Israeli medical cannabis company Together (TASE: TGDR) has announced an agreement for a joint venture with Premier Dead Sea, which produces cosmetics based on minerals from the Dead Sea.
The two companies will form a joint company in Europe, with Together holding 51% and Premier 49%. The goal is to produce a therapeutic product line with the unique qualities of Dead Sea minerals, combined with the ingredient CBD, an extract from the cannabis plant, and also additional cosmetics and care products which combine active ingredients from the cannabis plant.
The companies said that in order to reach the markets quickly, they will initially work on processing the raw material into the final product, and packaging it through a subcontractor in Europe, with all expenses being paid by the joint company. After examining the volume of activity and profit from the sale of these products, the joint company will work to establish a plant outside Israel.
For this purpose, Together will make available to the joint company, a shareholders’ loan of up to €2 million for building the factory. Repayment of the loan will be from the profits of the joint company and will precede any distribution of profits to the shareholders. All the expenses of the joint company, including its establishment, funding, operation and management, applicable to the period until the factory is built, will be evenly divided by the companies, as long as these expenses do not exceed $100,000 each.
Together CEO Nissim Bracha said, "We are pleased to have signed a binding agreement with Premier which will result in an additional source of profit for the company in the field of cannabis. The agreement will enable the production and marketing of products which combine the medicinal properties of Dead Sea minerals with those of a CBD compound. CBD products are already being marketed around the world, so we believe that the company, which will be based in Europe, will be able to create worldwide markets for us, wherever such products are sold. We are working to realize and promote additional agreements alongside the accelerated building of our greenhouses in Israel and abroad."
According to Together, CBD has a variety of properties that are beneficial to various diseases because of it anti-inflammatory, anti-bacterial, anti-oxidant and anti-aging properties.
Published by Globes [online], Israel business news - www.globes-online.com - on July 10, 2018
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