Israeli medical cannabis company Globus Pharma, controlled by Together Startup Network Ltd. (TASE:TGTR), has signed a contract to supply cannabis to a Canadian Company.
The contract states that the price paid per gram is dependent on the Canadian company’s total revenue.
Together’s minimum revenue in 2019 from the Canadian company should be $15 million and $60 million in 2020.
The maximum revenue is estimated at $150 million. The agreement has been signed for a 5-year period.
The Canadian company has committed to purchasing a minimum amount of either five tons of cannabis plants or 500 kilograms of cannabis oil in 2019.
In 2020, the arrangement is four time as much cannabis plants (20 tons) or two tons of cannabis oil.
Globus Pharma is hopeful they will be able to produce and export more than the agreed minimum amount.
Import & Export
Currently, businesses in Israel are not permitted to export cannabis.
Globus Pharma will be manufacturing and exporting to Canada from Africa.
The CEO of Together Startup Network Ltd, Nissim Bracha stated that they will be able to export from Africa by March 2019. The Canadian company, who is not disclosed, has permission to import cannabis into the country.
Historically this will be the first time such large amounts of cannabis will be legally transported from one country to another.[share-btn]