Canndoc, a subsidiary of Intercure Ltd. (TASE: INCR), has announced the signing of a cooperation agreement with North American company Tilray, a leading global cannabis company with a $1.7 billion market cap on Nasdaq. The agreement contains clauses concerning cannabis imports to Israel and exports at a later stage.
Under the agreement, Canndoc will soon begin importing cannabis to Israel. The company said that the first cannabis delivery in the deal was already on the way to Israel. The agreement is the first legal commercial cannabis import deal in Israel.
The agreement enables Canndoc to import 2.5 tons of Tilray's products for marketing in Israeli pharmacies under the new regulation. The first delivery containing 250 kilograms will reach Israel in the coming days.
In addition, as part of their cooperation, Canndoc will later export to Tilray five tons of cannabis for marketing under the Tilray brand, subject to approval for exports from Israel and compliance by Canndoc's facility with all the standards for exports from Israel and imports of the product to the target countries. If exports from Israel are not allowed, Tilray will buy five tons of the products that meet the new regulatory standard in Israel for marketing in the Israeli market.
Canndoc chairman Ehud Barak said, "The cooperation between Canndoc, a leading Israeli pioneer with 12 years of excellence in research, development and production, and Tilray, a global leader with the most extensive deployment in the world, is a significant breakthrough for both Canndoc and the entire Israeli market. This joint activity enables the two companies to offer a broad range of superb products for the benefit of patients in Israel, and worldwide in the near future. This agreement is an important milestone in Canndoc's growth strategy, and positions it in the forefront of the industry."
Tilray president and CEO Brendan Kennedy said, "To be able to import medical cannabis into Israel for patients in need is truly an historic moment not only for Tilray, but the whole industry. We’re incredibly honored to partner with an Israeli leader, CANNDOC, to help increase patient access in Israel while becoming the first to ship medical cannabis into the country. Israel represents our fifteenth export country and the second shipment from our EU Campus in Cantanhede, Portugal."
Published by Globes, Israel business news - en.globes.co.il - on January 2, 2020
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