Israeli high-tech investment company Merchavia Holdings and Investments (TASE: MRHL) has signed a Memorandum of Understanding (MoU) for its first investment in the medical cannabis sector. Merchavia said it will invest $400,000 in an Israeli company developing a breakthrough technology for the consumption of medical cannabis oil in precise dosages, without heating - subject to reaching a binding agreement. Merchavia will receive a 20% stake in the company for its investment.
Merchavia said that the unique technology, which does not require heating of the cannabis, protects cannabis's full medical characteristics, and facilitates inhaling medical cannabis, according to a prescribed dosage, directly into the lungs, enabling maximum effectiveness
This latest investment is part of the implementation of the company's business strategy to invest in breakthrough technologies, with major worldwide potential and in high growth markets.
Merchavia CEO Eli Arad: "The company, in which we will now invest, is developing a breakthrough technology, allowing consumption of medical cannabis oil by inhaling a precise dosage without need of heating, evaporation or burning. This is unique and represents a huge advantage in the medical market, in which consumption today is carried out through smoking, evaporation or eating, methods with a number of basic disadvantages. These include a dosage that is not precise and which cannot be controlled, a change in the characteristics of the cannabis and creation of substances during heating or burning, which are absorbed into the body of the patient in addition to the medical materials."
He added, "We intend to continue expanding Merchavia's investments portfolio in this field, with a focus on R&D companies, which in light of reform and regulatory procedures, and scientific and technological developments worldwide, create an exceptional investment opportunity."
Published by Globes, Israel business news - en.globes.co.il - on November 26, 2018
© Copyright of Globes Publisher Itonut (1983) Ltd. 2018