An Israeli company pulled off a $110 million dollar deal to cultivate cannabis for export. That’s if the government can agree that exporting is a good thing.
Per Times of Israel
An Israeli company on Sunday announced a $110 million deal to grow and produce medical cannabis for a European buyer in what it said was the biggest agreement of its kind to be signed in Israel to date.
But it threatened that if the Israeli government did not approve the export of medical cannabis soon, it would sell its knowledge and expertise rather than the cannabis itself.
Medivie Therapeutic and its subsidiary High Pharma will earmark around 100 dunams (25 acres) of land to grow, produce and export up to 50 tons of medical cannabis to the investor each year.
In return, the investor will pay $30 million in the first year for completion of due diligence checks — after which it will reveal its identity — and for rental and preparation of the land, followed by $20 million a year for years two to six for the produce.
The location of the cannabis fields will depend on whether the Israeli government approves the export of medical marijuana.
Medivie CEO Menachem Cohen warned that the company would “not hesitate to transfer its activity and knowledge to other countries if export from the State of Israel is prevented.”
A clause says the contract can be canceled either if Israel fails to approve exports or if the company is unable to grow its crops in a European country, as an alternative.
Medivie holds the rights to a total of 200 dunams of land in Israel for the next 24 years and is seeking additional investors.
The exporting of cannabis has been a tricky thing in Israel. While it was announced that the country would allow for exporting of cannabis back in 2016.
As of 2017, it looked like Israel was on the fast track to becoming an exporter. August of last year, Prime Minister Neternyahu put a freeze on exports after a call with President Donald Trump brought up concerns of safety.
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