Israeli medical cannabis company Together Pharma (TASE: TGDR) reports that it has signed a memorandum of understanding (MoU) with a company controlled by a Chinese corporation to form a joint venture. The joint venture, equally owned by Together and the Chinese corporation, will launch operations in China and will operate in the medical cannabis sector. Following the signing of a detailed agreement, the Chinese company will invest $1 million and fund the establishment the new venture.
The company estimates that the CBD-based food, beverage, pharmaceutical, and cosmetics products market in China is a market with major growth potential in the coming years, and entering these sectors will be conducted through the joint venture.
The Chinese company will work towards receiving all the required approvals and licenses for setting up the joint venture. The Chinese company will also finance all the necessary expenses including allocating land for building medical cannabis cultivation facilities, a GMP standard factory, R&D laboratories for products, and a marketing and distribution network in China, through owners loans, while Together will provide all the required knowhow and patents for products in the medical cannabis sector, for the uses of the joint venture.
The agreement represents the realization of Together's business strategy for international expansion with the aim of enlarging the company's assets and diversifying its sources of revenue and profit from several countries around the world. The operations in China are in addition to Together's operations in Israel, Uganda, Germany, and Portugal, and the company is examining expanding to other countries.
Together Pharma CEO Nissim Bracha said, "We continue to implement the company's business strategy of building an international presence in markets with major economic potential for us. Establishing the joint venture in China includes investment from the Chinese partner in Together Pharma totaling $1 million, alongside setting up operations in China and financing by the partner. We are confident about this move into the medical cannabis sector as well as other associated fields in China."
Together Pharma's chairman is Israel's former chief of police Yohanan Danino.
Published by Globes, Israel business news - en.globes.co.il - on July 24, 2019
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