Timeline to first planting now measured in weeks
VANCOUVER, BC, — (GLOBE NEWSWIRE – May 7, 2020) – 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 for both domestic and European export sales, is pleased to provide an update provided by its Cannation Ltd. (“Cannation”) joint venture partnership regarding ongoing farm operations located in the Hefer Valley region of Israel.
Construction activities at the Cannation farms are nearing phase one completion and the recent offtake agreement with Israeli licensed producers Focus Medical Herbs Ltd. (“Focus Medical”) has greatly energized the Isracann team. With the increase in activities at its farm locations during the COVID-19 pandemic, Isracann continues to actively monitor the situation and is working closely with its in-country partners to implement preventative measures to safeguard the health of its stakeholders and contractors while ensuring scheduled milestones are met safely and efficiently.
The property currently encompasses two adjoining farms, of which the first property contains a 55,000 sq. ft. greenhouse which is now completed and awaiting final security inspection. The second farm includes a 110,000 sq. ft. facility that will be used for expansion of the business as the Company continue to build supply capacity beyond Israeli demand towards satisfying commercial EU opportunities. The 55,000 sq. ft. farm is scheduled to complete related infrastructure construction approximately 2 weeks from today, which includes an adjoining building outfitted to become a certified EU GMP post harvest facility. Upon successful completion and harvest of the first crop, a government inspection will occur and upon acceptance, a greenhouse licence would be granted for ongoing operations and commercial sales.
With the sale and use of medicinal cannabis an essential activity in Israel, Isracann’s contracts to provide additional domestic supply become increasingly relevant and important due to global lockdown impacts to supply chain capacity. The country was already partially reliant on imported product prior to local lockdown measures and, under current conditions, domestic demand is anticipated to grow. In addition to generating revenues, the near term launch will provide added visibility to the Company through its ability to showcase the quality genetics, high-grade plant strains and proven production expertise from the Company’s joint venture partners, Way of Life Medical Cannabis Company.
Post government testing and approvals, the balance of the initial harvest will be submitted as part of the offtake agreement with Focus Medical. The agreement encompasses a three-year 7,800 kg supply agreement. Focus Medical has an exclusive commercial agreement with IM Cannabis Corp. (CSE: IMCC) to distribute its production under the IMC brand.
Company CEO, Darryl Jones notes, “Its gratifying to have achieved so much in just one year. From our ongoing development efforts at our initial Cannisra Holdings project, to our exciting advancements in the Hefer Valley, we’ve mapped out an integrated package of properties with a multi-greenhouse strategy which includes a network of important partners and stakeholders across Israel and Europe. Our in-country visibility, ideas and approach have accelerated our timelines and presented us with a number of new and exciting opportunities along the way. Yet our primary objective has not changed; we remain 100% focused on becoming a premier cannabis producer, offering low-cost production marketed as Israel’s sunshine-produced high-quality branded products to the undersupplied and potentially massive European marketplaces.”
ON BEHALF OF THE BOARD OF DIRECTORS
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. 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.