Israeli cannabis cultivation and production company Together (TASE: TGDR) has has signed a deal worth at least NIS 192.5 million with Canna-Tech. Together Pharma will cultivate at least five tons of medical cannabis produce annually for Canna-Tech at its Ashkelon farm, over five years for NIS 5.50 per gram, for a total of NIS 27.5 million per year and NIS 137.50 million over the entire period.
Together Pharma will also provide Canna-Tech with packing services in the factory that it is setting up for NIS 10 million annually over 5 years and a total amount of NIS 50 million over the period. Canna-Tech will also transfer a payment of NIS 5 million within three days of signing the agreement.
Together Pharma chairman Yohanan Danino said, "We are talking about a major, breakthrough deal in the local market, which promotes our business plan and reflects only a small part of the potential revenue and growth of Together Pharma in Israel and around the world."
Together Pharma CEO Nissim Bracha added, "The agreement with Canna-Tech represents the realization of our strategy to create large-scale revenue. Canna-Tech is led by excellent businesspeople with major business experience in Israel and abroad and we are ready to immediately fulfil the agreement at the Ashkelon farm in order to supply quality cannabis, according to the new regulation, of the highest standard.
Canna-Tech owner Shmuel Capuano said, "We are happy about the connection with Together in order to bring a new line to the Israeli and world cannabis market. We are working according to a detailed and precise multi-year plan and we found we had a joint language, personal relations and immediate connection with Together's owners, so that we can realize our vision and bring about change and a real remedy to patients."
The deal was initiated, led and supported by Adv. Chagit Weinstock, an expert on international regulation of cannabis and Partner in the Weinstock Zehavi law firm, and supported by Adv. Nir Zohar of the Pearl Cohen Zedek Latzer Baratz law firm.
Published by Globes, Israel business news - en.globes.co.il - on November 13, 2019
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