Partnership puts timeline in place for earned revenues
VANCOUVER, British Columbia, April 08, 2020 (GLOBE NEWSWIRE) — Isracann Biosciences Inc. (CSE:IPOT) (XFRA:A2PT0E) (ISCNF) (the “Company” or “Isracann”) an Israel-based company focused on becoming a premier low cost, high quality cannabis producer for both domestic and European export sales, is pleased to announce that further to its news release on March 24, 2020, it has acquired a 50% interest in a joint venture called Cannation Ltd. for a phased partnership of two near-term farm operations located in the Hefer Valley region of Israel.
Cannation has an offtake agreement with Focus Medical Herbs Ltd. (“Focus Medical”), a licensed medical cannabis producer in Israel, for a three-year definitive supply agreement with Cannation for approximately 2,600kg of medical cannabis per year, for a total of up to 7,800kg of medical cannabis over three years. Focus Medical has an exclusive commercial agreement with IM Cannabis Corp. (CSE:IMCC) to distribute its production under the IMC brand.
Isracann’s joint venture partner in Cannation is Way of Life Medical Cannabis Company. Way of Life is a regionally respected and active cannabis grower. The principals of Way of Life enjoy a family history of building and operating greenhouse operations across the middle east and proven sector ability with over 2-years experience as owners of a stable and productive cannabis farm servicing the domestic Israeli market. Their technical proficiency includes an active tissue culture program and most importantly, has resulted in securing critical plant genetics which will be available to the JV operation.
The Cannation farm properties are Israel Medical Cannabis (IMC) compliant and designed to EU-GMP certification standards. Cannation anticipates permits to begin selling its first crop by the end of Q2. Full scale production targets a combined total projected yield of 12,600kg of dried cannabis flow per year with facilities housing over 160,000 sq. ft. of greenhouse canopy. The Cannation farms are located on a 2,000,000 sq. ft. parcel of private land, which provides the potential for expanded production and processing operations. Private lands are rarely available in Israel and are free from the requirement of land commission regulatory approval, thereby minimizing licensing delays.
Company CEO, Darryl Jones notes, “Now that we have concluded the transaction, we are very pleased to be able to provide further insights into this exciting venture. Not only have we achieved a partnership agreement with a farm operation that is constructed, it also has already closed a major offtake agreement for the next three years. As we noted previously this accelerates our timeline to production and revenue. We look forward to a rapidly advancing and mutually beneficial partnership with the team at Way of Life and for the continued success of the Cannation venture.”
The JV compliments the Company’s existing medical cannabis project in Nir Israel pursuant to its joint venture agreements held by its wholly owned Israeli subsidiary, Cannisra Holdings Ltd. The Cannisra project will be a bespoke cultivation project to which the Company has spent significant time, effort and expense planning, designing and making regulatory application for the development of the cultivation facility.
In related news, and as part of the closing of the Cannation JV, the Company has issued 500,000 shares to a consultant for achievement of a performance milestone.
ON BEHALF OF THE BOARD OF DIRECTORS
Chief Executive Officer and President
About Isracann Biosciences Inc. (CSE:IPOT) (XFRA:A2PT0E) (ISCNF)
Isracann is an Israeli-based cannabis company focused on becoming a premier cannabis producer 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. For more information visit: www.isracann.com.
The CSE does not accept responsibility for the adequacy or accuracy of this release.
All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ, materially from the Company’s expectations are disclosed in the Company’s documents filed from time to time with the Canadian Securities Exchange, the British Columbia Securities Commission, the Ontario Securities Commission, and the Alberta Securities Commission.