An Israeli company has signed a deal worth $110 million, the country’s biggest so far, on Sunday, with a European buyer, The Times of Israel reported.
But Medivie Therapeutic and its subsidiary High Pharma warned the Israeli government that if it did not approve the export of medical cannabis soon, it would sell its knowledge and expertise rather than the cannabis itself.
The Times of Israel did not name the European buyer. Medivie Therapeutic will use around 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 daily reported.
So far, the location of the cannabis fields has not been approved as it is depending on the Israeli government approval of medical marijuana export.
There is also a clause which allows the cancellation of the deal either if Israel fails to approve exports or if the company is unable to grow its crops in a European country, as an alternative.[share-btn]