Ehud Barak’s cannabis co Canndoc, owned by Intercure (TASE: INCR) is considering a merger with Israeli medical regenerative company Cellect Biotechnology (Nasdaq: APOP). The two companies have signed a binding Letter Of Intent (LOI) for a merger, selling of cannabis and R&D collaboration to reduce the usage of opioid painkillers.
As part of the deal, Canndoc, whose chairman is former Israeli prime minister Ehud Barak, will supply Cellect with a minimum of six tons of GMP pharma grade cannabis products worth $18 million, over the next 5 years.
Intercure and Cellect have also signed a non-binding LOI for a full merger, under which Cellect will acquire from Intercure all of Canndoc outstanding shares, in exchange for additional Cellect ADRs, amounting to 95% (93% on a fully diluted basis) of the merged company.
Canndoc has been collecting clinical evidence on the effects of medical grade cannabis on pain management over the past 12 years, treating thousands of patients, primarily in oncology, and its accumulated data has shown a reduction in patient opioid consumption.
The evidence from the scientific literature and accumulated experience in the treatment of medical cannabis in pain management with Canndoc's patients, indicate a reduction in the dosage of opioid drugs and exceptional treatment outcomes," commented clinical immunologist Prof. Zvi Bentuich, a member of the scientific Canndoc’s advisory board and an international expert on AIDS research. He also served as Chief Scientist of Tikun Olam, one of Israel’s first cannabis companies, where he oversaw the clinical trials in medical cannabis.
Cellect will acquire from Canndoc all rights to the use of Canndoc products for the reduction of opioid usage, including accumulated data, as well as on-going and pipeline of clinical trials.
Intercure also reported today that it has signed an agreement to sell up to 10 tons of GMP medical grade cannabis products to Israel’s largest pharmacy chain Super-Pharm over the next 3 years. The company did not reveal the financial value of the deal, but industry sources believe it to be worth about $38 million.
Super-Pharm will sell Canndoc’s products in its 41 branches which have approval from Israel's Ministry of Health to sell and distribute medical cannabis products.
Supper-Pharm CEO Nitzan Lavi said, "We are looking to provide our patients with the best service and highest quality to meet the growing demands for medical cannabis products. I welcome the strategic partnership with Canndoc which will enable us to increase our GMP standard medical cannabis inventory."
Published by Globes, Israel business news - en.globes.co.il - on March 5, 2020
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