Cannabis co Cannbit raises NIS 31.4m on TASE

Cannabis Photo: Shutterstock

The round is the largest public offering ever by a cannabis company on the TASE.

Cannbit yesterday completed the largest public offering by a cannabis company in Israel on the TASE so far, raising NIS 31.4 million. The offering was slightly over-subscribed; the company raised almost the maximum amount it wanted at the price that it wanted.

Cannbit issued shares at NIS 18 per share, 10% below the share's closing price yesterday and 17% below the price before trading began yesterday and before the offering was announced.

Cannbit's market cap at yesterday's closing price was NIS 183 million. Cannbit is nevertheless on the TASE watchlist because of the proportion of the public's holdings (Cannbit was merged into a stock exchange shell). According to the company's report yesterday, the offering will put it back on the main TASE list.

Cannbit is currently establishing a cannabis-growing farm, which it plans to operate independently. The company plan is to grow cannabis for Tikun Olam until the latter's independent facility is ready. The company recently obtained approval for importing the seeds for growing its first plants to demonstrate the propriety of its growing to Ministry of Health officials in order to meet the IMC-GAP standard. Only after growing 180 seedlings for inspection and destroying them will it be able to grow for the market.

Cannbit recently signed a cooperation agreement with Herzliya Medical Center, a private hospital, for the supply of its product to the hospital for treatment and research when Cannbit obtains marketing approval for them. The company also has a marketing agreement with Canadian company Namaste, listed on the Canadian Venture Exchange (CVE) at a $122 million market cap.

Cannabis companies listed on the Tel Aviv Stock Exchange (TASE) are now translating their rising values into investments in the companies. Investments first came from private sources, such as the Gary Fegel group, which invested $12 million in InterCure; the Barak Rosen group, which invested a total of NIS 32 million in Cannbit; and Ido Hagag, who invested NIS 8 million in Univo Pharmaceuticals.

The next stage is raising money from the public and investment institutions. Together Pharma signed an agreement to raise NIS 10 million from Hachshara Insurance Holdings, and now Cannbit has had its successful offering.

Published by Globes, Israel business news - en.globes.co.il - on April 21, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

Cannabis Photo: Shutterstock
Cannabis Photo: Shutterstock
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