Israeli Medical Cannabis Firm Signs $300M Deal In Canada
June 17, 2018 | Israeli cannabis firm Together Pharma has announced that its subsidiary Globus Pharma, specializing in the medical cannabis sector, has signed an agreement to supply cannabis to a Canadian company, following an April announcement that it signed a Memorandum of Understanding (MOU) with the unnamed Canadian company to sell medical cannabis or oil with a license to grow, produce and import medical cannabis. The deal has a minimum estimated income of about $300 million over two years, a statement from Together Pharma said.Under the binding agreement, the Canadian company has committed to purchase five to 50 tons of dried cannabis inflorescences, or 500 kilograms to five tons of cannabis oil in 2019. In 2020, the Canadian company will purchase 20 to 50 tons of dried inflorescences or two to five tons of oil from Globus Pharma. Together said the Canadian company will pay at least $3 for one gram of dried dried inflorescences, or a minimum of $30,000 for one kg of cannabis oil. Together Pharma CEO Nissim Bracha says the company is “delighted with the signing of the first binding agreement” and that it will “yield large-scale income” for the company. “It is our intention to supply the cannabis from our farm in Israel or Africa, both of which are in the process of being swiftly built, and in the future will already supply the first produce by the first quarter of 2019,” he said in a statement from the company. Israeli government officials are still split on whether to approve cannabis export licenses for companies in Israel and have not yet passed a law allowing Israeli cannabis firms to do. Bracha, nevertheless, says Together expects “to receive approval to export from Israel” although the success of our operations in not dependent on it.