Results Based Outsourcing Inc. (RBOS)  announced that FINRA  has completed its review of the company’s ticker symbol change and established that the company will now trade on the OTC under the new stock ticker symbol “DRVD.” Additionally, the common stock has been assigned a new CUSIP number of 26209D105, in connection with their previously announced name change.

Delta 9 Cannabis Inc. (TSXV: NINE)  has entered into a definitive agreement to sell its 50% interest in the Delta West extraction facility to Westleaf Inc. (TSX-V: WL). Westleaf has agreed to issue an aggregate of 5,600,000 common shares in the capital of Westleaf in consideration for the acquisition of Delta 9’s 50% interest in the project. Closing of the transaction is expected to occur on or about January 31, 2019.

Innovative Properties Inc. d/b/a Nabis Holdings (CSE: NAB) (OTC: INNPF) has entered into a binding letter of intent to invest in a 70% interest of Hivemind Refinery, an established wellness product line of CBD-based wellness products in the United States. The investment into HIVEMIND expands Nabis’ investment portfolio to CBD edibles, water, drops, lotions, and other CBD wellness products across the spectrum and will fall under the Company’s lifestyle brand.

Village Farms International, Inc.  (TSX:VFF) (OTCQX: VFFIF)  announced that its 50%-owned joint venture for large-scale, low-cost, high-quality cannabis production, Pure Sunfarms, received from Health Canada the sixth amendment to the cultivation license for its 1.1 million square foot greenhouse in Delta, BC (the Delta 3 facility). This amendment permits Pure Sunfarms to expand its cannabis production area by approximately 138,000 square feet to a total of approximately 825,000 square feet.  With this amendment, the entirety of the first three quadrants of the 1.1 million square foot Pure Sunfarms facility is now licensed for cultivation. The newly licensed area is expected to be fully planted and in production this week.

 


Debra BorchardtJanuary 8, 2019
daily_hit004.png?fit=1200%2C500&ssl=1

5min11260

It’s time for your Daily Hit of cannabis financial news for January 8, 2019.

On The Site

KushCo Holdings

Cannabis packaging company KushCo Holdings, Inc. (OTCQB: KSHB) reported that revenue rose 186% in the fiscal first quarter of 2019 to $25.3 million. Revenue increased by 26.5% sequentially from $20 million in the fourth fiscal quarter of 2018.

The company said it had to weather several challenges. Cash dropped to $3 million as of November 30, 2018, versus $13.5 million as of August 31, 2018. KushCo said that rapid demand for product and timing of inventory purchases leading up to Chinese New Year resulted in a decreased cash position and overall working capital headwinds. Gross profits were equal to 12.8%, compared with 34.8% in the prior year period.

Headset

Cannabis data company Headset secured $12.1 million in funding in a Series A round of financing. The company, launched in 2015 by the trio that co-founded Leafly,  was able to raise the capital from another equally top-notch group of cannabis investors that included Poseidon Asset Management and AFI Capital Partners and Canopy Rivers Inc. (TSXV: RIV).

Headset said that the money would be used to improve current products and services; expanding the company’s offerings to additional U.S. states and international markets, and support Headset’s partnerships and strategic alliances. It will also help the company serve new customers from the consumer packaged goods, beverage/alcohol, and financial industries, who are taking an increased interest in cannabis.

In Other News

Aurora Cannabis Inc (NYSE: ACB) said it expects to report revenue between $50 million and $55 million for the fiscal second quarter ended Dec. 31. This figure is higher than the $11.7 million posted for the same period last year and the $29.7 million reported in the previous quarter. That should have been welcome news but analysts had expected $67 million and the stock tumbled.

CannTrust Holdings Inc. (TSX: TRST) applied to list its common shares on the New York Stock Exchange.

The Knesset, the legislative branch of Israel, overwhelmingly approved the medical cannabis export law in all three readings with final approval of 21-0. The next step is for Netanyahu and his cabinet to give the final approval of the bill. Last time a cannabis export law was sent to Netanyahu, it was vetoed but lawmakers are optimistic that it will pass this time

Isracann Biosciences Inc., an Israeli-based cannabis firm, announced today it has completed a letter of intent for up to $15 million in funding to break ground on outdoor greenhouses for cannabis cultivation as the company plans to become the world’s foremost cannabis producer specializing in low-cost, superior quality cannabis.

HARDCAR Distribution announced today that it has secured the ability to do $1 billion in escrow.

Univo, the public company controlling the full medical cannabis supply chain, signed a partnership with a cannabis farm in Israel that will enable Univo to deliver 3 tons of cannabis a year for at least 3 years. Over the course of three years, this deal will be worth around $12.5 million.HARDCAR Distribution announced today that it has secured the ability to do $1 billion in escrow. The company has been working diligently to support the cannabis industry over the past 3 years, searching for ways to help their clients in any way possible.


William SumnerMarch 29, 2018
EVIO2.jpg?fit=825%2C619&ssl=1

3min25161

Cannabics Pharmaceuticals announced today that it has received positive results from a pre-clinical study on the anti-tumor effects of cannabinoids on cancerous tumor cells. Using cancer cells taken from patient blood samples, researchers found that the cells were sensitive in various ways to both THC and THCA, which are the main active compounds in cannabis.

