2020 has been a banner year for the Israeli cannabis sector and this is a market that we have been bullish on since the start of our platform. The reason for our positive outlook is simple and is purely based on economics.
Israel has the ideal climate for cultivating cannabis and companies can produce premium cannabis flower for a fraction of what it costs to grow in North America. For more than 50 years, medical cannabis has been legal in Israel and it has been a leader in the sector as it relates to intellectual property (IP) and technology.
A few months ago, the Israeli Medical Cannabis Agency released the first set of data and charts on the medical cannabis market. Despite persistent supply and regulatory challenges, the number of medical cannabis patients in Israel has more than doubled in the past two years. Israel recently surpassed Germany as the largest importer of medical cannabis and there are more than 70,000 patients as of late August.
This announcement comes several weeks after launched medical cannabis products in Israel via a two-year agreement with Breath of Life International Ltd., a leading GMP certified Israeli cannabis company that has an extensive distribution network through a relationship with the largest pharmacy retailer in the country.
The HEXO-Breath of Life agreement served as a catalyst for the entire Israeli cannabis market and this is a trend that we are bullish on. Earlier this week, a leading Canadian cannabis producer launched a high-profile medical cannabis brand in Israel and the trend is picking up steam.
Earlier this week, Israel announced a new subsidy program that will reduce the cost of medical cannabis products until the end of 2020 and will allow Israeli producers to export their products. We are favorable on how the Israeli cannabis market is rapidly advancing and are following how the companies that are levered to the burgeoning market are performing.
If you are interested in learning more about the companies that are positioned to benefit from the growth of the Israeli cannabis market, please send an email to firstname.lastname@example.org with the subject line “Israeli Cannabis Companies” to be added to our distribution list and to learn more.