Merchavia Signs MoU for First Investment in the Medical Cannabis Sector
To invest $400,000 in an Israeli company developing a breakthrough technology for the consumption of medical cannabis oil in precise dosages, without heating - subjected to reaching a binding agreement
The unique technology, which does not require heating of the cannabis, protects the full cannabis medical characteristic, and allows taking medical cannabis according to a prescribed dosage, directly into the lungs, enabling maximum effectiveness
RAMAT GAN, Israel, Nov. 26, 2018 /PRNewswire/ -- Merchavia Holdings and Investments (TASE: MRHL), an Israeli investment company specializing in early-stage life science sector companies, announces that it has signed a non-binding Memorandum of Understanding (MoU) in an Israeli company developing a medical device that will allow the measured and precise consumption of medical cannabis, according to a pre-defined dosage and without the need of heating. According to the MoU, the company will invest a total of $400,000 in exchange for shares representing about 20% on a fully diluted basis.
This step is part of the implementation of the company's business strategy to invest in breakthrough technologies, with major worldwide potential and in high growth markets. As part of this strategy, and following the company's announcement one month ago, about its intention to begin investing in companies in the Cannabis field, when the deal becomes a binding agreement, Merchavia will invest for the first time in the aforementioned company.
Merchavia CEO Eli Arad: "We are happy to announce the signing of MOU for a first investment in the medical cannabis sector. The company, in which we will now invest, is developing a breakthrough technology, allowing consumption of medical cannabis oil by inhaling a precise dosage without need of heating, evaporation or burning.
"This attribute is of a unique kind and represents a huge advantage in the medical market, in which consumption today is carried out through smoking, evaporation or eating, methods with a number of basic disadvantages. These include a dosage that is not precise and which cannot be controlled, a change in the characteristics of the cannabis and creation of substances during heating or burning, which are absorbed into the body of the patient in addition to the medical materials.
"We intend to continue expanding Merchavia's investments portfolio in this field, with a focus on R&D companies, which in light of reform and regulatory procedures, and scientific and technological developments worldwide, create an exceptional investment opportunity."
According to Merchavia's information, the medical cannabis market is expected to grow to about $55 billion in 2024. Sales of cannabis concentrates on the cannabis market are expected to exceed $3 billion by the end of 2018.
As part of its investment in companies in the medical cannabis sector, Merchavia will realize its capabilities in the sector through life sciences and technology investments and fulfill its investment policy in this field, as well as its international connections with leading enterprises, which are also in the field of medical cannabis with an emphasis on R&D companies. The company is conducting talks with several other companies with R&D activities related to medical cannabis.
Contact:
Eli Arad
[email protected]
SOURCE Merchavia Holdings and Investments
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