Together buys German co with cannabis import license

Medical cannabis Photo: Shutterstock

The Israeli medical cannabis company estimates it will be able to sell dried inflorescences for €10-12 per gram directly to pharmacies in Germany.

Israeli medical cannabis company Together (TASE: TGDR) has begun operating in Germany's medical cannabis sector, after signing a detailed agreement to acquire control of a German company with a wholesale trading license for narcotic treatments from Germany's Ministry of Health including medical cannabis. Together, which cultivates, produces and markets medical cannabis will acquire 50.1% of the German company for €2 million, which will be extended as a loan, and provided to it, according to the German company's needs, and according to decisions by the German company's board of directors. Financing of the loan to the German company will be carried out by the company, when the time comes, by a capital offering or by issuing a bond.

Completion of the deal is subject to conducting full due diligence of the German company over a period of no longer than 40 days.

The acquisition deal was supported by Adv. Hagit Weinstock of the Weinstock Zehavi & Co. law firm, which specializes in international collaborations and transactions in the cannabis market. Completion of the deal will immediately make Together the controlling owner of a cannabis distributor in Germany both through cultivation at its farm and by importing and distributing medical cannabis products made by other international companies.

Together will import to Germany about 100 kilograms of dried medical cannabis inflorescences from a third party. The Israeli medical cannabis company estimates it will be able to sell dried inflorescences for €10-12 per gram directly to pharmacies in Germany.

The German company is also conducting R&D into unique varieties of medical cannabis, which have come to Germany from sources in the Himalayas, and the company is researching the influence of these varieties that it owns on different illnesses in order to create patent protected IP.

Germany is one of the world's main and largest markets for medical cannabis, and acquiring control of the German company will provide Together with a significant advantage and place it alongside the world's leading medical cannabis producers and suppliers and help it realize its strategy of creating revenue and profits from several countries worldwide.

Together CEO Nissim Bracha said, "Signing the detailed agreement for acquiring the German company places us in the front row of international medical cannabis companies because it lets us generate revenue in Germany and consolidate a foothold in commercial operations in Europe. We are already currently working to purchase medical cannabis from international sources in Europe while using the import and distribution license of the German company to distribute it to German pharmacies. In addition, it is our intention to produce IP by promoting the R&D of the German company, which is developing unique strains and testing their influence on various illnesses. We believe that creating revenue and the success of the German company's R&D will result in generating value for Together's shareholders."

Published by Globes, Israel business news - en.globes.co.il - on November 11, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

Medical cannabis Photo: Shutterstock
Medical cannabis Photo: Shutterstock
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