Merchavia completes investment in cannabis co Veoli

Rani Lifschitz

Veoli is developing a unique inhaler that enables patients to consume cannabis oil in an accurate dosage.

Merchavia Holdings and Investments Ltd. (TASE: MRHL) today announced the completion of its investment in cannabis company Veoli. Veoli is developing a unique inhaler that enables patients to consume cannabis oil in an accurate dosage without the need for heating, evaporation or burning. Merchavia's share price is down 3% today, after moderate gains following announcements in the preceding days.

On Tuesday, Merchavia reported the signing of a memorandum of understanding for an investment in CDx, which is developing a test for diagnosing prostate cancer. Under the agreement, $3 million will be invested in CDx at a $65 million valuation. Merchavia owns 7.8% of CDx, fully diluted, worth $5.07 million (NIS 17.5 million) at the valuation in the investment deal. Merchavia's entire current market cap is NIS 18.8 million.

A week ago, Merchavia reported a memorandum of understanding for investing in RMDY Health, which has developed a system that enables drug companies to quickly set up a solution for digital heath and communication with the consumer. If the deal goes through, Merchavia's shares of RMDY will be worth $1.1-3.7 million.

Merchavia has a number of other investments: a 6% stake in heart arrhythmia company CardiacSense, which recently obtained an investment at a valuation of $30 million; a recent investment in EFA, which is developing a product for taking blood counts in real time in a doctor's clinic; and cannabis company Spectrum Cann, a subsidiary of Bazelet, which owns a cannabis plant and runs a delivery service for consumers - Merchavia has signed a non-binding letter of understanding for a $1 million investment in Spectrum Cann. Merchavia also owns 5.7% of Games 4 Pain (G4P), a medical devices company that uses game techniques to help patients manage chronic pain.

Merchavia is managed by chairman Rani Lifshitz and CEO Eli Arad.

Published by Globes, Israel business news - en.globes.co.il - on August 15, 2019

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

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Rani Lifschitz
Rani Lifschitz
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