Israeli Startup Cannabics Pharmaceuticals Set To Raise $4M

February 16, 2016 | Israeli cannabis startup Cannabics Pharmaceuticals, is planning a $4 million private placement, according to Globes.  The company is currently conducting a roadshow for investors in Israel, the US, and Europe, accompanied by the investment banking division of the Aloni Haft Group. The private placement is designed to support commercialization of the technology and finance a clinical trial at Rambam Medical Center. Founded in 2012 by cofounders CEO Itamar Borochov and Chief Scientist Dr. Eyal Ballan, Cannabics has developed a delayed release pill designed to improve the quality of life of cancer patients at an advanced stage of the disease. The company is also developing a system for evaluating biopsies so that doctors will have a better indication of which cannabis treatment is best for the patient. The company presentation for investors estimates the medical cannabis market potential at $3.6 billion in the US alone, and the company optimistically projects a rise in its sales from $750,000 in 2016 (from the pills only) to $84 million in 2019 (sales of both pills and systems). “Within five years, the legal cannabis industry is expected to overtake the US movie industry and the organic food industry,” the company states in its presentation.