To find this out, researchers isolated circulating tumor cells, which are cancer cells that have detached from the main tumor and circulate throughout the body, in blood samples taken from breast cancer and prostate cancer patients. They then treated the cells with either THC or THCA and then monitored cell viability over time.

Researchers found that the compounds had different cell killing effects based on the dosage, type of cancer, and the substance’s composition. In a statement, Dr. Eyal Ballan, Cannabics co-founder and chief technology officer, praised the study results.

“The results of this latest study further validate Cannabics’ ability to perform cannabinoid sensitivity tests on liquid biopsies and indicate in vitro antitumor activity of these compounds, which should be further examined in clinical studies. While the current use of medical cannabis is largely used for palliative purposes when it comes to cancer, we are seeing a growing number of clinical studies on the antitumor effects of cannabinoids and predict we will start to see eventual FDA approvals of cannabinoids to treat various types of cancer. Our goal is to support the personalization of these treatments with our drug sensitivity and therapy monitoring tests,” commented Ballan.

These latest results come as Israelis await a decision from the country’s embattled Prime Minister, Benjamin Netanyahu, as to the status of medical cannabis exports. Earlier in February, Netanyahu rejected moves to allow medical cannabis exports, sending the issue back to advisers for further assessment. Although Israel’s Agriculture, Finance, and Justice ministries are strongly in favor of the measure; it is unclear as to how Netanyahu will rule. A decision is expected in the coming weeks.


Robert LakinFebruary 27, 2018
shutterstock_755032054-1.jpg?fit=960%2C698&ssl=1

5min49970

The future of Israel’s $1 billion-plus medical cannabis export industry has been tossed back to Prime Minister Benjamin Netanyahu for a decision after consideration by the parliamentary committee overseeing marijuana policy.

Cannabis is classified as a drug according to Israeli law and any export plan requires the prime minister’s approval.

Earlier this month, in what was seen as deference to the Trump administration’s opposition to legalized marijuana, Netanyahu sent the plan back to advisers for reassessment, bringing export planning to a halt. The prime minister is currently embroiled in multiple investigations, including an influence-peddling scandal that threatens to bring down his ruling coalition that has been otherwise supportive of medical cannabis reform.

The Agriculture, Finance, and Justice ministries are strong supporters of reform legislation as marijuana is considered to be one of the country’s “crops of the future,” according to the Agriculture minister. He denied media reports that the Trump administration was influencing Israeli marijuana export policy. A decision by Netanyahu is expected within a month.

“There are tens of millions of people in the world for whom this is the last resort,” said Israel’s Minister of Agriculture and Rural Development Uri Ariel during the Knesset (parliament) committee meeting on Monday. “We’re not talking about any kind of narcotic, but about medicine. Israel shouldn’t export any raw material, rather medicine created following studies, like any other kind of pharmaceutical,” he said, according to Israeli business daily Calcalist.

Europe Seeks Israel Exports

Several countries have expressed interest in purchasing medical cannabis from Israel, including European countries where medical cannabis usage is growing, according to Israeli marijuana industry accelerator iCann. “Some nations, like Germany, currently rely solely on foreign producers,” vice president Sari Klaff wrote on the company’s blog earlier this month. After Netanyahu initially sent the policy back for review, iCann said the delay in a decision on Israel’s export of medical cannabis set the stage for a “staggering” potential financial loss.

However, if your horizon is “long-term growth and sustainability, then it doesn’t matter if the export is approved today, in a month, or in three months time,” Saul Kaye, the company’s CEO, said. “Export will happen from Israel.” The firm’s annual CannaTech event, spotlighting Israeli and global cannabis innovation, is scheduled over a three-day period mid-March in Tel Aviv.

Challenges to Nascent Industry

The policy would go a long way to addressing concerns about the quality of crops grown for export. In December, the director of the Health Ministry’s medical cannabis unit told the parliamentary committee that “most of what’s currently grown in Israel either does not meet the standards or is based on strains that have been smuggled into the country illegally.” Until that is remedied, according to director Yuval Landschaft, “we cannot establish an export industry based on strains that were smuggled in because we cannot export stolen goods.”

The Israeli government sees a significant economic opportunity in medical cannabis. Various published forecasts peg the sector to be worth from $260 million to as much as $1.1 billion by 2022. Earlier this year the government allocated the equivalent of $2.8 million for more than a dozen studies on boosting medical cannabis growing.

Eight growers have previously been licensed by the government to grow crops for export; Almost 400 Israeli farmers have applied for cannabis growing permits. The eight approved producers combined are permitted to grow as much as 25 tons of marijuana a year. Current demand is estimated at 10 tons, implying that an additional 15 tons could be grown without additional permits.

 

 


Choose Your News

Subscribe to the Green Market Report newsletter that gives you original content delivered straight to your inbox.

 Subscribe

We respect your privacy. See our privacy policy.


About Us

The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


READ MORE



Recent Tweets

@GreenMarketRpt – 12 hours

Beau Wrigley at Center of Litigation over Failed Chicago Cannabis Deal

@GreenMarketRpt – 13 hours

see what happens when you try to go outside and have fun? Feel better soon.

Back to Top

Choose Your News

Subscribe to the Green Market Report newsletter that gives you original content delivered straight to your inbox.

 Subscribe

We respect your privacy. See our privacy policy.