UNV signs new deal with Israeli cannabis startup

Cannabis

UNV-Medicine will manufacture a cannabis product for the startup in its facility.

UNV-Medicine, which recently merged with D-Pharm, today announced an unusual deal for a listed company in the cannabis growing sector. Under the agreement, UNV will produce a cannabis product in its facility for a startup, in exchange for an initial payment. When UNV begins producing medical cannabis oil, the startup will buy the active ingredient for its more complex products.

The initial payments, the amounts of which were not disclosed, will come after the production lines for the startup's products are designed, even before the facility begins the activity. The startup is solely responsible for financing for buying the equipment and planning the facility's space to meet its needs. UNV will receive a small steady stream of revenue from planning this activity, even before the facility is launched and before the first cannabis plants are harvested.

D-Pharm's share price rose 2.43% on the news, raising its market cap to NIS 78 million. D-Pharm's share price has soared 670% since the company entered the cannabis sector.

UNV CEO Golan Bitton told "Globes" in the past that construction of the facility, or actually the conversion of the company's existing facility to cannabis, had already begun. Bitton believes that the company will be able to sell cannabis in Israel as early as the first quarter of 2019. He added that he wanted to include in the facility a research laboratory for cannabis startups.

Published by Globes [online], Israel business news - www.globes-online.com - on September 13, 2018

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

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