Pnina Rosenblum Cannabis, founded in in 2017, is planning an IPO on the Tel Aviv Stock Exchange (TASE). The company develops cosmetic products containing CBD, the non-intoxicating compound in cannabis. Marketing cosmetics containing CBD is currently banned in Israel, but many countries (mainly in Europe) allow them to be sold, including countries where cannabis has not been legalized. The company plans to manufacture and market its CBD products in the UK, which will not require export approval in Israel.
Pnina Rosenblum Cannabis will try to do what large cannabis companies have not hitherto dared to do: enter the TASE through its own IPO, rather than through a merger with a stock exchange shell. The company is taking this road for public relations purposes, and in order to differentiate it from other cannabis companies in Israel. Pnina Rosenblum Cannabis feels comfortable holding an IPO, because it has already obtained a commitment in principle to participate in it from prominent business people, such as Teddy Sagi (slated to be the leading investor), Adi Zim, Chaim Hurvitz (who is already involved in cannabis company Univo Pharmaceuticals), Rami Levy, and Avi Benayahu. Pnina Rosenblum Cannabis has already contracted an agreement with a distribution company for its products in the UK, and this company is also slated to take part in the TASE IPO.
Zim told "Globes," "We believe very strongly in the company, because it's not just another cannabis grower. It has ready products." Preparations for the IPO are still in the early stages, and Pnina Rosenblum is currently meeting with underwriters.
Pnina Rosenblum Cannabis is aiming at a NIS 120 million valuation for its IPO. In order to achieve this, it is possible that the IPO will include some of Pnina Rosenblum's cosmetics activity, which is already posting stable revenue, and this could boost its valuation substantially. Pnina Rosenblum previously considered holding a TASE IPO for her cosmetics business, and prepared a prospectus as early as 1994. She announced that she was considering this again in 2005, but nothing happened.
Published by Globes, Israel business news - en.globes.co.il - on September 2, 2019
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