CannoMed to cultivate medical cannabis in Galilee

Manor and Kfir Gindi  / Photo: Dan Stern

The company, controlled by Manor and Kfir Gindi, is to set up an EU-GMP standard indoor cultivation facility in Ziporit, to grow 10 tons of produce annually.

Israeli medical cannabis company CannoMed (TASE: CNMD) has signed a long-term lease for 11,000 square meters in the Ziporit Industrial Zone near Nazareth in the Galilee. The company, which raised NIS 27 million in January and recently merged with EU Biopharm, will be a 6,125 square meter indoor facility on the land for cultivating 10 tons of medical cannabis annual with the EU-GMP standard for the European market.

CannoMed's Cano 1 indoor facility will include areas for cultivation and propagation of medical cannabis as well as a factory for drying and packing the dried inflorescences and extracting oils and in addition a trading house - everything under one roof. Due to the high standards of the facility, CannoMed intends targeting the European market with its produce and is planning to comply with the strict EU-GMP European standard. The planned facility's production capacity will be about 10 tons per year and the start of operations is planned for the fourth quarter of 2020.

The facility will be built in two stages with the first stage built as a large room, which meets the EU-GMP standard, and which can produce one ton of inflorescences per year. In the second stage, with the receipt of the relevant building permits, the facility will be completed with a production capacity of 10 tons including the factory for extracting and packing. The revenue from the new facility, on the assumption of full production, could reach about $45 million annually.

CannoMed already currently has distribution agreements with European customers, including a distribution agreement with ACA-Muller, a veteran company which imports medicines from the European Union to the German market. The agreement with ACA-Muller is worth about $13.5 million annually, over five years. CannoMed also recently announced that it had acquired control (55%) in a partnership, which owns a pharmacy in Central Israel, and which has a license to sell medical cannabis. The pharmacy's annual revenue for 2020 is estimated to be about NIS 22 million.

In addition to the indoor facility, the company owns an active medical cannabis farm in the Jordan Valley, which is currently undergoing expansion to an overall area of 2.75 acres of greenhouses for cultivation, of which the company is currently already cultivating 0.9 acres of it. CannoMed operates throughout the value chain of the medical cannabis industry and own 17 genetic lines that have been imported from a supplier in the Netherlands.

The controlling shareholders in CannoMed are Manor and Kfir Gindi - Israeli businessmen and real estate developers who built the Gindi TLV fashion mall in Tel Aviv and are part of the well-known extended family of real estate developers. Other shareholders among the controlling shareholders in CannoMed, are Adv. Hagit Weinstock, Adv. David Zehavi, the cofounders of the Weinstock Zehavi law firm, who advised on the merger between EU Biopharm and CannoMed, including raising capital for the public company and continuing to support routine activities.

Published by Globes, Israel business news - en.globes.co.il - on May 20, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

Manor and Kfir Gindi  / Photo: Dan Stern
Manor and Kfir Gindi / Photo: Dan Stern
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