Israeli medical cannabis company Medivie Therapeutics and its subsidiary High Pharma has announced a $110 million deal to cultivate and manufacture medical cannabis products for a European client in what the company calls the largest deal of its kind in Israel to date, the Times of Israel reports. The company indicated that if the federal government did not approve medical cannabis regulations soon, it would sell knowledge and expertise rather than actual products.
Last month, Prime Minister Benjamin Netanyahu suspended a program approved by Finance and Health ministers to allow medical cannabis exportation. The program is now pending a policy review by the Health Ministry and National Economic Council chairman.
Two days after the announcement, Israeli news agency Hadashot reported that Netanyahu suspended the program after speaking with President Donald Trump. According to the report, the prime minister did not want to anger Trump by exporting medical cannabis – a practice only approved so far in Canada.
Medivie and High Pharma have set aside 25 acres of land to grow, produce, and export up to 50 tons of medical cannabis to the investor annually under the deal. The investor will pay $30 million in year one for the completion of due diligence checks and land rental/preparation. The investor will pay $20 million a year for years two through six for the products. CEO Menachem Cohen said that the firm would “not hesitate to transfer its activity and knowledge to other countries if export from the State of Israel is prevented.”
The client will not reveal its identity until after the due diligence checks are completed.
Get daily cannabis business news updates. Subscribe
End