Together Pharma (TASE: TGDR), which specializes in cultivating and producing medical cannabis, has reported the completion of a major investment agreement with an institutional investor.
Hachshara Insurance Company will invest equity capital of NIS 10 million in Together Pharma at a company valuation of NIS 200 million (at a price of NIS 4.14 per share, a 4.5% premium above the share price at end of trading yesterday).
Following completion of the share allocation, the Hachshara Insurance Company will hold 4.76% of the company's shares. Hachshara Insurance Company's investment is a long-term investment, which expresses a vote of confidence in the company and its management.
Together Pharma CEO Nissim Bracha said, "We are in full swing in development in Israel and at the beginning of cultivation in the coming weeks at our Ashkelon farm as well as the start of construction of a factory for exporting German EU-GMP standard cannabis and the start of marketing of medical cannabis to pharmacies, and R&D in Uganda as the first crop begins and at the beginning there of construction of a factory for the export of EU-GMP standard cannabis."
"We see the investment by Hachshara as a vote of confidence by an institutional body in the company, in the management and in the economic potential of the company. Raising the capital will help us fulfil and speed up our strategic plan to expand the company's presence in Israel and abroad while creating value for shareholders"
Together Pharma's chairman is former Israel police chief Yohanan Danino.
Published by Globes, Israel business news - en.globes.co.il - on June 11, 2019
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