Tefen raises NIS 11m to fund cannabis activity

Cannabis plant Photo: Shutterstock

Tefen is the latest in a series of Israeli cannabis companies to stock up on cash in anticipation of cannabis exports.

In anticipation of cannabis exports from Israel, expected to begin at the end of the year, cannabis companies have been raising capital. Yesterday, Tefen Industrial Engineering and Management and Systems Analysis (TASE: TEFN) announced an NIS 11 million private placement of shares and warrants. The share price in the round was NIS 7, with a half warrant issued per share at an exercise price of NIS 9. The share price in the placement is close to the company's market price yesterday morning. The controlling shareholders in the company, Alvit LCS Pharma and Ori Weiss, announced that they would invest a further NIS 1 million in the company at NIS 8 per share.

Tefen is about to take over new cannabis growing activity currently being set up. The company said that the money raised would be used to execute its business strategy of expanding its medical cannabis activity in Israel and in international markets.

Tefen's fund raising round is one more in a series of rounds by cannabis companies in Israel recently, among them InterCure Ltd. (TASE: INCR-L), which last week announced the largest round so far in this sector, amounting to $17.5 million, led by Gary Fegel. Cannbit Pharmaceuticals Ltd. raised NIS 24 million from a group led by Barak Rosen, and TechnoPlus Ventures, which has declared that it will enter the cannabis business but as yet has no real activity in that area, raised NIS 11 million. Fantasy Network raised NIS 1.4 million, in an offering that could yield a substantially higher sum if the warrants issued are exercised.

Published by Globes, Israel business news - en.globes.co.il - on February 18, 2019

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

Cannabis plant Photo: Shutterstock
Cannabis plant Photo: Shutterstock
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