Israeli medical cannabis company Together (TASE: TGDR) has signed a binding Memorandum of Understanding (MoU) to supply cannabis products to a German company. Together will supply the German company with 2.5 tons of dried cannabis inflorescences worth NIS 43 million.
Together estimates that total revenue from the deal, if a permit to export medical cannabis from Israel is not received, will be about €10 million annually (NIS 43 million) at a price of €4 per gram. If approval is obtained to export cannabis that is produced in Israel, then the price per gram will be €3.
This agreement is in addition to the MoU signed in Germany to supply 25 tons of medical cannabis to a German distribution company and an agreement with a Canadian company to supply 50 tons of medical cannabis.
The German company with which the agreement has now been signed has declared that it is in possession of all the required approvals and licenses from the relevant authorities, including an import license, for purchasing medical cannabis from foreign bodies.
Together CEO Nissim Bracha: "We are moving forward with the construction of our farms in Israel and in Uganda and making Together into an international company and signing binding MoUs to supply medical cannabis to the German company represents the fulfillment of our business strategy and joins other agreements including a binding agreement to supply 50 tons of medical cannabis to a Canadian company and an agreement to supply 25 tons of medical cannabis to a German distribution company. Looking ahead, we are continuing to examine and to promote cooperate with leading international players in the medical cannabis sector including additional potential customers."
Published by Globes [online], Israel business news - www.globes-online.com - on July 26, 2018
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