Mr. Darryl Jones reports
ISRACANN PREPARES TO IMPORT CANADIAN CANNABIS INTO ISRAEL AND EUROPE
Isracann Biosciences Inc. has determined to advance foreign importation of cannabis into Israel in response to perceived opportunity.
The Israeli market for medical cannabis continues to grow at a rapid pace. Now, with over 80,000 medical patients (Israeli Medical Cannabis Agency (IMCA) data), the domestic growers are struggling to keep up with demand. This is good news for Isracann's farm, which is coming on line in the near term.
Additionally, this gap in supply has created a robust cannabis importation market. It has been apparent for some time that Israel has had to rely on cannabis importation to meet domestic needs. In fact, reports indicate that it is currently the world's largest importer of cannabis flower, having surpassed Germany. Recent reports also note Israel has subsequently increased importation quality assurance (QA) requirements. These stringent regulations have eliminated some candidate countries (for example, Uruguay) from import licensing. Isracann has observed the situation and noted an uptick in demand and acceptance of increasingly desirable Canadian flower.
Recent talks with Isracann's growing network of Israeli stakeholders, distributors and agents have resulted in the determination to leverage the company's Canadian roots as motivation to gain approvals to establish importation as part of the company's strategic plan. The addition of import sales will provide several positive advantages, including an additional revenue stream, brand differentiation with strains not yet introduced to the Israeli market, and an ability to test internal processing facilities and trial distribution arrangements both domestically and through resales to European partners.
To facilitate and expedite the process, Isracann has entered into an agreement with United Greeneries Ltd. the cultivation subsidiary of Costa Canna Group, to export Canadian cannabis on an exclusive basis into Israel and with a non-exclusive agreement for entry into the European markets. Under this agreement, Isracann will enjoy an ability to source product grown by both United Greeneries and Canadian third parties, effectively providing access to the entire Canadian marketplace.
Matt Chatterton, chief operating officer of Isracann, stated: "Our long-term relations in Canada have just provided us an opportunity which provides us great leverage. We gain a fast track to revenues by supplying highly desirable Canadian flower products to our medical market in Israel, build significant brand awareness in doing so, and have the decided advantage of having a processing facility operationally prepared that not only meets all our domestic regulatory QA needs, but also meets the European EU-GACP [European Union good agricultural and collection practice] and EU-GMP [European Union good manufacturing practice] requirements.
"We are ready to begin this new aspect of our venture and this agreement with Costa Canna provides a great deal of experience and flexibility," Mr. Chatterton noted. "We achieve immediate access to established specialty strains, including ones that include ultrahigh THC [tetrahydrocannabinol], high CBD [cannabidiol], balanced and specialty craft-grown strains through a partner with the ability to supply flower, oils and prepackaged products. In addition, we are already partnered with a leading Israeli logistics team who has the knowledge and expertise when it comes to managing shipping and importation requirements. This is an exciting opportunity for us and for our shareholders as we look forward to building added value and exciting momentum in the coming weeks and months ahead."
About Isracann Biosciences Inc.
Isracann is an Israeli-based cannabis company focused on becoming a premier cannabis producer/distributor offering low-cost production targeting undersupplied, major European marketplaces. Based in Israel's agricultural sector, Isracann will leverage its development within the most experienced country in the world with respect to cannabis research. The company has secured agreements within Israel for medicinal marijuana cultivation.
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