Israeli medical cannabis company Together Pharma announced on Monday that it signed a deal with Hachshara Insurance Company, one of Israel’s oldest insurance companies, for a NIS 10 million ($2.79 million) investment. In exchange for the capital, Hachshara will hold 4.76 percent of Together’s shares.
Together said in a company statement that the investment brings its value to an estimated NIS 200 million ($55.78 million.)
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Medical cannabis company Together cultivates, produces and markets medical cannabis and is one of the first medical cannabis companies to be traded on the Tel Aviv Stock Exchange.
Nissim Bracha, CEO for Together Pharma, said in a statement that the company was currently in the midst of a “development boom” in Israel, with a growing facility in Ashkelon farm and plans to begin construction of an export plant for the EU-GMP-Cannabis export market in Germany.
“We view the investment by Hachshara as an expression of trust on the part of an institutional body in the company, in the management and in its economic potential. Raising this capital will help us realize and accelerate our strategic plan to expand our presence in Israel and abroad,” Bracha said.
The company stated that it is in the process of obtaining permits to export and distribute medical cannabis products throughout Europe. Together says it currently sells a total volume of approximately 80 tons of medical cannabis products per year in Germany and Canada.
In January, the Israeli government approved a medical cannabis export law after a freeze on cannabis exports by Prime Minister Benjamin Netanyahu.
Former Israeli police chief Yochanan Danino was appointed chairman of the board at Together in February.