Seattle, Washington, April 04, 2019 (GLOBE NEWSWIRE) — via NEWMEDIAWIRE — CFN Media Group (“CFN Media”), the leading agency and financial media network dedicated to the North American cannabis industry, announces publication of an article discussing ISRACANN Biosciences Inc. [Canadian Listed: IPOT (Pending)]. The company will be Israel’s first pure-play cannabis company to list on a Canadian exchange, with three licensed farms totaling 580,000 sq. ft. With plans to initially target an undersupplied domestic market before exporting into Europe, investors may want to keep an eye on the stock as it gears up to go public in Canada under the ticker symbol IPOT later this year.
North America may be capturing most of the headlines when it comes to the cannabis industry, but other global cannabis frontier markets could offer greater growth potential. Israel is already well-known as the cannabis research capital of the world. Similarly, it also has a nascent domestic cannabis industry with one of the highest ratios of cannabis consumers in the world and is well-positioned to become a leading exporter to Europe.
ISRACANN’s Unique Advantage
President and CEO Darryl Jones has over 15 years of experience in the capital markets where he raised risk capital for growth companies in the medical cannabis and natural resource sectors. In 2014, he took True Leaf Medicine public at a $10 million valuation and exited in 2016 at a $150 million market capitalization. He’s joined by an experienced team of cannabis and finance veterans with an established track record of success.
The company’s business model centers on four pillars:
- Cultivation: Israel’s climate provides the ideal conditions for low-cost production of high-quality cannabis. The company partnered with Yamko, a leading global construction firm, to ensure industry-leading facilities are constructed.
- Distribution: Israel has a massive domestic market with over 10,000 patients on a wait list and the potential for 50,000 patients by 2019. In addition, its proximity to Europe provides an efficient path to export growth.
- Branding: Israel’s well-known leadership position in cannabis research could set its products apart on the global market in the same way that Swiss watches have become the most popular brand of watch around the world.
- Research: Partnership with leading Israeli research institutions and Universities to leverage their expertise and bring novel products to market.
Currently, the company has agreements with three farms in Israel with cultivation licenses totaling 580,000 sq. ft. These operations have a fully-funded capacity of 232,900 sq. ft. with the ability to produce 23,500 kilograms of cannabis per year, and they’re scalable to 580,000 sq. ft. producing 50,000 kilograms of cannabis per year. Management believes that production costs could be as low as 40 cents per gram given the ideal climate and technology.
Israel’s Cannabis Industry
Israel has a well-earned reputation for being the world’s cannabis research capital. In 1964, Dr. Raphael Mechoulam isolated tetrahydrocannabinol (THC and CBO) at the Weizmann Institute of Science in Rehovot, Israel. Nearly three decades later, Israeli researchers discovered the endogenous cannabinoid anandamide. The country has been a pioneer in the research and development of cannabinoid technologies and therapeutics ever since.
The country’s government is also very supportive of the cannabis industry—unlike the United States. In 2007, Israel became the first country to allow both medical research and cannabis cultivation while also decriminalizing the recreational use of cannabis. There are already more than 10,000 patients in Israel that are currently on a waiting list for medical cannabis and the country has one of the highest ratios of cannabis consumers in the world.
Israel’s proximity to Europe also makes it an attractive springboard to much larger markets. The government approved cannabis exports earlier this year and analysts believe that regulations could be in place later this year. The European continent as a whole is home to 740 million people, which is double the population of Canada and the United States, the two largest cannabis markets today.
ISRACANN Biosciences Inc. [Canadian Listed: IPOT (Pending)] plans to become fully operational with harvests expected by late in the fourth quarter of this year. Given the strong valuations across North American cannabis companies, investors may want to keep a close eye on the stock ahead of its listing on a Canadian Stock Exchange later this year. The unique exposure to Israel’s market and the potential to expand into Europe could drive significant long-term value.
About CFN Media
CFN Media (CannabisFN) is the leading creative agency and media network dedicated to legal cannabis. We help marijuana businesses attract investors, customers (B2B, B2C), capital, and media visibility. Private and public marijuana companies and brands in the US and Canada rely on CFN Media to grow and succeed.