Israeli Medical Cannabis Firm Signs Deal To Sell 5 Tons Of Cannabis Oil In Canada
April 16, 2018 | Israeli cannabis company Together Pharma has announced that its subsidiary Globus Pharma, specializing in the medical cannabis sector, has signed a Memorandum of Understanding (MOU) to sell medical cannabis or oil to an unnamed Canadian company with a license to grow, produce and import medical cannabis, a statement from the Israeli firm said. Under the agreement, the Canadian company will buy 50 tons of dried inflorescences (flowers) of cannabis each year or its equivalent, five tons of medical cannabis oil from Globus Pharma. The companies will also collaborate in R&D and promoting technologies in the medical cannabis sector. The companies estimate that the sales revenue of this deal will be between $3.17 and $4.7 per gram of inflorescence. Globus Pharma will provide the Canadian company with medical cannabis from farms in Israel “subject to receiving an export permit for medical cannabis” or from its farm in an overseas country, which has an export agreement with Canada. Israel is currently going through a medical cannabis export freeze ordered by Prime Minister Benjamin Netanyahu in February, which suspends reforms that would allow for the legal export of cannabis. The state and its cannabis industry stand to lose out on an opportunity to bring in $1 billion in annual revenue, but while Israeli cannabis farmers were angered by the decision, many of Israel’s leading cannabis companies and supporters remain optimistic that the ban will be lifted soon. Also, many of the Israeli companies, such as Together, are continuing to market and sell their medical cannabis products through overseas companies. The Canadian company is currently applying for a license to market and sell its own medical cannabis products in Canada and abroad. The company has told Globus that it expects to receive the license within four to five months. Globus Pharma already has a sales agreement with a German company for 25 tons a year and a sales agreement for three tons a year with another Canadian company. Together also recently reported that “it will work to establish up to 25 acres of greenhouses in a country outside of Israel in a self-financed project,” according to the press release.