VANCOUVER, British Columbia, Oct. 14, 2020 (GLOBE NEWSWIRE) -- Isracann Biosciences Inc. (CSE: IPOT) (XFRA: A2PT0E) (OTC: ISCNF) (the “Company” or “Isracann”) an Israel-based company focused on becoming a premier low cost, high quality cannabis producer is pleased to announce that the government of Israel has officially enacted the legislation for the export of medical cannabis, clearing the way for sales abroad that the government expects could generate more than 1 billion shekels ($273 million) in annual revenue.
Economy Minister Eli Cohen gave final approval for the exports more than a year after the cabinet initially supported the legislation. Within Israel, medical use of cannabis is permitted with recreational use largely decriminalised. The ministry reports about 70,000 Israelis currently use medical cannabis consuming an estimated 25 tonnes per year. If this growth trend continues, Israel could see a market of over 200,000 medical patients consuming 85 tonnes per year within the next two years.
As reported by Reuters, Hagit Weinstock, co-founder of the Weinstock-Zehavi & Co. law firm and a pioneer of cannabis regulation in Israel stated, “There are many investments that we are expected to see happening now, because investors were waiting for this approval.”
According to recent reports, the Israeli Ministry of Health has launched a new pilot program whereby medical cannabis producers will be approved to export medical cannabis, subject to concurrent product availability to Israeli patients at a fixed discount price of NIS14 per gram (CAD$5.50 per gram) for patients over 21 years old, and NIS10 (CAD$4.00 per gram) for those patients under 21 years old.
Previous reports have outlined how Israel has struggled with cannabis product shortages, as well as complaints about price and quality, which led to the country becoming one of the world’s largest importers of medical cannabis. The pilot program is planned for an initial three-month period during which the specific medical cannabis products to be provided in Israel and made available for export are at the individual producer’s discretion.
Company COO Matt Chatterton notes, “Todays news is a win-win for both the medical patients in Israel and the domestic producers. Export licensing will be a huge economic driver for the licensed producers and an incentive for investment that should spur rapid growth across the industry. The government’s plan to ensure subsidies for the domestic market will see supply finally catch up to demand along with stabilization of the supply chain through improved product processing and quality assurance that is required for entry into export markets. Its been an extensive process to get to where we are today, but with todays announcement we find ourselves in great shape as we continue to build our company and shareholder value in Israel.”
ON BEHALF OF THE BOARD OF DIRECTORS
“Darryl Jones”
Darryl Jones
Chief Executive Officer and President
About Isracann Biosciences Inc. (CSE: IPOT) (XFRA: A2PT0E) (OTC: 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. The use of any of the words “anticipate”, “continue”, “estimate”, “expect”, “may”, “will”, “would”, “project”, “should”, “believe” and similar expressions are intended to identify forward-looking statements. There can be no assurance that such statements, including the impacts of the COVID-19 pandemic and supply and demand trends in the cannabis industry, 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.
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